Electronic Arts Issues 1,000 Pink Slips

December 22, 2008| schommer| 0 Comment| 10:58 am

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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.

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Episode 385: Beginning of the EndEpisode 385: Beginning of the End

This podcast marks the beginning of the end of Paul’s tenure as a regular co-host, as he will be leaving at the milestone episode 400. He and Jonah both bemoan the loss of last week’s taping, as it had laughter, tears, outrage and a long comic book conversation, but this episode more than makes up for it with items that make Paul squee.

The news includes:

Portal, Doctor Who, The Simpsons and more confirmed for Lego Dimensions
Report: Xbox One 60fps game DVR capture goes live
Nintendo partners with Universal Parks to create themed rides and attractions
Microsoft teases big Rare reveal at E3

All this and some nifty Listener Feedback.

MGS4 Pushes PS3 Up 300%MGS4 Pushes PS3 Up 300%

Metal Gear Solid 4 was a solid release for the PlayStation 3, the exclusive title that gives Sony an edge over the competition. This was Sony’s Halo 3 title and it needed to be a big success in order to keep gamers confident in the Sony brand.

Sony is reporting a 300% increase in PlayStation 3 sales over last month, mainly due to the desire for people to own Metal Gear Solid 4. Remember, this isn’t an increase in game sales, this is an increase in console unit sales, providing evidence that MGS4 sold consoles.

While Grand Theft Auto 4 seemed to sell a few consoles but, overall, didn’t impact console statistics during its release, this exclusive PS3 title has done just the opposite. Perhaps because of its exclusivity? Xbox 360 consoles have been in the hands of the consumer for a few years now, most of those consumers actually purchased GTA IV (as expected and reflected in sales) but not a lot went out to purchase the console. They already had it or didn’t care to own it for a game like GTA IV.

While many people purchased Metal Gear Solid 4 because it’s “Metal Gear,” you can see from the trailers that the game looked impressive, felt complete and contained a lot of great action. You’ll get a great sales pop the first few days on a title with a huge fan base but to sustain the growth and sell consoles you’ve got to provide a well known title that doesn’t suck.

MGS4 doesn’t suck by any reviewers score; it’s not perfect, but what game is? MGS4 delivered what it was said to deliver with very few bad experiences and that’s all you can ask for a console moving title.

So, what next? Sony has promised us that MGS4 is just the first of many titles to blow our minds. Resistance 2, Little Big Planet and what of that MAG game they showed off at E3? 256 players? We won’t hold our breath for that title, but Resistance 2 and Little Big Planet, combined, may move a few more units.

It may not be about the games today that move the next round of PlayStation 3 consoles, it’s about the promise of the games tomorrow with titles like MGS4 to hold us over until then.

(more…)

The PSN FiascoThe PSN Fiasco

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

How many PSN users had a credit card on file
Why Sony cannot determine if credit card was stolen.
What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.