The annual Xbox bloodbath could derail Activision Blizzard King’s momentum once again—even though the opposite is needed.

Amid studio sales and massive layoffs, a storm swept through numerous internal Xbox studios. However, Activision Blizzard has largely weathered the situation unscathed this time, perhaps because it is currently the company’s main source of revenue. Call of Duty continues to generate revenue even in weaker years, and Blizzard has also been performing well recently thanks to the resurgence of its key IPs, such as Overwatch, Warcraft, and Diablo. Bloomberg editor Jason Schreier confirmed this in his latest video, in which he also hinted that the company is preparing a slew of projects, including the rumored StarCraft shooter. Hopefully, this won’t end up like StarCraft: Ghost did back in the day!

“Right now, Blizzard is a microcosm for many people at Xbox. But Blizzard is in a really interesting place. They have managed to rebuild momentum for many of their franchises that were not doing well, especially Overwatch, which is now in a much better place than it was one or two years ago. World of Warcraft has also been doing quite well, with millions of subscribers and tons of revenue. Diablo has also been doing quite well. They may not have hit the exact numbers they wanted for Diablo IV and its expansions, but it’s still a successful game that makes money for them.

There are also tons of new projects in the works. There’s new content in Diablo and other projects in development. As I mentioned in Play Nice, a StarCraft shooter is in development. A lot of cool things are happening at Blizzard right now. Now, people have to continue working on these projects without knowing if they’ll still have jobs in three months. It’s a really awful and cruel position to be in,” Schreier said.

So far, Blizzard hasn’t been affected by the layoffs, but another major wave is expected later this year. Given Blizzard’s current success, it doesn’t make much sense for them to be hit so hard, especially since BlizzCon is coming up in a few months, when they might announce some of these projects. However, we’ve already seen Xbox shut down successful studios, so this wouldn’t be unprecedented.

Source: WCCFTech