The closure of Toys for Bob's studio in Novato, California has left the future of the company uncertain. This decision was part of the fallout from Xbox's acquisition of Activision Blizzard, which led to approximately 1900 layoffs.

According to reports from the San Francisco Chronicle, 86 workers were laid off from the studio, which is best known for developing popular games such as Crash Bandicoot, Spyro, and Skylanders. Additionally, Call of Duty developer Sledgehammer Games also experienced layoffs, with some 76 employees affected by the closures. These details were discovered through official state filings.

The layoffs at Activision Blizzard were announced at the end of January, as Xbox sought to restructure the company after its $69 billion acquisition. As a result, former Blizzard president Mike Ybarra departed from the company, and a survival game in development at Blizzard was canceled.