Mike Morhaime’s exit from Blizzard in 2018 stemmed from ongoing clashes with Bobby Kotick.
Fresh insights into Morhaime’s departure and the strained ties between Blizzard and Activision emerge from Jason Schreier’s book, Play Nice: The Rise, Fall, and Future of Blizzard Entertainment, which will be available on October 8, coinciding with the launch of Diablo 4’s first expansion.
Morhaime’s effort to shield Blizzard from Activision’s influence became more challenging after the costly cancellation of project Titan in 2013. Activision, displeased with the $80 million loss, started to tighten its grip, even installing Armin Zerza as CFO to oversee finances. Zerza’s focus on maximizing profits led to suggestions like ending BlizzCon, which was seen as not profitable enough.
We feel that sometimes business decisions can overshadow creative freedom.
Despite Morhaime’s continuous defense of Blizzard’s unique culture, he felt increasingly pressured and worried about Blizzard’s future. In 2017, he tried to resign but was convinced to stay. However, after a pivotal “One ABK” meeting in 2018, he finalized his decision to leave, believing it was time for new leadership.
Following his departure, Morhaime started Dreamhaven in 2020. Meanwhile, Blizzard faced significant challenges, including a major lawsuit in 2021 over sexual misconduct and discrimination, which they settled for $54 million in 2023. Morhaime expressed his regret, saying, “To the Blizzard women who experienced any of these things, I am extremely sorry that I failed you.”
In the aftermath of the lawsuit, Microsoft acquired Activision Blizzard for $69 billion, with Kotick stepping down as CEO in December 2023.
