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Your email address will not be published.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

The Beatle’s Change Wii Price Point, Rock Band StyleThe Beatle’s Change Wii Price Point, Rock Band Style

By now everyone is used to paying more for Rock Band than meets the eye. The game disc is usually packed in several bundles for guitars, drums and, of course, stand alone. With The Beatles: Rock Band, MTV Games plans to release one product SKU, a game only disc. That game only disc, on the Wii is going to cost the same as other consoles: $59.99.

beatlesYou remember when Wii games were $49.99 and everyone made titles that hit this price point or lower? MTV isn’t going to stick to this standard, regardless of “last gen graphics” because you’ll buy it anyway, right? Rock Band is one of those games that has hit huge strides in the market over the last few years as people buy big plastic instruments to rock their house.

Now we’re going to see if those same people willing to pay $10.00 more than normal in order to play The Beatles songs. The Wii has a large audience of gamers but they’re the style of gamer that wants a good value for their product, after all, the Wii is cheaper than every other console and the games probably should match its differences compared to games for the other consoles.

This is an interesting decision, as the market plunges into despair MTV gouges games for $10.00 more because “The Beatles” happens to be in the title. Are you going to pay more for the Beatles? Not us.

(Thanks, 1up)

Little Big Planet – Release Date: October 21Little Big Planet – Release Date: October 21

If there is one time this year to pickup a PlayStation 3, it’s going ot be on October 21st when Sackboy jumps onto the scene with Little Big Planet. You don’t have to be a casual gamer to have a desire to play Little Big Planet and we’re sure to see that in upcoming reviews.

The question really comes down to, will Little Big Planet move consoles off the shelf? In theory, had the console been more reasonably price, you’d probably get a huge pop in sales. As it stands, you’re asking customers to spend above and beyond on a console just to play a 2D-Style platformer. No matter how fun the product is, and it will probably be fun in epic proportions, John Q. Public isn’t going to run out and drop large bills for the game.

Proof of that can be seen in the huge sales increase when Microsoft dropped their pricing structure. Gamers who were not current generation compatible ran out to pickup the console and the shelves went empty. No doubt Little Big Planet will move a few consoles, for those on the edge of PS3 readiness… but it won’t be long lived and it won’t be as epic as this title will.

Episode 253: Future GenerationEpisode 253: Future Generation

This week, Paul is still not available, which is unfortunate, since the Gaming Flashback is the classic DuckTales for the NES. There’s also a bunch of scintillating news items including:

  • Pachter: Nintendo “Blew It” With Wii U, “In Disarray”
  • Bethesda hiring talent for Xbox 720, PlayStation 4 game
  • EA reveals Mass Effect 3 preorders well ahead of Mass Effect 2‘s
  • Pachter: Next generation Sony and Microsoft consoles will have 4GB SKU
  • Sony filed patent For Kinect-like motion device
  • PSN Minis not working on Vita

We also reveal the winner of the Pixie Diamonds contest.