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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.

Funcom confirms layoffs and Secret World delay, Age of Conan not affected

by Griffin McElroy { Sep 30th 2009 at 11:50AM }

We contacted Age of Conan developer Funcom yesterday after reports from Norwegian news site E24 claimed the company would soon be making major staff cuts. The company's director of communications, Erling Ellingsen, recently responded to our query, confirming the layoffs, and adding that Ragnar Tørnquist's mysterious MMO The Secret World would indeed be delayed "by a few months." Age of Conan and its in-development expansion, Rise of the Godslayer, will not be affected by the layoffs.

Ellingsen explained that the cuts, which would primarily take place in Funcom's Oslo, Norway offices, were made "in order to adjust to the market situation." Though the layoffs are coming fairly soon after the developer announced its new, Montreal-based studio, Ellingsen explained that "this has nothing to do with the establishment of our studio in Canada." We wish our Norwegian game-crafting allies the best of luck in getting back on their feet.

Gallery: The Secret World

Closing Game Crazy stores begin clearance sales this weekend [update]

by Alexander Sliwinski { Sep 30th 2009 at 8:35AM }

The 200+ Game Crazy stores expected to close by the end of October will begin a liquidation sale, starting this weekend. Locations expected to shutter have received boxes and a list of items that are to be sent back for redistribution, which allegedly includes "all systems, major first party accessories (controllers, memory, etc)." The "majority" of games released within the last year will be also be sent out, "both new and used." Several employees have commented that closing stores will likely be "pretty bare" by the time the sale starts.

The timetable for the liquidation, corroborated by several sources:

10/3-10/11: 30% off everything in the store
10/12-10/18: 50% off everything in the store
10/19-Closing: 80% off everything in the store

There doesn't seem to be a consistent date for when the stores will close, but we haven't heard of any location staying open beyond October 27.

We continue to work on getting a master list of which stores are closing, as well as a list of items sent back for redistribution. Request for official comment from Game Crazy corporate on several issues, including what customers with pre-orders at closing stores should do, have gone unanswered. If you're a Game Crazy employee with more details, please feel free to contact us*.

*Tips will remain confidential, please leave a valid email address in case we have further questions. Thank you!

Update 2: If you know of specific locations closing, click here.

Update: Adjusted liquidation dates slightly following new information.

[Thank you to everyone who contributed to this story!]

Report: Funcom cutting 20 percent of staff, The Secret World delayed

by Griffin McElroy { Sep 29th 2009 at 11:20AM }

According to a report from Norwegian news site E24, Funcom recently announced in a stock exchange briefing that it would be cutting 20 percent of its staff and, as a result, would delay the launch of The Secret World by a few months. Following this announcement, the company's stock took a sizable 18 percent dip -- as did our hearts, which became somewhat infatuated with the developer's mysterious MMO at the Penny Arcade Expo.

This news is somewhat confusing considering the company decided to open a brand new Montreal chapter earlier this month, where it was planning on hiring more than 100 people over the next year and a half. We've contacted Funcom to find out the reason for the cuts, and to see if this new studio will be affected.

[Via Edge Online]

Game Crazy closing 200 locations in October [update]

by Alexander Sliwinski { Sep 28th 2009 at 9:14PM }

Joystiq has learned that retailer Game Crazy plans to close 200 of its approximately 680 locations at the end of October. Sources working at Game Crazy stores attached to Hollywood Video locations have told us that the movie rental chain will remain open after their stores' closures.

Game Crazy's official statement on the matter: "Movie Gallery, Inc. is currently operating in an unprecedented consumer/retail environment. In order for us to continue to best serve our millions of customers across North America we're addressing underperforming stores and ensuring that there is sufficient [return on investment] associated with each of these stores going forward. The vast majority of our stores will be unaffected by these efforts."

For those who've placed a pre-order at a Game Crazy, it would be advisable to check if that location will still exist at the end of the month. We are currently working on obtaining a list of locations affected. If you're a Game Crazy employee with more details, please feel free to contact us*.

Update: If you know a specific location is closing, help us with our master list: Click here.

*Tips will remain confidential, please leave a valid email address in case we have further questions. Thank you!

Rumor: Square Enix Japan axes 200-300 positions

by Ben Gilbert { Sep 28th 2009 at 3:00PM }

Given there are no official sources named whatsoever, we're placing today's news that Square Enix Japan will be cutting 200 to 300 employees from its staff squarely in the rumor pile.

Kotaku heard that the Japanese publisher will supposedly be making cuts to its Japanese branches, leaving the recently acquired Eidos studios untouched. This rumor comes just days after Mega Man creator Keiji Inafune declared, "Japan is over. We're done. Our game industry is finished."

Vogster Entertainment restructures, focusing on CrimeCraft

by JC Fletcher { Sep 17th 2009 at 6:35PM }

Vogster Entertainment may not be closing as has been rumored, but the publisher has announced significant changes to its business model. Speciifically, it the company is "restructuring to focus its resources toward the enhancement and expansion of content for their recently launched CrimeCraft shooter-MMO hybrid."

The statement alludes to "significant staffing changes," and notes that the New York-area headquarters is still open -- with no mention of the Chicago, Moscow, or Kiev offices.

"Vogster has seen a number of releases this year," vice president of development Daniel Prousline said in the statement. "As an independent developer, we need to be very strategic in our use of available resources and shift from already launched titles to support the ongoing development and growth of CrimeCraft."

"We regret the necessary staffing changes and the talented employees that this impacts, but it is an unavoidable step in moving to the operational stage of CrimeCraft and optimizing for the development of yet to be announced titles." The company promises new content and "major announcements" related to the title at an upcoming press event.

BottleRocket fizzles out of existence

by Alexander Sliwinski { Sep 4th 2009 at 9:08AM }

BottleRocket Entertainment, the company that had worked on Splatterhouse and a game based on The Flash, has shut down. Studio founder Jay Beard confirmed the closure and noted in an email that he plans to make a new operation "from the ground up."

According to Beard, BottleRocket had been in a precarious position "for the past six months," presumably ever since Namco Bandai pulled the Splatterhouse project from the studio citing "performance issues." The developer denied the accusation and members of BottleRocket were even put back on the Splatterhouse project after the full team was removed. Another contributing factor to the studio's passing was likely the halted Flash game that was allegedly in development until publisher Brash Entertainment's demise. Hopefully, Beard will have better luck with his next studio.