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Dreamhaven’s Layoffs Shake Studio, Wildgate and Sunderfolk Continue Development

Blizzard co-founder Mike Morhaime has confirmed layoffs at Dreamhaven, the publishing company he established after leaving the developer behind World of Warcraft. Writing on LinkedIn, Morhaime said cuts were concentrated in the publishing division following weak sales of multiplayer titles Wildgate and Sunderfolk, which have sold approximately 130,000 and 62,000 units respectively since launch. According to an internal memo, monthly expenses had begun outpacing revenue, prompting the company to reduce headcount and offer severance packages to affected employees.

Morhaime emphasized that active development on Wildgate, Sunderfolk, co-op roguelite Lynked, and auto-battler Mechabellum continues without change. A Dreamhaven representative reiterated to PC Gamer that all ongoing multiplayer projects remain fully staffed and supported for their player communities. The company has not disclosed the number of people affected by the restructuring.