EA lays off 10% of its work force - 1000 jobs lost - fewer original IP games? - by EvaUnit02
EvaUnit02 on 26/12/2008 at 03:55
(
http://www.gamespot.com/news/6202573.html)
Quote:
The day before Halloween, Electronic Arts spooked its staff by announcing it was laying off 6 percent of its workforce. Last week, it alarmed analysts by announcing--without revealing any specifics--that its annual earnings would fall below expectations. As a result, it was expanding its layoffs and canceling future projects.
Today, the company announced an expanded restructuring that will see EA increase layoffs to include 10 percent of its worldwide workforce. The 1,000 pink slips will be sent out by March 31, 2009, and will encompass the "consolidation or closure of at least nine studio and publishing locations," according to EA.
The restructuring will both cost and save money. After incurring charges of $55 million to $65 million as a result of severance packages and other reorganization-related expenses, EA anticipates an annual savings of $120 million.
Analysts blamed EA's troubles on the underperformance of several games, such as Mirror's Edge, Dead Space, and Need for Speed Undercover. Little surprise, then, that one affected location is Undercover developer EA Black Box, which will be closing its office facilities. (In an ironic footnote, Black Box's official site still bears the tag line "Growth...and lots of it!") The staff of the Vancouver-based shop, which is currently working on Skate 2, will be relocated to EA Canada's offices in the nearby suburb of Burnaby. However, an EA representative told GameSpot that the studio name will remain.
"This does not mean that the Black Box studio is closing," said the rep. "The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility."
EA said that Black Box's expected move date is June 2009. The rep also said that the studio's games would follow as well, but declined to comment if any were being considered for cancellation. "[We've made] no announcements regarding franchises," stated the rep.
In the initial news release, EA also issued the following blanket statement outlining how it will examine each of its series' viability: "EA is implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."
Reading between the lines, more Skate sequels are likely, but not so for Mirror's Edge and Dead Space.
There's the popular opinion that NFS: Undercover sucked, so meh. I haven't cared about that series since it became about EXTREME ILLEGAL RICER STREET RACING. Most Wanted was pretty good though.
EDIT:
It may not be as grim as we thought.
(
http://www.gamespot.com/news/6202129.html)
Quote:
Riccitiello declined to provide specific figures on any given game's performance. He did express satisfaction over the new franchises Dead Space and Warhammer Online, saying of the latter that "we expect [it] to continue to perform very, very well." Riccitiello also addressed DICE's first-person action adventure game Mirror's Edge, saying that while the overall quality met expectations, the publisher plans to "take a look" at its franchise potential.
I hope that we do see more of the Dead Space and Mirror's Edge franchises.
Fafhrd on 26/12/2008 at 05:11
Sales of the PC version of Mirror's Edge (and the DLC pack) are likely to be the decision maker as far as franchise versus sequel. I can't see them NOT giving DICE at least one more go with it.
CCCToad on 26/12/2008 at 07:30
Quote:
Mirror's Edge, saying that while the overall quality met expectations, the publisher plans to "take a look" at its franchise potential.
Thats the problem right there: the game was designed not as a self-standing, complete product, but as part of a franchise and suffered for it(particularly in the storytelling aspect).
Aja on 26/12/2008 at 20:10
It also had a fairly unengaging story though. I imagine that'll be one of the things they 'examine' for future sequels.
Jason Moyer on 26/12/2008 at 21:31
What does making sequels have to do with original IP games? It's not really an original IP if it's the second game in a series is it? Why would Dead Space 2 be more of an original IP than the Sims 3?
Fafhrd on 26/12/2008 at 22:58
Because Dead Space was an IP that was introduced this year, instead of nearly ten years ago (and based on an even older IP).
Jason Moyer on 27/12/2008 at 02:40
Ah ok. So being a sequel factory is ok as long as the original games are still fresh? Awesome.
As far as original IPs go, have they announced anything for this year besides Brutal Legend?
EvaUnit02 on 27/12/2008 at 04:05
Quote Posted by Jason Moyer
As far as original IPs go, have they announced anything for this year besides Brutal Legend?
Dante's Inferno.
CCCToad on 27/12/2008 at 04:55
Quote Posted by Aja
It also had a fairly unengaging story though. I imagine that'll be one of the things they 'examine' for future sequels.
The reason it had an unengaging story is because it was not written to have a complete story, but instead to set up sequels.