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The Great Developer Massacre of 2023-2024 (and onwards?)


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Doesn't surprise at all that indies are feeling the pinch as well.

There was an indie developer on Era stating that it's near impossible to get any kind of decent exposure these days due to the flooding of the market. They weren't wrong. You could have your game show up at an Indie Direct but unless it's doing something REALLY special, it's likely it will be forgotten about pretty quickly.

For the layoffs to have happened at Evening Star, clearly the game didn't do that well, despite having decent reviews.

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I wonder if the person that decided to not announce the game until launch is one of those being let go - that choice was a bit of a disaster. Especially so for a game that takes a bit of time to get to grips with. 

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  • 2 weeks later...

https://www.bloomberg.com/news/articles/2024-10-04/tencent-guillemot-family-are-said-to-consider-buyout-of-ubisoft?utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter&cmpid=socialflow-twitter-business&utm_content=business

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Tencent Holdings Ltd. and Ubisoft Entertainment SA's founding Guillemot family are considering options including a potential buyout of the French video game developer after it lost more than half its market value this year, according to people familiar with the matter.

The Chinese tech company and Guillemot Brothers Ltd. have been speaking with advisers to help explore ways to stabilize Ubisoft and bolster its value, the people said, asked not to be identified discussing a private matter. One of the possibilities being discussed would involve teaming up to take the company private, according to the people.

Some minority shareholders including AJ Investments have been pushing for either a take-private or a sale of Ubisoft to a strategic investor amid the stock price plunge. Considerations are at an early stage and there's no certainty they will lead to a transaction. Tencent and the Guillemot family are also considering other alternatives, according to the people.

The Tencent vultures are circling the Ubisoft corpse...

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Tequila Works, the studio behind Rime, has announced layoffs and the cancellation of a game. Per VGC

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Spanish development studio Tequila Works has made a "small" number of layoffs.

It said the move followed the decision to cancel an unannounced project that had been in development at the Madrid-based outfit.

"With deep regret, we must inform of the decision to cancel an unannounced game," Tequila Works said in a LinkedIn post.

"This tough decision means we will be restructuring the studio to concentrate on the development of only one game. These changes will have an impact to a small number of roles at the studio.

"This is an incredibly difficult time, and our focus is to provide the support and guidance to those affected," it added.

:(

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Namco are essentially forcing workers to quit.

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Video game publisher Bandai Namco Holdings Inc. is cutting its workforce after canceling several titles due to lackluster demand, according to people familiar with the matter.

The Tokyo-based company is taking a traditionally Japanese approach to reducing staff and sending workers to rooms where they are given nothing to do, putting pressure on them to leave voluntarily, said the people, asking not to be named discussing private information. Since April, affiliate Bandai Namco Studios Inc. has moved about 200 of its roughly 1,300 employees to such rooms and nearly 100 have resigned, said the people. More are expected to leave in coming months, they said.

Such oidashi beya, or "expulsion rooms," are sometimes used by Japanese corporations in a country with some of the world's strictest labor-protection laws. Employees are typically given no work-related tasks, but are left with the knowledge that their performance will give managers ammunition to cut severance when they do leave. Many employees use their time in such rooms to look for other jobs.

Bandai Namco said its goal is not to push employees out of the company.

"Our decisions to discontinue games are based on comprehensive assessments of the situation. Some employees may need to wait a certain amount of time before they are assigned their next project, but we do move forward with assignments as new projects emerge," a representative of Bandai Namco said. "There is no organization like an 'oidashi beya' at Bandai Namco Studios designed to pressure people to leave voluntarily."

Over the summer, the company further shuttered smartphone game Tales of the Rays and said it would take down big-budget online game Blue Protocol in January. It's also decided to either cancel or pause development of several games, including ones that feature characters from animes Naruto and One Piece, as well as a project commissioned by Nintendo Co.

 

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1 hour ago, Hero-of-Time said:

Namco are essentially forcing workers to quit.

 

Video game publisher Bandai Namco Holdings Inc. is cutting its workforce after canceling several titles due to lackluster demand, according to people familiar with the matter.

