Dreamhaven, the studio founded by ex-Blizzard president Mike Morhaime, is already facing turbulence less than two months after launching its first big project, Wildgate. 
The PvP shooter, which mixes on-foot first-person combat with ship-to-ship battles, officially debuted on July 22. Despite the excitement surrounding its release, reports have now confirmed layoffs at the company, raising questions about its long-term stability.
Morhaime acknowledged the layoffs in a LinkedIn post, though he stopped short of confirming how many employees were affected. According to his statement, the cuts primarily impacted the publishing group. These weren’t just background roles – Morhaime described the departing team members as “talented colleagues who have played a key role in building Dreamhaven’s foundation.” He credited them with driving efforts like the Dreamhaven Showcase and helping bring not only Wildgate but also two other titles into the public eye. His message carried both gratitude and regret, underlining that their contributions will be missed.
Importantly, Morhaime insisted that the studio’s overall mission remains intact. He emphasized optimism for Dreamhaven’s future, framing the layoffs as a difficult step during an otherwise eventful year. This reassurance seems aimed at investors and fans who worry that the job cuts hint at deeper trouble behind the scenes.
Context matters here: Dreamhaven is not just another startup. The studio is stacked with former Blizzard veterans and developers with experience on projects like Sea of Thieves. That pedigree shaped Wildgate’s unusual gameplay blend of sci-fi naval combat and traditional FPS gunplay. Early previews, including one from Wccftech’s Alessio Palumbo, praised the game’s sense of fun and likened its art style to Blizzard’s signature look, while comparing its systems to a futuristic take on Sea of Thieves.
Still, the layoffs highlight the reality of today’s volatile games industry, where even high-profile teams with strong résumés aren’t insulated from financial pressure. Fans have already expressed skepticism, some suggesting that questionable design choices or corporate strategies may have contributed to the situation. While speculation is rampant, what’s clear is that Dreamhaven must now prove that Wildgate can sustain itself and that the studio’s future projects can deliver on the promise of its talent pool. For now, the community watches closely to see if this is just a stumble or the beginning of a rougher road.