Over at VentureBeat, Dean Takahashi an interesting story on Blizzard Software cutting its workforce by around 600. SWTOR is cited as one impact, as is the life cycle of a long-standing MMO like World of Warcraft:
The cuts are believed to focus on the company’s community service department. World of Warcraft, the company’s flagship game, has seen its subscriber numbers fall from 12 million subscribers in 2010 to 10.2 million in the last quarter.
Atul Bagga, an analyst at Lazard Capital Markets, said in a note that the cuts were probably 20 to 30 percent of the company’s customer service staff. He said the headcount reduction is likely linked to the downward slope of World of Warcraft usage. He believes that WoW’s subscriber base will fall 300,000 to 400,000 users in the current quarter, due to churn and tougher competition from titles such as Star Wars: The Old Republic.
For what it’s worth, I don’t buy the line that SWTOR is having that much of an impact – at least yet. The life cycle issue is the much more pertinent one. At yesterday’s Australia/New Zealand launch, I heard a gaming journalist behind me say to the colleague next to him that he was underwhelmed by SWTOR because of it’s graphics – why would he play this when he has (insert latest console FPS) at home with its stunning graphics. He then went onto say it was the same reason he avoided WoW back in the time of Burning Crusade.
It’s a stark reminder of how old WoW is, and that has to be impacting subscriber numbers. Add up-and-comers like SWTOR and other MMOs on the horizon such as Guild Wars 2 and you can see there’s probably a downward trajectory for WoW. Not a terminal trajectory by any stretch however – even if SWTOR does pick up a few million more players.
Over to you: is SWTOR responsible to any great extent for the pain of layoffs over at Blizzard?
[Thanks to David K for the heads-up!]
After spending an extensive amount of time in my youth playing text based MUD’s and MUSH’s, then followed by time spent playing World of Warcraft, Guild Wars and a brief dabble in EVE, I can say that I’m looking forward to the arrival of SWTOR. There are, however, a few things I’d really like to see when I finally embark on my virtual journey in a galaxy far, far away.
One of the most common stories you’ll see, as the anticipation builds to SWTOR launching, will revolve around one question: will it be a World of Warcraft killer? As the long-standing tall poppy, there’s plenty of people that want to see WoW knocked down a peg or two. I’m not one of them, but it’s a concept worth exploring.


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