The lights are on
What EA gives with one hand, it takes with the other. Hot off the company’s confirmation of its $275 million acquisition of Playfish (makers of the free to play Facebook games, Pet Society and Word Challenge), EA has announced considerable cuts to other studios in its quarterly earnings report. Gamasutra reported earlier today that layoffs have taken place at several EA studios, including EA Redwood Shores, EA Tiburon, Black Box, and Mythic Entertainment. Some now ex-employees have been tweeting their woes, describing the layoffs as “HUGE chunks of EA,” and “about 40% of [Mythic Entertainment’s] employees.”EA has now confirmed the layoffs, which total 1,500 employees. The decision is expected to save the company $100 million annually, and was made in light of the $391 million the company lost this quarter alone. CEO John Riccitiello had this to say about the layoffs: “We are making tough calls to cut cost in targeted areas and investing more in our biggest games and digital businesses."While layoffs aren’t exactly unheard of in this economy, EA’s purchase of Playfish must make the decision harder to swallow for those left without a job. What do you think? Is EA’s decision to buy a social game publisher a good move, or should they have used that money to support their internal studios for the next three years? Let us know in the comments section below.
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I guess im not the only one without a job...
*deep Halo announcer's voice*
Suicide. -1 Kill.
I wouldn't have sided with buying a fluff gaming group over keeping more jobs to studios that already depend on EA. Boo EA, boo.
hey, someone has to pay (1,500 'someones', apparently) for the executive board at EA living beyond their means.
it's not like any of them are going to take a pay cut. *laughing*
Capitalism creates as many or more problems than it solves.
It's terrible for people to lose there jobs especially in this tough economy. But in order to survive a company must venture into new markets.
Geez 40% of Mythic Entertainment, good thing I gave up on Warhammer Online.
Stupid. Their acquisition of the social networking company is not going to get them back the money that they paid for it, nor is it going to let their consciences rest easy over all of the people that they are laying off.
It's not EA - it's typical American business. This is how it works - cut jobs under the pretense of bad "markets" or some other nonsense yet have the money to buy companies or pay exorbitant amounts to CEOs.
Don't ya love capitalism?
Aw, and they just got off my hating of their "If you can't beat 'em, buy 'em" thing with football. Oh well, gotta hate 'em for something. I'll hate them for firing Visceral employees.
This is terrible.
On IGN, I not only read this, but also that over a dozen unannounced projects were cancelled in EA because of this.
These projects are mainly those that the company didn't think would be a tremendous financial success if produced, which could possibly include Mirror's Edge 2... :-(
I guess if it's going to make EA more money this way this is the way to do it. However i don't see how these moves will make EA more financially sound. I'd expect to see more layoffs in the near future
THE END IS NIGH! 2012
That's pretty ridiculous actually. They should have used the money more appropriately. It shouldn't have gone to Playfish. Lucky EA corporate monkeys though.
layoff people to make crap free to play games. wow!?! my thoughts go out to all those people who lost their jobs to such a a**hole move. it is just idiotic for a company to spread themselves so thin. and when the idea backfires they crap on the people and studios who have put out merchandise that will bring in a lot more revenue.
I think Poison's got it right. This is the kind of thing that happens, unfortunately, especially in publicly-traded companies where the pressure to produce consistant profits is very high. You can't have the stock price dip.
I seem to remember the exact same thing happening after Mirror's Edge sold poorly less than a year ago. Riccitiello came out and said that projects were going to get cut...
That's a definite shame. Hopefully this is the last mass layoff we see for a while...
That is just sad. EA was promoting growth with the purchase of Playfish but then turn around a layoff the people that made them the money prior to that. I just doesn't seem right...but then again EA has people plenty more qualified then us to make those decisions and I'm sure it makes good business sense.
big companies do this all the time, nothing new here. i may respect EA's internal studios more now thanks to some excellent titles recently, but that doesnt mean i love the company as a whole behiond those developers. they are just as heartless, money drivin' as any other in the business.
Ea is hurting itself by laying people off. more unemployed people out there means less cash flowing around, less disposable income to buy those little extras we all like to buy ex. videogames.