Electronic Arts Issues 1,000 Pink Slips

Electronic Arts is planning to lay off 1,000 employees, approximately 10% of their employees. In this layoff their also consolidating EA Black Box back into EA Canada. EA Black Box was spun off as a studio outside of EA Canada to work on such titles as Need for Speed but, with the layoffs arriving, they’re going to be merging the remainder of EA Black Box into EA Canada by June 2009. The remaining EA Black Box employees will continue working on Skate 2.

The pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:

“This does not mean that the Black Box studio is closing. The studio is moving to our Burnaby campus to share the facility with EAC and other EA teams that operate out of our state-of-the-art facility. We will operate two distinct studios, each with their own distinct culture and teams, out of our Burnaby facility.” (gamespot)

EA hasn’t mentioned any specific franchise cancellation but we’re going to assume something is going to slip, it’s hard to imagine a company can lose 1,000 employees without impacting business operations. If EA was able to layoff 1,000 people without impacting day-to-day business, then they’re definitely hurting in the management department because that would be a ton of waste.

Big companies may cut costs during hard times but they said they’re, “implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities. The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers.”

We’re curious just how much EA is willing to risk on “creative” endevours considering publishers are already hesitant to break new ground. The next few years should yield great opportunities for smaller developers to put on their creative hat and open new doors and opportunities for themselves.

0 thoughts on “Electronic Arts Issues 1,000 Pink Slips”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 453: Videogame Piss-TakeEpisode 453: Videogame Piss-Take

Unfortunately, there’s no Donald Trump in this podcast – you’ll have to wait for an outtakes episode to listen to THAT discussion. However, there’s plenty of news culled from the past two weeks to enjoy.

The news includes:

  • Rumor: Beyond Good & Evil 2 Switch exclusive for first 12 months
  • ‘Game Mode’ for Windows 10 will power Xbox One and Project Scorpio games too
  • Square Enix strongly hints at Dragon Quest XI heading west
  • Xbox boss says Microsoft will still “take risks” after Scalebound cancellation

Let us know what you think.

Ensemble Studios To Close, Halo Wars Future Not In QuestionEnsemble Studios To Close, Halo Wars Future Not In Question

Ensemble Studios, owned and operated by Microsoft or, Microsoft Games Studios, has been targed to be dissolved. All employees will find new homes, a large quantity will start a new studio and continue maintaining the later released Halo Wars franchise.

Microsoft has chosen to close the studio as part of their growth plan of Microsoft Games Studios much like FASA was closed in the past. The difference, there is a new landing point for Halo Wars unlike the uncertain future of Shadowrun.

Commenting on the reason for the closure, Microsoft said, “This was a fiscally rooted decision that keeps MGS on its growth path. While the decision to dissolve Ensemble was not an easy one, Microsoft is working to place as many Ensemble employees who do not move to the newly formed studio into open positions within Microsoft as possible.” (gamespot)

Ensemble Studio’s folks will continue to work with Microsoft and will continue to support Halo Wars after its launch. It is important to stress their statement of continuing to support Halo Wars, there is no need to think the project will be done half-assed or without pride as the project will live on with a different studio name.

The only question is… what is causing Microsoft to close down studios with actively working real franchise projects? FASA went down, Bungie was let go on their own and now Ensemble Studios? There has to be something going on here… idea?

Diablo 3 Content Creation PhaseDiablo 3 Content Creation Phase

Now that Blizzard feels their engine is solid, it’s time to move on to creating content for the full game. Jay Wilson, Diablo 3‘s lead designer, says the game engine is in an advance stage of completion and much of the art team has moved onto Act 2. Don’t read into that, he said game engine.

Blizzard is obviously not hurting for money, given the success of World of Warcraft and they’ve always taken their time with projects to make them solid products. Blizzard’s name is on the line and they’re brand consists of three major franchises: Warcraft, Starcraft and Diablo. When you produce so few games you’re expected to do them perfectly.

How do they do it? As Wilson says, “If we haven’t rebuilt something five times it really doesn’t deserve to be shipped. That’s pretty much our policy.” (eurogamer) While a game engine is the foundation for a great game experience, the content is king. Blizzard is deep in the mire of content production so, although the engine might be solid, the final product is probably still far from complete.

End result, expect a high quality product once again from Blizzard.