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Krome Studios lays off 'undisclosed number' of staff

by David Hinkle { Nov 18th 2009 at 11:15AM }

It's always sad when our layoffs tag claims another victim and, today, Australia-based Krome Studios is the latest. The developer responsible for the PS2, PSP, Wii and DS ports of Star Wars: The Force Unleashed, and who recently wrapped up development on Star Wars: The Clone Wars - Republic Heroes, has been forced to release an "undisclosed number" of its staff, Industry Gamers reports.

Krome CEO Robert Walsh attributes the action to declining game sales industry-wide and says the company has "worked really hard to minimize the impact" on its staff. Walsh does give some of these ex-employees hope, stating that he's currently "pursuing several business opportunities which, if secured, will enable Krome to reemploy some of the staff given notice."

Pandemic closes physical doors, brand lives on

by Justin McElroy { Nov 17th 2009 at 3:12PM }

We've got a little more perspective on the closing of Pandemic, which was rumored earlier today. Though the studio will physically close, and the majority of its staff (some 200 people) will be sacked, the brand and IPs (like Mercenaries, Star Wars: Battlefront and The Saboteur) will continue, EA representative Holly Rockwood told Joystiq. Founders Josh Resnick, Andrew Goldman, Greg Borrud will leave the company.

A lucky few from Pandemic will continue the studio's work under the EALA roof in Playa Vista, reporting to GM Sean Decker. Here's hoping that those who aren't as fortunate won't have to go too long without work.

Rumor: Pandemic Studios to close its doors today

by Justin McElroy { Nov 17th 2009 at 10:30AM }

Pandemic Studios, the house behind games like Mercenaries and the forthcoming The Saboteur will be shuttered by EA today, according to sources speaking to Kotaku. Reportedly, the developer's 200-some staffers will be informed at 2 p.m. EST that all but a few (who will be integrated into other EA teams) are to be let go. Pandemic had previously been rumored as one of the studios that would be hit hardest by EA's 1,500-member staff reduction. Current Pandemic projects will reportedly shift to EA's Montreal branch, which handles Army of Two.

This story, that of a developer who puts their all into a game only to be rewarded with a firing upon its completion, is staring to become alarmingly familiar. Sure, we understand the logistics, but that's cold comfort to those Pandemic employees who may have to start tomorrow off by looking for work. We'll keep after EA for official word.

Dyack predicts more publisher consolidation

by Justin McElroy { Nov 16th 2009 at 9:00AM }

Publishers have been disappearing faster than Ludwig's snickerdoodles at Joystiq's Mid-Autumn Tea Social lately, both through bankruptcy or (for the lucky ones) being purchased. Designer and industry soothsayer Denis Dyack told Gaming Union he expects that to continue, comparing the shift to that of Hollywood which went from hundreds of individual studios to the six major houses we know today. Dyack expects the role of publishers to change as well, though he's less specific on exactly what that means.

Boy, one console and now fewer publishers? Sounds like Denis has been listening to too much They Might Be Giants.

Rumor: EA cuts targeting Maxis, Pandemic, C&C staff

by Justin McElroy { Nov 11th 2009 at 9:10AM }

We already knew the announced cuts coming to EA's workforce (totaling some 1,500 jobs lost) would be deep but, if a recent Kotaku report is to be believed, we're starting to get an idea of just where the gashes will come. For starters, the site says it's been told by unnamed sources that almost every member of the Command and Conquer 4 team would be let go after the game's completion, which is the very last Halo Wars feature we wanted to see copied in C&C.

More cuts are rumored to be hitting Pandemic (the house behind Mercenaries and The Saboteur) and Maxis (yeah, again). We'll keep reaching out to EA to get the official story. In the meantime, our thoughts are with those affected.

