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.

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linkNow even Bethesda is saying “we’ve learned our lesson” from the whiplash of ending their game title and capping levels. Gamers want to go back and re-try content they missed, they want to run side quests and talk to everyone in the world they want to grind themselves to über powerful levels and become a god in their fantasy world. Can you blame them?

You can’t really blame them for wanting to maximize the content, although it’s slightly more evolved than RPG’s of old. Perhaps it was World of Warcraft and other MMORPG’s that brought us to the stage in life where we all want to squeeze every last RPG dime out of the title. As a kid I wondered the world of Hyrule and covered every tile of graphical color, burned every bush, bombed every stone looking for all the content. However, even Zelda had an end with scrolling credits – you didn’t just land on a platform with your master sword and a dream.

Other titles have used level caps to limit you and draw you into the next release of the game. This was popular in the D&D world because the game is designed to target specific levels of difficulty. They may only allow you to gain level 10 because the enemies are no tougher than level 13, allowing the challenge to be good but not overwhelming. If they allow you to get to level 50 they’d have to design the game so all the enemies grow powerful along with you — that’s not always a desired result.

Final Fantasy is a popular franchise that typically allows you to grow infinitely powerful depending on how much time you want to spend repeat killing the same enemies. Gamers aren’t always into the grind, they just want to grind “enough” to make the challenges a little more do-able.

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This is also a great marketing technique, Red Alert 3 arrives soon, so this will help you keep it fresh in your head prior to the new release. Maybe this also gives new gamers the ability to experience the old title before heading into the third revision.

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