Blizzard co-founder Mike Morhaime left Blizzard because he was reportedly tired of fighting with former Activision CEO Bobby Kotick, according to those who worked closely with him, the two leaders having butted heads for years regarding the future of Blizzard.
New details about Morhaime’s 2018 departure and Blizzard’s contentious relationship with Activision come via an excerpt from Bloomberg reporter Jason Schreier’s upcoming book Play Nice: The Rise, Fall, and Future of Blizzard Entertainment , which releases on October 8 (the same day Blizzard’s first expansion for Diablo 4, Vessel of Hatred, launches).
For years, Morhaime attempted to keep Activision, which acquired Blizzard in 2007, at bay. That goal of keeping Blizzard insulated from outside Activision pressure became harder in 2013 when Blizzard canceled project Titan, an FPS MMO that had been intended to be the next World of Warcraft, according to Schreier.
After the project’s cancellation, which cost Blizzard around $80 million, Kotick and Activision began to assert more control over Blizzard, including pushing Blizzard to hire a chief financial officer, Armin Zerza, to keep costs in check. Zerza just “kept talking about how to make as much money as possible,” according to one former employee, and at one point suggested axing Blizzard’s annual BlizzCon fan convention, confused as to why a project with such low profit margins was allowed to exist, according to Schreier’s sources. Blizzard announced this year there would not be a BlizzCon 2024.
Morhaime continued to battle Kotick in the following years, defending Blizzard’s need for customer service employees and the studio’s cinematics team. Following a meeting of Activision, Blizzard, and King leaders focused around the theme of “One ABK,” Morhaime feared Blizzard was losing its independence, according to Schreier. He wrote a lengthy email to Kotick in response, stating he believed “preserving Blizzard’s culture and magic” was a necessity in order to attract and retain “the best creative talent in the world.” He additionally said that it had been “increasingly hard for me to provide Blizzard leadership and staff confidence that Blizzard has a stable future.”
In 2017, Morhaime submitted a resignation letter, but was persuaded at the time by Kotick and others to take it back. Following the One ABK meeting in the spring of 2018, Morhaime formally announced his departure that October, saying it was time for someone else to lead.
Blizzard’s story would of course continue, but without the man that Schreier said many Blizzard staff worshiped. Morhaime went on in 2020 to found a new game studio and publisher, Dreamhaven. Blizzard, meanwhile, in 2021 found itself embroiled in controversy following an explosive state of California lawsuit that accused Activision Blizzard of systemic sexual misconduct and discrimination, eventually settling with the state in 2023 to the tune of $54 million. Morhaime said in a statement addressing the lawsuit that he was “ashamed.”
“To the Blizzard women who experienced any of these things, I am extremely sorry that I failed you,” Morhaime said.
In the wake of the lawsuit, Microsoft bought Activision Blizzard for $69 billion, with Kotick stepping down as Activision Blizzard CEO in December 2023.
