Following a series of tweets from George Broussard, co-owner of 3D Realms, which indicated that Sony Online Entertainment would be undergoing layoffs and possible studio closures around its five locations today, Kotaku reports that a source "familiar with the matter" has confirmed the closures of SOE's Denver, Seattle and Tucson studios. Additionally, half of the Austin staff has been reportedly laid off, along with a "sizeable" number of workers at SOE's San Diego headquarters. In all, the layoffs are said to affect nearly one-third of SOE's total workforce.
Notably, SOE Seattle has been the lead development studio of The Agency, which had been slated to launch in the second half of the year (after a long delay). Neither SOE Denver nor Tucson has been working on anything as high profile as The Agency, though both have continued to operate a number of SOE titles, including Denver's Legends Of Norrath and other digital card games, and Tucson's PoxNora strategy game.U
Update: SOE has issued an official statement confirming the report and providing further details.
Reader Comments (26)
Posted: Mar 31st 2011 11:15AM doreo said
Does this mean that The Agency is cancelled? I don't believe I've heard any news about it in quite some time.
Posted: Mar 31st 2011 11:50AM jozanovic said
@doreo
My question exactly. Although earlier this morning, I did read on IGN about games that are probably not going to ever come out. The Agency was right there too.
http://games.ign.com/articles/995/995409p1.html
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My question exactly. Although earlier this morning, I did read on IGN about games that are probably not going to ever come out. The Agency was right there too.
http://games.ign.com/articles/995/995409p1.html
Posted: Mar 31st 2011 11:22AM MEGATOOL said
I don't get why game companies have close studios. Less people working means less games being made. Less games means less money for the company. It's not like the manufacturing industry where if people aren't buying cars, you have to do it to save money. People are always buying games. I guess the one positive thing about this happening in the game industry is that if you're talented enough, you can just go the indie route and create your own games.
Posted: Mar 31st 2011 11:37AM rpny said
@MEGATOOL Yes, people buy games, but not every game makes a profit. It doesn't make sense to have studios creating games, if those games aren't making a profit. Yeah people bought the game, but if you're not making money what's the point. It's a business, being profitable is important. I'm sure they analyzed the benefits of keeping the studios vs just taking the loss now.
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Posted: Mar 31st 2011 11:48AM LEONLEONLEON said
@MEGATOOL
But games take time to make. And what if the company goes in to the red during that making time? I highly doubt that anyone is going to want to work unpaid for several years, Or get in debt with loans.
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But games take time to make. And what if the company goes in to the red during that making time? I highly doubt that anyone is going to want to work unpaid for several years, Or get in debt with loans.
Posted: Mar 31st 2011 11:35AM Vanbierk said
I don't really see how layoffs of studios that aren't working on anything can come as a surprise...ever...if the money is better allocated somewhere else, they're going to do it. Although it is very sad that people lose their jobs over it, good luck to them in finding new work.
Posted: Mar 31st 2011 11:38AM Punkrawk Bbob said
I'm sure I'm in a minority, but this bums me out. Legends of Norrath is an incredibly fun CCG. I wonder if this will affect "EverQuest Next", as I was really looking forward to that. If that title catches the axe I believe I'm entirely done with MMOs, as WoW and WoW clones just don't do it for me.
Posted: Mar 31st 2011 11:43AM foxhound said
@Punkrawk Bbob
A couple friends and I used to play the NORRATH series on PS2 until a JAK X memory card failure kinda killed off the fun. Even though UNTOLD LEGENDS was a similarly fun game, it wasn't nearly as polished.
It sucks to hear about anyone losing their job - especially those in such a fond hobby of mine. I hope they find work soon enough, as talent should never be wasted. :\
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A couple friends and I used to play the NORRATH series on PS2 until a JAK X memory card failure kinda killed off the fun. Even though UNTOLD LEGENDS was a similarly fun game, it wasn't nearly as polished.
It sucks to hear about anyone losing their job - especially those in such a fond hobby of mine. I hope they find work soon enough, as talent should never be wasted. :\
Posted: Mar 31st 2011 11:48AM bargaingamer said
ps3 exclusive are not bring the money like they used to so it no surprise their a lot of studio closing. Hopefully ps3 exclusive for 2011/2012 will sell so they don't have to close anymore studios.
