Layoff announcements made by Michael Morhaime, a founding member of Blizzard, at his latest venture, Dreamhaven.
In a recent development, Dreamhaven, the gaming publisher known for titles like Sunderfolk and Wildgate, has announced layoffs within its organisation, primarily affecting its publishing group. The news comes a little over a week after a Bloomberg report indicated that Dreamhaven is struggling to keep up with its monthly expenses outpacing revenue.
The layoffs, announced in a statement posted to LinkedIn by Dreamhaven's co-founder, Mike Morhaime, do not affect the ongoing development of games like Wildgate, Sunderfolk, and others. However, it seems that the publisher is facing difficulties in maintaining high concurrent player numbers for some of its games.
For instance, Wildgate reached a peak of 7,799 concurrent players but has since dropped to over 500. Dreamhaven's other game, Sunderfolk, peaked at 890 concurrent players on Steam, while Lynked: Banner of the Spark has a 24-hour peak concurrent player count of just 11.
Mechabellum, a Dreamhaven acquisition in 2025, currently has unspecified low concurrent player numbers as well. Dreamhaven has yet to secure an even moderate hit in the gaming industry, despite Morhaime's significant contributions to popular games like Warcraft, Diablo, StarCraft, Hearthstone, and Overwatch during his tenure at Blizzard.
In an effort to ensure the company's survival, Dreamhaven is focused on "urgently reducing costs". The representative from Dreamhaven confirmed that ongoing development of games like Wildgate, Sunderfolk, and other projects is not affected by the layoffs.
Morhaime expressed gratitude for the contributions of the employees leaving the company and remained committed to supporting its games and the communities around them. The world now is very different from the world when Dreamhaven was first announced, and it seems that the gaming industry, covered extensively by representatives like Andy Chalk at PC Gamer, continues to evolve rapidly.
As Dreamhaven navigates these challenges, it remains to be seen how the company will fare in the competitive gaming landscape. The representative from Dreamhaven declined to comment on the number of employees let go, but the publisher's commitment to its games and communities remains steadfast.