Losses, layoffs in EA's Q2 earnings report

by JC Fletcher { Nov 9th 2009 at 5:50PM }

EA announced a net loss of $391 million in its Q2 2010, which ended September 2009. The losses have increased from last year's $310 million. In addition, sales, at $788 million, are down $106 million in Q2 2010 from the same period last year. EA CEO John Riccitiello remains positive about EA's outlook, explaining, "EA is performing well, with quality, sales and segment share up so far this year." CFO Eric Brown echoed Riccitiello with his own confusingly half-upbeat statement, saying "We met our second quarter expectations and delivered a record quarter for revenue. Today we are announcing a significant cut in our operating expenses and the acquisition of a leader in social games, Playfish."

Those cuts, revealed earlier today, will result in the loss of around 1,500 jobs by March 31, 2010. Last year's restructuring planned only 1,000 layoffs. EA estimates that the restructuring plan will save around $100 million after about $130 - 150 million of restructuring costs. We hope that, this time, the company arrives at a structure that works.

EA laying off 1,500 in new round of restructuring

by JC Fletcher { Nov 9th 2009 at 3:40PM }

We know at least four portions of EA that probably aren't thrilled about the Playfish acquisition. Gamasutra reports that significant layoffs have taken place at EA's Tiburon, Redwood Shores, Black Box, and Mythic divisions. Gamasutra suggests that the layoffs exceed the scope of EA's normal annual layoffs. We're attempting to verify the actual percentages with EA.

According to a tweet by Katherine Pitta, "Mythic Entertainment, responsible for Warhammer Online, just laid off 80 people, about 40% of it's employees." Former EA employee Eron Garcia estimated "HUGE chunks of EA" have been let go. Mythic has been subject to layoffs in the past, as has Need for Speed and Skate developer Black Box, which already had its studio closed last year as part of another widespread round of layoffs. Best of luck to everyone affected by the layoffs!

[Update: Approximately 1,500 people have been or will be laid off as a result of this year's cuts, EA reports in its earnings statement. Last year's "major" restructuring resulted in the loss of about 1,000 jobs.]

Microsoft's layoffs conclude early, over 5,000 let go

by Ben Gilbert { Nov 4th 2009 at 3:19PM }

With this morning's confirmation from Microsoft that another 800 people have been let go, the layoffs that began all the way back in January of this year have completed. Affecting everyone from Games for Windows Live to Rare to a quarter of the Massive team, we're sure that the folks still working at The Big M are glad that pendulum blade has stopped swinging above their heads. "We are eliminating around 800 positions ... and have completed our reduction plan sooner than we had anticipated," the company said in a statement to PaidContent.

Unfortunately, as with any business in a down economy, the statement also notes that "continuing to manage our businesses closely ... can mean additional headcount adjustments." Considering a company representative already told TechFlash that more than the announced 5,000 number had been let go over the last 10 months (though no specifics were detailed), we're wondering just how many more people will be affected by "headcount adjustments." We contacted Microsoft for more information, but were given the same statement that PaidContent received. It's been reprinted in full after the break.

Continued →

Rumor: PAIN developer Idol Minds lays off more than half of staff

by Andrew Yoon { Oct 21st 2009 at 4:35PM }

Idol Minds, known best for the PS3 downloadable game PAIN, has laid off more than half of its staff, according to a report by Kotaku. The original team of 46 has been reduced to a mere 20 through a series of layoffs, the latest of which affected seventeen developers.

Kotaku's sources point to budget cuts from long-time publishing partner Sony Computer Entertainment. However, it's hard to ignore the irony of the team's namesake: other than a few expansion packs to PAIN, no major releases or game announcements have come out of the studio since 2007. What this means for the future of the PAIN franchise is unclear for now. Calls to both Idol Minds and SCEA were not returned.

Romero remains head of Slipgate following layoffs

by James Ransom-Wiley { Oct 21st 2009 at 12:00PM }

Parent publisher Gazillion Entertainment has confirmed that John Romero will remain with Slipgate Ironworks following a round of layoffs that struck the development studio this month, reports Joystiq sister site Big Download. As previously detailed, a smaller staff will be left intact to complete an unnamed MMO project, which has undergone a change in "format," according to Gazillion.

