Activision suffers layoffs due to weak ‘casual’ performance

Activision's weaker-than-expected earnings in the casual gaming market has caused the publisher to refocus its business strategy. As a result, the company was hit with layoffs.

Other than confirmation of the layoffs, Activision offered little specifics in terms of specifics. However, GameInformer claims there's "reason to beleive that the Minneapolis, Minnesota location has been affected."

In response to inquiries, Activision offered the following statement to GameInformer:

“As announced on our earnings call, our games for core audiences did extremely well, but the casual audience has not yet emerged on next gen consoles. So we are refocusing to better align with Activision’s long-term priorities because, as always, our strategy evolves to keep us ahead of a rapidly-changing industry. We are working with those impacted by the changes to offer outplacement services and support.”

In its most recent earnings call, Activision revealed that both Guitar Hero and Skylanders — two of its more "casual"-based games — under-performed this year.

Details regarding the possible closure of Activision's Minneapolis office were tipped off by a significant other of an alleged Activision employee. Activision didn't confirm nor deny the information.

Activision previously revealed that Guitar Hero would strictly be service-based this year, with no new boxed title arriving in 2016. Additionally, the publisher scaled back its licensed games business, which was handled in part out of the Minnesota location. This year's lineup includes so far Teenage Mutant Ninja Turtles: Mutants in Manhattan and a rumored Ghostbusters game that ties in with Sony's upcoming reboot.

It's unclear exactly where Activision's shift in strategy will refocus to. Of course, Activision has its core blockbusters like Call of Duty and Destiny, but the company is also exploring other markets, including the movie industry with the upcoming Warcraft movie and eSpots with its new ownership of Major League Gaming.

Best of luck to all affected.