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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1,500 employees? Jesus, what percentage of their total staff is that?
I like the new EAP program but I'm not sure about this move.
I really don't agree with their decisions. I don't know how their venture into facebook games will go.
I am upset by this news for 2 reasons.
"investing more in our biggest games." This to me only means one thing. We are not going to be taking as many chances by developing new IPs, we are just going to sit on our biggest revenue grabbers. EA Sports will continue to be the main focus at EA now.
Also, 1500 employees. 1500 game makers now floating around the idustry looking for jobs. I am but a krill in a sea of whales. My chances are now slimmer.
Very unfortunate decision indeed. However, with the Unreal Development Kit free for downloading perhaps there will be job opportunities at indie gaming companies.
awwww... maybe they bit off more than they could chew... after all 30% of the gaming business is a very large chunk...
Redwood shores, isnt that Visceral games??? maybe in light of Dead space extractions abysmal sales, but Tiburon? Their Madden studio??? This is not good..... BUY EA GAMES, next they're going to lay off people at EALA, We cant let the......economy......ruin C&C4
"I should point out that EA didn't layoff 1,500 people to buy Playfish. The layoffs were to stop the financial losses the company has been suffering recently. The purchase of Playfish is, as Elliott Johnson pointed out, to reach a new demographic. Whether or not it's the right move remains to be seen..."
Sound business decision my foot!! I call it just one bad move all together. Apps are only as good as the phone and service that it's contracted out to. Sure almost 5/8ths of the new smart phones coming out have social apps, and downloadable apps galore but that doesn't necessarily mean that the whole populace is going to move towards this kinds of tech right away.
It may still be a few years from now until every man, and woman can fully understand and use such a phone. And on the other hand, it comes down to personal choice (completely longer and separate matter) on whether or not to move in that direction. Quite frankly I'm tired of hearing about the next new app available it's become quite stale, and it hasn't even hit puberty in tech shelf life!! There's nothing wrong w/being self sufficient unless we all don't mind end being like the people in Wall-e. Fat, lazy bastards who need apps to run our daily lives.
Will That mean games wont come out sooner? Did they make Cafe world on Face-Book? If so its a horrible game!
This just shows that EA cares more about controlling the market than making quality games or caring for loyal employees. Shameful.
Thats terrible, I honestly do not play games on facebook (except for uno about 3 times). They might not even update Madden (or any sports title.) next year except for the rosters.
While it is important for the company to keep fluid by having its fingers in that emerging game market, i believe sacrificing 1,500 people's jobs in the trade is kind of like hooking up with youre best friend's lady; sure you get something out of it but everyone is going to know you are a ***.