The Tokyo-based company is taking a traditionally Japanese approach to reducing staff and sending workers to rooms where they are given nothing to do, putting pressure on them to leave voluntarily, said the people, asking not to be named discussing private information. Since April, affiliate Bandai Namco Studios Inc. has moved about 200 of its roughly 1,300 employees to such rooms and nearly 100 have resigned, said the people. More are expected to leave in coming months, they said.

Such oidashi beya, or "expulsion rooms," are sometimes used by Japanese corporations in a country with some of the world's strictest labor-protection laws. Employees are typically given no work-related tasks, but are left with the knowledge that their performance will give managers ammunition to cut severance when they do leave. Many employees use their time in such rooms to look for other jobs.

Bandai Namco said its goal is not to push employees out of the company.

"Our decisions to discontinue games are based on comprehensive assessments of the situation. Some employees may need to wait a certain amount of time before they are assigned their next project, but we do move forward with assignments as new projects emerge," a representative of Bandai Namco said. "There is no organization like an 'oidashi beya' at Bandai Namco Studios designed to pressure people to leave voluntarily."

Over the summer, the company further shuttered smartphone game Tales of the Rays and said it would take down big-budget online game Blue Protocol in January. It's also decided to either cancel or pause development of several games, including ones that feature characters from animes Naruto and One Piece, as well as a project commissioned by Nintendo Co.

Very common practice amongst Japanese companies.  Konami in particular were notorious for this...

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Hey all,
I want to share some important updates about
@leagueoflegends
PC. We've made changes to our teams and how we work to make sure we can keep improving the League experience now and for the long-term. But I want to be clear: we're not slowing down work on the game you love. We're investing heavily in solving today's challenges faster while also building for the future.
As part of these changes, we've made the tough decision to eliminate some roles. This isn't about reducing headcount to save money—it's about making sure we have the right expertise so that League continues to be great for another 15 years and beyond. While team effectiveness is more important than team size, the League team will eventually be even larger than it is today as we develop the next phase of League. For Rioters who are laid off, we're supporting them with a severance package that includes a minimum of six months' pay, annual bonus, job placement assistance, health coverage, and more.
We have full confidence in
@RiotMeddler
,
@RiotPabro
, and the League leadership team, who are leading the charge in this next phase of League's journey, and we look forward to sharing more about our ambitious plans in the future.
Thank you all for playing and for being part of the League community.
Marc

This one is particularily callous; especially considering how LoL makes money hand over fist...

jim-sterling-jimquisition.gif

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On 10/15/2024 at 12:56 PM, Hero-of-Time said:

Namco are essentially forcing workers to quit.

Gross. 

Even more so when in the same day they report that Dragon Ball: Sparking! ZERO sold over 3 million copies within 24 hours of its launch: 

:nono:

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A reorganization project to ensure the company's long-term future.

Amid deteriorating results, and despite the actions already taken, the company is now compelled to consider a reorganization project to safeguard its competitiveness in an increasingly demanding and competitive ecosystem.

This project could impact DON'T NOD's workforce in France and may affect up to 69 jobs. An initial exchange took place today with the employee representative bodies, and an information-consultation process with these same bodies will subsequently be initiated regarding this project.

Don't Nod now making layoffs. The hits just keep on coming.

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18 minutes ago, Hero-of-Time said:

Don't Nod now making layoffs. The hits just keep on coming.

Ah, this one sucks. 

I feel like Don't Nod have been in such a strange place since moving on from Life is Strange, especially with 2 wrapping up a year before COVID. I've been meaning to get to Jusant for a while because it seems like my cup of tea but just haven't made time for it yet, but looking through what they've released since the end of Life is Strange 2, none of their games are striking me as being a hit of any sort or managing to permeate the zeitgeist. 

Banishers felt like it came and went completely at the start of the year to very little fanfare and looks much higher budget than previous projects they've worked on, so I wouldn't be shocked if that was the metaphorical straw breaking the camel's back here after a few years of not really having any obvious success. 

Hopefully Lost Records: Bloom & Rage next year can be a success and help them bounce back, it definitely looks like a game which is going back to the style of a Life is Strange sort of game, and they know that audience, so fingers crossed for them!

