Blizzard president Johanna Faries sat down with Bloomberg on December 19, 2025, for a candid discussion about transforming one of gaming’s most iconic but troubled studios. Nearly two years into the job, Faries opened up about overhauling Blizzard’s notoriously problematic bonus system, fixing workplace culture that drove employees to unionize, and why 2026 will be the studio’s biggest year in recent memory with major releases across World of Warcraft, Diablo, and more.
The interview marks a rare moment of transparency from a gaming executive willing to discuss compensation structures publicly. For a company that spent years embroiled in workplace scandals, lawsuits, and employee walkouts, Faries’ willingness to address these issues head-on signals a genuine attempt to turn the page on Blizzard’s darkest chapter.
Fixing the Bonus System That Broke Trust
Under Faries, Blizzard completely overhauled its profit-sharing bonus structure that had become a source of massive employee frustration and resentment. The old system tied bonuses directly to individual game performance rather than company-wide success, creating internal competition and punishing developers working on struggling titles through no fault of their own.
The breaking point came in early 2024 when Overwatch 2 developers received zero percent of their bonus targets despite working grueling hours. Meanwhile, teams on more commercially successful games like Diablo IV and World of Warcraft received full payouts. This franchise-specific approach, implemented in 2023 under previous leadership, contradicted decades of Blizzard philosophy about shared success.
Former Blizzard presidents Mike Morhaime and J. Allen Brack had fought to keep bonuses company-wide, arguing that tying compensation to specific game performance would discourage experimentation and innovation. Everyone would want to work on established franchises rather than risk new ideas. But Activision’s leadership under Bobby Kotick pushed for the change, believing those behind lucrative products deserved greater rewards.
The new system under Faries brings transparency that was previously missing. Employees now understand how bonuses are calculated, what targets need to be hit, and how their work contributes to those goals. While specific details remain internal, the focus has shifted back toward rewarding studio-wide collaboration rather than pitting teams against each other in a zero-sum game for bonus money.
This matters because bonuses represent a significant portion of Blizzard compensation packages. The company historically paid lower base salaries than competitors like Riot Games, promising to make up the difference through profit-sharing from hits like World of Warcraft. When those bonuses disappeared or got slashed arbitrarily, employees felt betrayed by a fundamental part of their employment deal.
Rebuilding Culture After Scandal
Faries inherited a workplace culture in crisis when she took over in February 2024. California’s Department of Fair Employment and Housing had sued Activision Blizzard in 2021 over widespread sexual harassment and discrimination, describing a frat-boy culture where women faced constant abuse. Employee walkouts, internal Slack channel explosions, and high-profile departures followed as the scope of misconduct became public.
The company implemented mandatory return-to-office policies in 2023 that further angered remote workers hired during the pandemic, forcing relocations or job losses. A controversial stack-ranking system required managers to rate roughly 5 percent of employees as underperforming regardless of actual performance, cutting their bonuses and limiting future raises. One developer, Brian Birmingham, was fired for publicly protesting this ranking policy.
Three major Blizzard teams have unionized since Microsoft’s acquisition: World of Warcraft, Overwatch, and most recently the Diablo team in August 2025. Workers cited concerns about layoffs, remote work flexibility, AI encroachment in development, and the passion tax, where companies exploit developer love for games to justify worse working conditions than comparable tech roles.
Faries acknowledges these challenges in interviews, emphasizing her focus on creating honest, strategic conversations across all levels. She wants to flatten the hierarchy that previously let certain individuals become untouchable despite problematic behavior. The goal is creating space where the best developers can have tough conversations without fear of retaliation from management protecting legacy figures.
In a March 2025 Windows Central interview, Faries described her approach as hyper-learning and hyper-agile, encouraging teams to frankly discuss what worked and what failed. This represents a dramatic shift from the management-by-chaos style that defined early Blizzard, where talented individuals received excessive trust that created leeway for inappropriate behavior and poor planning.
2026: The Biggest Year Yet
Faries promises 2026 will be Blizzard’s most significant year in recent memory, with major releases and announcements across all franchises. World of Warcraft’s Midnight expansion launches March 3, 2026, continuing the momentum from The War Within’s successful launch. Diablo IV’s Lord of Hatred expansion follows on April 28, 2026, expanding the action-RPG with new story content and endgame systems.
Overwatch 2 developers say the game’s boldest ideas will come to life in 2026, marking the franchise’s 10th anniversary. The team plans to lean further into storytelling and character development with new experiences they’re not ready to detail yet. After a rough 2024 where the game struggled financially, the team believes 2025’s improvements positioned them for a strong comeback.
BlizzCon returns in September 2026 after being absent since 2023. The convention will showcase major announcements and reveals that Faries describes as very exciting. The timing coincides with Blizzard’s 35th anniversary, suggesting the company plans something special beyond typical expansion reveals and cinematics.
Beyond confirmed releases, speculation runs rampant about potential surprises. StarCraft has been dormant for years despite passionate fan demands for continuation. Warcraft 3: Reforged’s disastrous launch left that franchise in limbo. New intellectual properties remain possible, though Blizzard’s conservative approach under Microsoft ownership makes risky bets less likely than iterating on proven franchises.
Faries told Variety the internal teams are mobilizing for massive initiatives across all major franchises with tremendous pride in what’s coming forward. The goal is modernizing Blizzard’s iconic portfolio while respecting the legacy that built the company. This isn’t maintenance, it’s aggressive expansion for the next decade of gaming.
Can Blizzard Regain Trust?
