At Blizzard, the management staff is changing. J. Allen Brack is leaving the company and will be replaced by dual leadership. The change in staff should be seen in the light of the California state lawsuit of harassment and discrimination against female employees.
In addition to Brack, the head of the HR department involved, Jesse Meschuk, is also leaving the company. Brack himself will “pursue new professional perspectives” in the future, writes Blizzard briefly. Reasons for his departure are not given. But they also emerge from recent events: Under the leadership of Brack, the renowned studio slipped into the latest scandal and made mishaps such as the disrespectful announcement by Diablo Immortal.
Last but not least, Brack's condemnations of the “connection” and “macho culture” at Blizzard were contrasted with a video (YouTube) from 2010 in which he and other Blizzard managers discussed the question of why female characters in World of Warcraft are highly sexualized be laughing. He presents himself more as part of a problem that is described as structural than as someone who knows how to solve it – at least from the outside world, he lacks the credibility that is urgently needed for a role as a fire extinguisher, given the seriousness of the allegations.
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NEWS: Blizzard & # 39; s head of HR, Jesse Meschuk, is also no longer at the company, Bloomberg has learned https://t.co/3m9EHejVxc
& mdash; Jason Schreier (@jasonschreier) August 3, 2021
Exactly this point should distinguish the replacement. Jen Oneal, a long-time Blizzard manager, and Mike Ybarra, who was only poached by Microsoft in November 2019, will take over the management of Blizzard. The press release attests to both of them “great character and integrity”.
But one word is missing: that of the president. While Mike Morhaime was still allowed to call himself CEO of the studio until he left in 2018, Brack was only “President”. His two successors won't even be that anymore. With this move, Blizzard is subordinated to its owner Activision much more strongly to the outside world; so the publisher has more control. PC Gamer suggests that this does not have to be a good thing due to the increasing weighting of financial aspects. The site traces Blizzard's increasing number of missteps that have severely damaged the studio's excellent reputation over the past three years.
More examples and criticism of the reaction
Meanwhile, IGN reports with the help of further examples about the conditions at Blizzard. They again suggest that the lawsuit has substance.
Meanwhile, Blizzard's attempts to master the crisis have met with criticism. The employees who organized the protest last week complained in another letter that none of their requests and requests had been answered. In addition, the consultation of the law firm WilmerHale is critical for various reasons. The firm has been exposed to a conflict of interest through previous work for Blizzard and has a history of discouraging employees from organizing and exercising their rights.
Investors are suing
In addition, Blizzard is faced with a class action lawsuit (PDF), reports Gamasutra. Blizzard is accused of having failed to point out the potential impact and importance of the regulatory investigation in several quarterly reports. The lawsuit is based on the Securities Exchange Act of 1934.
Since this investigation would have negative consequences for the business area, among other things due to stronger regulation, and thus negatively influence the share price , this risk should have been pointed out. According to the lawsuit, the management was aware of the alleged conditions and thus the likely outcome of the investigation. The statements in the quarterly reports were “false and misleading and/or at all times without a reasonable basis”, Blizzard had “artificially inflated” its share price.
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