Posted: Mar 31st 2011 12:08PM aarontuyet said
HEY SONY! Quit spending all your resources on bells and whistles, and continue better focus more on 1st party, quality, long commitment games that bring in solid revenue and boost hardware sales.
Specifically thinking of cutting off funds for things like Home, Free Realms, underutilized PSN content, and Move games (thanks for the concept, but please focus on a seriously developed move game, and not this wiiware stuff).
Specifically thinking of cutting off funds for things like Home, Free Realms, underutilized PSN content, and Move games (thanks for the concept, but please focus on a seriously developed move game, and not this wiiware stuff).
Posted: Mar 31st 2011 12:48PM PointlessPuppies said
@aarontuyet
Interesting, considering how Sony's 1st/2nd party games are vastly superior to MS's, I really don't think they have an issue with spending too much on "bells and whistles".
Just so you know, Home is actually making a nice profit for Sony. It would make absolutely no sense to cut it off. And Free Realms was released literally 2 days ago. How is it that you magically know it's a money sink for Sony?
Man, these armchair analysts sure make my day funnier.
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Interesting, considering how Sony's 1st/2nd party games are vastly superior to MS's, I really don't think they have an issue with spending too much on "bells and whistles".
Just so you know, Home is actually making a nice profit for Sony. It would make absolutely no sense to cut it off. And Free Realms was released literally 2 days ago. How is it that you magically know it's a money sink for Sony?
Man, these armchair analysts sure make my day funnier.
Posted: Mar 31st 2011 2:41PM aarontuyet said
@PointlessPuppies
I disagree on both regards footstool analyst.
Agreed Home is starting to turn a profit, with publishers renting space and microtransactions... but marginal cost analysis will tell you the dump of cash and resources they put into it from the beginning could have easily been funneled into a first party game, which you admittedly agree generally do well and are quality.
Free Realms which was developed by SOE and was recently released on PS3, but it was released for PC back in 2009, which means it has been in development for much prior to that. I truly do not think they will ever turn a profit on it.
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I disagree on both regards footstool analyst.
Agreed Home is starting to turn a profit, with publishers renting space and microtransactions... but marginal cost analysis will tell you the dump of cash and resources they put into it from the beginning could have easily been funneled into a first party game, which you admittedly agree generally do well and are quality.
Free Realms which was developed by SOE and was recently released on PS3, but it was released for PC back in 2009, which means it has been in development for much prior to that. I truly do not think they will ever turn a profit on it.
Posted: Mar 31st 2011 12:20PM Pure Black World Tendency said
I've got a feeling that E3 will bring us nothing but more sequels. I'd really like to see Sony's studios get a chance at making new IP's.*
*Except for Naughty Dog, I need more Uncharted!
*Except for Naughty Dog, I need more Uncharted!
Posted: Mar 31st 2011 12:21PM Squalls Lionheart said
i hate hearing about layoffs
Posted: Mar 31st 2011 12:52PM Godmars said
Really wish they'd just swallow their pride and cancel the thing.
Posted: Mar 31st 2011 1:14PM Gaddes said
Great, even more competition for work now... :\ I wonder when studios will finally layoff (heh) with the firing kick.
Posted: Mar 31st 2011 1:36PM Triskelion said
Sony probably wanted to reduce Smedley's salary but instead he told them he would close a couple of studios.
Posted: Mar 31st 2011 2:40PM EvoHelix said
What about Planetside 2? WHAT ABOUT PLANETSIDE 2?!
Posted: Mar 31st 2011 2:52PM asanab76 said
I was literally about to start looking for work with a game studio in Denver... Unfortunately SOE, Real Time Worlds, and NetDevil have pretty much ceased operations....
So much for that awesome game career....
So much for that awesome game career....
Posted: Mar 31st 2011 4:15PM Punkrawk Bbob said
@asanab76
You can't expect to get hired into work with these times, you have to make your own. People need to stop bitching about studios folding and start making some. Like Hogrocket coming together instead of pouting about how bad they had it.
Reply
You can't expect to get hired into work with these times, you have to make your own. People need to stop bitching about studios folding and start making some. Like Hogrocket coming together instead of pouting about how bad they had it.
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