The real question facing Faries is whether words translate to meaningful change. Blizzard has announced cultural reforms before, only to see them collapse under pressure from Activision leadership or executives unwilling to truly address systemic problems. Bobby Kotick announced zero-tolerance harassment policies in 2021, then left with a reported $400 million golden parachute after Microsoft’s acquisition despite overseeing the company during its worst scandals.
Employee unionization suggests workers remain skeptical that management will protect their interests without collective bargaining power forcing the issue. The fact that three major teams felt compelled to organize despite Microsoft’s supposed neutrality on unions indicates deeper trust problems that bonus transparency alone won’t fix.
Reddit discussions about Faries’ interview show mixed reactions. Some appreciate the rare transparency about compensation structures, while others point out that executives discussing bonus reforms rings hollow when those same executives earn millions regardless of company performance. One comment noted that when former president Mike Ybarra told employees executives also felt bonus cuts, the statement was technically true but meaningless given their vastly higher base salaries and total compensation.
The proof will arrive through 2026 releases and how Blizzard treats employees when inevitable crunch periods hit. Will the company maintain reasonable working hours and respect work-life balance, or will old habits resurface when deadlines approach? Will bonus payouts reflect the promised transparency, or will arbitrary decisions undermine the new system’s credibility?
Microsoft’s Influence
Faries operates under Microsoft’s Xbox division, which completed the $68.7 billion Activision Blizzard acquisition in October 2023. The transition brought layoffs, with 1,900 positions cut across Xbox, Activision Blizzard, and ZeniMax teams in January 2024. Faries started her role just weeks after these cuts, inheriting an organization reeling from job losses and leadership turnover.
Microsoft’s track record with acquired studios is mixed. Some developers praise increased resources and reduced corporate pressure, while others miss the independence and creative freedom they previously enjoyed. For Blizzard specifically, escaping Bobby Kotick’s influence represents an unambiguous positive, but whether Microsoft’s corporate structure allows the risk-taking that defined classic Blizzard remains unclear.
Xbox leadership including Phil Spencer has emphasized maintaining studio cultures and creative autonomy while treating employees with dignity and respect. Whether that philosophy survives budget pressures, underwhelming game performance, or executive turnover will determine if Microsoft ownership truly differs from the Activision era that nearly destroyed Blizzard’s reputation.
Frequently Asked Questions
Who is Johanna Faries?
Johanna Faries is the current president of Blizzard Entertainment, taking the role in February 2024. She previously worked as Call of Duty franchise general manager at Activision and spent 12 years with the National Football League before entering gaming. She’s the first Blizzard president since Microsoft completed its Activision Blizzard acquisition.
What changed with Blizzard’s bonus system?
Blizzard overhauled its profit-sharing bonus structure under Faries to provide more transparency about how bonuses are calculated and what targets employees need to hit. The previous system tied bonuses directly to individual game performance, meaning Overwatch 2 developers received zero bonuses while Diablo and WoW teams got full payouts, creating internal resentment and competition.
Why did Blizzard teams unionize?
World of Warcraft, Overwatch, and Diablo teams unionized with the Communications Workers of America citing concerns about layoffs, remote work flexibility, AI encroachment, and what workers call the passion tax where companies exploit developer love for games to justify worse working conditions than comparable tech roles. The January 2024 layoffs and mandatory return-to-office policies were major catalysts.
What games is Blizzard releasing in 2026?
Confirmed 2026 releases include World of Warcraft: Midnight expansion on March 3 and Diablo IV: Lord of Hatred expansion on April 28. Overwatch 2 promises major updates tied to the franchise’s 10th anniversary. BlizzCon returns in September 2026 with major announcements for Blizzard’s 35th anniversary, though specific reveals remain under wraps.
What was wrong with Blizzard’s workplace culture?
California sued Activision Blizzard in 2021 over widespread sexual harassment and discrimination, describing a frat-boy culture where women faced constant abuse. Issues included problematic bonus structures, stack-ranking systems that arbitrarily punished employees, mandatory return-to-office policies, mass layoffs, and a management-by-chaos approach that let certain individuals become untouchable despite inappropriate behavior.
How is Faries different from previous Blizzard presidents?
Faries emphasizes transparency, flatter hierarchies, and honest cross-functional conversations rather than the hero-worship culture that let problematic individuals escape accountability. She’s publicly discussing compensation structures and cultural reforms in ways previous leadership avoided. Whether these differences translate to lasting change remains to be seen as 2026 releases test the reformed culture.
Why is 2026 important for Blizzard?
2026 marks Blizzard’s 35th anniversary and Overwatch’s 10th anniversary. The company is releasing major expansions for its biggest franchises, bringing back BlizzCon after three years, and positioning itself for what Faries calls the biggest year yet. It’s also the first full year where Faries’ cultural reforms and bonus changes will be tested under pressure of major launches.
Actions Over Words
Johanna Faries is saying the right things about transparency, employee treatment, and respecting Blizzard’s legacy while modernizing for the future. The Bloomberg interview reveals a leader willing to discuss uncomfortable topics that gaming executives typically avoid, which itself represents progress for an industry allergic to compensation transparency and honest cultural self-assessment.
But Blizzard employees have heard promises before, only to watch them evaporate when quarterly earnings calls demanded sacrifices. The real test comes through 2026 as World of Warcraft: Midnight and Diablo IV: Lord of Hatred ship. Will crunch remain reasonable? Will bonuses reflect promised transparency? Will the cultural reforms survive deadline pressure and budget constraints? The gaming community will be watching closely, and three unionized teams now have collective bargaining power to hold management accountable if words don’t match actions. For Blizzard, 2026 isn’t just about releasing games. It’s about proving whether the company can reclaim its soul after nearly losing it completely.