OpinionStory

Overwatch 2 was a big mistake - Overwatch creator explains | Jeff Kaplan and Lex Fridman

Lex Clips

Jeff Kaplan discusses how Overwatch 2's development derailed due to competing pressures from internal dev team desires for PvE content, executive demands for specific release dates, and massive financial commitments to Overwatch League that consumed resources. He ultimately left Blizzard after being pressured by the CFO to generate specific recurring revenue targets, leading him to question how creative game development gets compromised by financial ambitions.

Summary

Jeff Kaplan explains that Overwatch 2 was initially conceived in 2015 as a cooperative PvE shooter experience, before Overwatch 1 even shipped in 2016. The project had two sources of genuine pressure: first, team members who loved the Overwatch universe but wanted to experience it in a PvE setting rather than competitive PvP; second, executive pressure to meet release dates that were carelessly included in early PowerPoint presentations to corporate leadership.

During Overwatch 1's massive success in 2016-2017, the team experimented with live events like the Summer Games and Halloween events, which were extremely popular with fans. However, this momentum and ability to "ride the wave" was disrupted by two major factors. The internal coalition pushed for Overwatch 2 development instead of continuing live events, and more significantly, Overwatch League became a massive distraction. While OWL's original intent was noble—establishing regional teams with player protections and minimum salaries to professionalize esports—it was oversold to billionaire investors with unrealistic projections (comparing it to NFL revenue potential).

This financial commitment to OWL created cascading problems. Teams invested in the league demanded returns, requiring massive in-game integrations (Twitch streaming features, team skins, technical implementations) that consumed development resources. The business model of in-person events and merchandise fell apart quickly, forcing everyone to default to extracting maximum monetization from the live game itself. This created relentless pressure on the Overwatch team to generate revenue, pulling resources away from both live service care and Overwatch 2 development.

The breaking point came when Kaplan was called into the CFO's office and given an ultimatum: Overwatch must generate a specific recurring revenue target annually, or "a thousand people" would be laid off and "that's gonna be on you." This moment crystallized for Kaplan how creative game development had been subordinated to financial targets. He reflects that classic Blizzard successes like World of Warcraft were created by small creative teams without CFOs dictating outcomes, and that bringing financial pressure into creative work fundamentally breaks the process. He ultimately resigned, experiencing significant grief over leaving the company he had planned to retire from.

Key Insights

  • Kaplan identifies placing casual PowerPoint dates in front of corporate executives as a critical failure point, saying executives treat presentation slides 'like you might as well etch it in stone and come down from the mountain on it,' creating artificial deadlines that drive flawed long-term decisions
  • Kaplan argues that Overwatch 1's massive wave of success in 2016-2017 required riding it with more live events, but pressure to begin Overwatch 2 development meant the team ignored the fundamental principle that 'most games fall off the back of the wave' and squandered a rare opportunity
  • Overwatch League's downfall stemmed from over-marketing the league to investors with unsustainable promises (comparing potential revenue to the NFL), creating a 'house of cards waiting to fall' when actual in-person event and merchandise revenue couldn't meet those projections
  • Kaplan was ultimatum'd by the CFO with a specific recurring revenue target for Overwatch, with the threat that failing to meet it would result in laying off a thousand employees with responsibility placed on Kaplan, which he describes as 'the biggest fuck you moment' in his career
  • Kaplan contrasts classic Blizzard successes like World of Warcraft—created by small creative teams of 'weirdos' without CFO involvement—to the financial-machine approach that destroyed Overwatch's trajectory, arguing creative leadership must run creative projects or the work becomes corrupted

Topics

Overwatch 2 PvE development historyExecutive pressure and unrealistic commitmentsLive service events and 'riding the wave'Overwatch League creation and financial overreachResource allocation conflictsFinancial pressure vs creative autonomyJeff Kaplan's departure from BlizzardGame industry business model problems

Transcript

[0:02] - So even though you were not thinking about it Overwatch ended up being a gigantic success. So did you start thinking about, in this framework of crawl, walk, run, about the walk, the PvE piece? - Yes. So the PvE piece was what Overwatch 2 was supposed to be. And I don't know if people know this or not, but we [0:33] started working on Overwatch 2 in 2015. - ♪ Over- ♪ - So, Overwatch 1 didn't ship until 2016. So before Overwatch... And it wasn't like work in earnest. It was like pitching the game. Um, I remember I spent a lot of time... It was myself, Chris Metzen, and Michael Chu sort of brainstorming a…

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