Blizzard co-founder’s game startup struggles amid industry glut

People play video games during Gamescom 2025, a computer and video game industry event, in Cologne, Germany. Many of the new games struggling to find their audience are designed for multiple players at once, a particularly saturated genre, but one that looks to generate revenue from recurring in-game purchases, not quick upfront sales. — Reuters

Mike Morhaime, a co-founder of video-game giant Blizzard Entertainment, sent a letter to staff at his new company Dreamhaven this week that he wished he didn’t have to write.

One month after Dreamhaven launched Wildgate, a multiplayer shooter game, the company had sold just 130,000 units, according to the letter, which was seen by Bloomberg News. The company’s other game, Sunderfolk, sold just 62,000 copies since its April debut, Morhaime wrote.