Beloved creative director Chris Metzen is returning to Blizzard to help lead the studio during a big transitional period.
Blizzard is changing. On a cultural level, the studio has struggled with sexual harassment allegations, leading to multiple lawsuits and shocking testimony of worker treatment and abuse. Blizzard has also struggled with production: Before Diablo 2 Resurrected's launch in 2021, Blizzard had not released a new product for many years. Now Blizzard management is trying to solve both issues and has recruited studio vets to help make it happen.
According to a new report from Bloomberg, former Blizzard creative Chris Metzen is returning to the studio to help kickstart these new initiatives. Management hopes that Metzen's return will embolden morale and lead to better culture while offering inspiration to workers who are developing new games and content. Metzen could help get Blizzard back on track with culture and production.
Metzen will start with World of Warcraft and then move on to other franchises as needed, possibly including Blizzard's new fantasy online survival game.
Metzen's come back is set during an interesting time. Blizzard has expanded greatly since 2016 with its new mobile gaming endeavors, and mobile is now a significant contributor to Blizzard's earnings.
Diablo Immortal's successful release has surged Blizzard's mobile revenues to new highs; Blizzard made a record-breaking $121 million in net revenues from mobile in Q3 2022 driven by Diablo Immortal. Mobile remains one of Blizzard's key expansion points and could help jumpstart a new era of long-term revenues for the developer.
Metzen's return could help accelerate the release slate of new Blizzard games and content. Management has reportedly pressured the Blizzard segment to deliver more games in order to help buffer Blizzard's falling operating income. For the past 5 years in a row, Blizzard's operating income has dropped below $1 billion, hitting a low of $464 million in 2019 due to the lack of new products.