If you’ve ever been through an acquisition or merger you’d have expected this news to come, but for those new to the concept it’s simple: you can’t keep everyone. After a complete merger you end up with two sales departments, two IT departments, etc.
Do you really need them all? No, not really. You’ll need to keep some on board in order to “brain dump” your job onto others and hopefully stick around for the long hall. Some employees will probably be shuffled to other job responsibilities while some get packages and a thank you card.
These are some of the growing pains when working towards a successful merger, so don’t be surprised or start spreading rumors when a few people are let go. As someone who’s gone through it in two big mergers I can say that certain departments already know their fate ahead of time. Many IT and sales folk start looking for new jobs the minute the merger is announced.
Midway’s been around the industry for years, has decided to lay off up to 90 people and cut the Criminal project from their lineup. This is a long term plan of cost reduction by the board of directors to get down costs and keep the company running smoothly.
Despite the announced shutdown of Star Wars: Galaxies and the approaching new Star Wars-based MMO Star Wars: The Old Republic, loyal subscribers don’t want Galaxies to end. They’ve begun a petition to 
Electronic Arts is (was?) building a first-person-shooter based on the Command and Conquor series and was set to release on PC, Xbox 360 and PlayStation 3. The original title was originally slated for 2008 and now has been pushed to EA’s fiscal year 2009 or 20010.