Microsoft cancels long-awaited Blizzard game after 6 years in development, following Activision acquisition approved

Microsoft’s recent acquisition of Activision has led to a significant development: the cancellation of a new Blizzard video game that had been in development for six years.

Cancelled Blizzard game

The game, codenamed “Odyssey”, was a survival game and would have been Blizzard’s first new IP since the release of Overwatch.

The cancellation was part of a broader reorganization under Microsoft, which led to mass layoffs of 1,900 people, or 8% of the gaming division’s total staff.

The game was announced in 2022 but had yet to be named or have a trailer released. The cancellation has left many in the industry disappointed, as it was one of the most anticipated projects from Blizzard. The decision to cancel the game was part of Microsoft’s broader layoffs in its video game division, which included staff from various studios it had recently acquired, including Activision.

The game’s cancellation was reportedly due to engine issues during its six years of development.

Initially, the game was prototyped using Epic Games’ Unreal Engine, but Blizzard executives decided to switch because it wouldn’t support their ambitions for vast maps supporting up to 100 players at once.

The cancellation of the game and the layoffs have raised questions about Microsoft’s strategy for its newly acquired studios and the future of game development under its umbrella. As a result, the gaming community will be closely watching Microsoft’s next moves in this space.