Dreamhaven, the company launched in 2020 by Blizzard co-founder Mike Morhaime, is laying off an undisclosed number of employees, primarily from its publishing group.
"These choices are never easy—they affect talented colleagues who have played a key role in building Dreamhaven’s foundation and supporting what has been an eventful year for us," Morhaime said in a statement posted to LinkedIn.
"From organizing the Dreamhaven Showcase to helping launch three games, every person at Dreamhaven has contributed to sharing our games with the world. I’m deeply grateful for the creativity, dedication, and hard work of the teammates we are parting ways with. They will be truly missed."
The layoffs come a little over a week after a Bloomberg report indicated that Dreamhaven is struggling. Morhaime said in an internal email cited in the report that "our monthly expenses are outpacing revenue," and that it was focused on "urgently reducing costs" in order to ensure the company's survival.
It's fair to say that expectations for Dreamhaven were great when the company was first announced. As one of the driving forces behind Blizzard during its glory days, Morhaime's name sits atop an enviable litany of legendary games: Warcraft, Diablo, StarCraft, Hearthstone, Overwatch, and more. But the world now is very different from the world then, and Dreamhaven has yet to secure an even moderate hit.
Sunderfolk, developed by Dreamhaven's Secret Door studio, was critically well received but amassed a peak concurrent player count on Steam of just 890; Wildgate, released a couple months later, achieved a peak of 7,799 concurrent players, but that figure has since declined to just over 500 right now.
Dreamhaven also published Lynked: Banner of the Spark, developed externally by FuzzyBot, which currently has a 24-hour peak concurrent player count of just 11, and Mechabellum, which it took over in 2025 after developer Game River split with original publisher Paradox. Morhaime said in his statement that Dreamhaven remains "committed to supporting these games and the communities forming around them," but numbers like that are simply not sustainable.
"Today's layoffs were focused on Dreamhaven's publishing group," a Dreamhaven representative told PC Gamer. "Ongoing development of Wildgate, Sunderfolk, and other projects is not affected." Dreamhaven declined to comment on the number of employees let go.