Co-founded by Romero in 2005, Slipgate once boasted a staff of about 80 veteran developers -- now reportedly reduced to around 30 -- that had combined to work on 16 MMO titles for other studios. Their seventeenth and first MMO for Slipgate, however, remains an elusive undertaking.

Report: Transmission Games ceases all communications, shuts down

by Alexander Sliwinski { Oct 21st 2009 at 10:30AM }

Heroes Over Europe and Ashes Cricket 2009 developer Transmission Games has apparently closed. Tsumea, along with several other Australia-based outlets, report the Melbourne developer just couldn't survive its very bad year. Allegedly, payments from failed publisher Red Mile never materialized and contracts, concerning a now-canceled Red Tails game for LucasArts, weren't properly concluded.

The news of the shutdown comes weeks after the company laid off 30 of its staff. We'll update if Transmission offers an official statement.

[Via Develop]

Romero's Slipgate Ironworks cuts staff, work continues

by Alexander Sliwinski { Oct 19th 2009 at 11:22AM }

Publisher Gazillion Entertainment has confirmed layoffs at John Romero's studio, Slipgate Ironworks, which is currently working on an unnamed MMO. Although the publisher wouldn't reveal the number let go, Kotaku reports that former staffers estimate around 50 people are looking for a new place of work.

A statement from Gazillion obtained by Gamasutra claims that the company decided to "change the format" of the Slipgate Ironworks project to reach the "widest possible audience." The game will now launch with a "smaller core team." Gazillion is also publishing the delayed Jumpgate Evolutions and 2012's Marvel Universe MMO.

Source -- Gazillion Confirms Layoffs At Romero-Led MMO Dev Slipgate Ironworks [Gamasutra]
Source -- Romero's Slipgate Ironworks Hammered Down, MMO Project Still On [Kotaku]

Activision closes 'Web of Shadows' dev Shaba [update]

by Alexander Sliwinski { Oct 8th 2009 at 10:01AM }

Activision's Shaba Games, which most recently developed Spider-man: Web of Shadows, has allegedly been shuttered. Kotaku reports that sources with knowledge claim the studio closed yesterday; attributing the corporate downsizing to sluggish sales of Guitar Hero 5.

Approximately 30 employees were reportedly laid off at Shaba, which is roughly half the workforce Shaba claims to have -- an eerily similar fate that apparently befell Activision's 7 Studios earlier this week. We're currently following up and will update with any new information.

Update: Activision confirmed the studio's closure with this statement: "Activision continually evaluates the resources at our studio properties to ensure that they are properly matched to our product slate and overall strategic goals. As part of this process, we recently made the difficult but necessary decision to close Shaba Studios. We are grateful for the studio's contributions and wish this talented team success in their future endeavors."

Gallery: Spider-Man: Web of Shadows

Report: Activision reduces 7 Studios by half

by James Ransom-Wiley { Oct 6th 2009 at 6:58PM }

"7" is not an easily divided number. Nevertheless, Kotaku reports that Activision has cut its 7 Studios by half, laying off an estimated 30 staffers from the development outfit. The remainder of the one-time developer of Scratch: The Ultimate DJ (turned defendant-cum-plaintiff) will be put to work on future music games. "As a part of this realignment, the studio is reducing its workforce to better reflect Activision's upcoming slate of music-based games," an Activision representative told Kotaku.

We've contacted 7 Studios for comment on the reported workforce reduction. Stay tuned.

Report: Transmission Games ceases communications with more than 20 staff

by Randy Nelson { Oct 2nd 2009 at 12:00AM }

Melbourne, Australia based Transmission Games (formerly IR Gurus) has laid off more than 20 members of its development staff, Gamasutra reports. The studio, which created the WWII air combat games Heroes of the Pacific and the just-released Heroes Over Europe for Ubisoft is said to have made the cuts today, according to the site's sources.

The developer has not publicly addressed the layoffs or its reasoning behind them, but its latest title has met with mediocre reviews averaging a full 10 points lower than its previous game in aggregate scores. We'll keep our eyes on the studio in case of any executive bail outs.