Back in August, MOP’s Chris covered some troubling news coming from Bloomberg about Dreamhaven, the publishing outfit that Mike Morhaime founded after he departed Blizzard. According to an internal memo from the studio, its thus-far published titles, particularly Wildgate and Sunderfolk, had sold poorly (130K and 62K units, respectively), driving Morhaime to tell workers that “monthly expenses are outpacing revenue” and that the studio needed to be “urgently reducing costs” to ensure Dreamhaven’s survival.

Well, there’s only a few ways to reduce costs, and now we know Morhaime has gone the layoff route.

“We made the hard decision to reduce the size of our company, with the primary impact on our Publishing group,” he wrote on Linkedin this week. “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 also acknowledges the state of the industry and says Dreamhaven is supporting affected staff with severance package and transition resources.

It’s extra sad because our own previews of Lynked and Wildgate were good; the games are cute and fun with lots of potential – just not lots of players.

“Looking ahead, our mission remains unchanged: bringing players together through positive and meaningful experiences. Wildgate, Sunderfolk, Lynked, and Mechabellum each reflect that vision, and we are committed to supporting these games and the communities forming around them. To everyone who continues to support us – thank you. While today’s news is hard, I remain optimistic about Dreamhaven’s future and the experiences still to come.”

We don’t know how many people are impacted here, but a Dreamhaven rep did reiterate to PC Gamer that the layoffs were to the Dreamhaven publishing group and that “ongoing development of Wildgate, Sunderfolk, and other projects is not affected.” Our condolences to everyone involved.