Blizzard's new compensation policy cuts bonuses for Overwatch 2 devs

New compensation policies at Blizzard have cut bonuses for Overwatch 2 developers, sources tell Bloomberg's Jason Schreier.

3

New reports have pulled the curtain back on the complex inner-workings of game development at the industry's former-largest independent publisher, Activision Blizzard. On top of layoffs, a new compensation plan at Blizzard has further stressed developers. The plan has changed the way developers receive their bonuses (if at all).

The new policy was instituted in 2023. Before the change, Blizzard would dole out bonuses to all employees based on the overall success of the publisher. If Blizzard's earnings were up, then everyone would get a bonus. The new policy only gives bonuses to the teams that are successful. For instance, in 2023, Diablo IV generated $666 million in just 5 days via game sales alone. The Diablo team's success doesn't affect other teams within the confines of the newer bonus scheme.

Sources have told Bloomberg's Jason Schreier that Overwatch 2 developers have not received their second round of bonuses due to the game's overall performance on the market. The sequel's launch was controversial and led to lower-than-expected revenues. Overwatch 2 didn't make enough profit to trigger Blizzard's bonus compensation strategy, which allows for up to 2 bonuses per year based on how well the teams have done.

For reference, Activision's earnings records show that Blizzard made a record-breaking $409 million in operating profit throughout Q2 2023, and potentially pointing to 2023 delivering a new annual profit high for the games division.

3