And of course hopefully those who have lost jobs can find new work sooner rather than later :peace:

Edited by Julius
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  • 2 weeks later...

https://sonyinteractive.com/en/news/blog/an-update-from-playstation-studios/

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*Below is an internal email from Hermen Hulst, CEO, Studio Business Group, Sony Interactive Entertainment distributed today to SIE employees.  

********************************************************************************** 

Dear Team, 

Today, I want to share some important updates from Sony Interactive Entertainment’s Studio Business Group.   

We consistently evaluate our games portfolio and status of our projects to ensure we are meeting near and long-term business priorities. As part of our ongoing efforts to strengthen SIE’s Studio Business, we have had to make a difficult decision relating to two of our studios – Neon Koi and Firewalk Studios.  

Expanding beyond PlayStation devices and crafting engaging online experiences alongside our single-player games are key focal areas for us as we evolve our revenue streams.  We need to be strategic, though, in bringing our games to new platforms and recognize when our games fall short of meeting player expectations.   

While mobile remains a priority growth area for the Studio Business, we are in the very early stage of our mobile efforts.  To achieve success in this area we need to concentrate on titles that are in-line with PlayStation Studios’ pedigree and have the potential to reach more players globally.  

With this re-focused approach, Neon Koi will close, and its mobile action game will not be moving forward. I want to express my gratitude to everyone at Neon Koi for their hard work and endless passion to innovate.   

Regarding Firewalk, as announced in early September  (An Important Update on Concord), certain aspects of Concord were exceptional, but others did not land with enough players, and as a result we took the game offline.  We have spent considerable time these past few months exploring all our options.   

After much thought, we have determined the best path forward is to permanently sunset the game and close the studio.   I want to thank all of Firewalk for their craftsmanship, creative spirit and dedication.  

The PvP first person shooter genre is a competitive space that’s continuously evolving, and unfortunately, we did not hit our targets with this title. We will take the lessons learned from Concord and continue to advance our live service capabilities to deliver future growth in this area.   

I know none of this is easy news to hear, particularly with colleagues and friends departing SIE.  Both decisions were given serious thought, and ultimately, we feel they are the right ones to strengthen the organization.  Neon Koi and Firewalk were home to many talented individuals, and we will work to find placement for some of those impacted within our global community of studios where possible. 

I am a big believer in the benefits of embracing creative experimentation and developing new IP. However, growing through sustainable financials, especially in a challenged economic environment is critical.   

While today is a difficult day, there is much to look forward to in the months ahead from the Studio Business Group and our teams.  I remain confident that we are building a resilient and capable organization driven by creating unforgettable entertainment experiences for our players.   

Thank you for your continued support. 

The expected outcome of Concord's failure.

Edit: Looks like Kotaku has a source that states the project cost more than $200 million before marketing costs and not including the studio acquisition cost... (The total cost is probably pretty close to that $400 million number that was rumoured before then).  That's alotta money that they just flushed down the toilet!

Surely one of the biggest commercial bombs in video game history?  Well... perhaps until Marathon bombs and Bungie probably gets shut down...

Edited by Dcubed
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44 minutes ago, Dcubed said:

 

Surely one of the biggest commercial bombs in video game history?  Well... perhaps until Marathon bombs and Bungie probably gets shut down...

Yeah, I can't imagine Marathon doing anything close to what's needed to keep Bungie on good terms with Sony, especially with the rumoured development hell it's in. What a mess.

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1 hour ago, Happenstance said:

Not devs being fired but an article on veteran devs leaving for smaller companies to try and regain some of that enjoyment from making games again (I've posted the Archive link to avoid the Bloomberg paywall):

https://archive.ph/b3WaD

Problem with this is that this isn't really any safer than the AAA space at the moment. Sure, it will be much better for them from a personal standpoint, being happier in their place of work and all, but success for smaller developers has become increasingly hard in a saturated market. The fact is, there are simply too many games being made and everyone is fighting for the same audience.

I do think smaller teams make for a better work atmosphere though. As someone who has worked for a couple of start up companies, there's always a great feeling working with a small group who all share a common goal. Things tend to go to hell when the company starts expanding and becomes more corporate, with meetings happening left and right and people not really sure what others around them are doing.

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One of the things you hear from devs lately as well is that they think the industry is heading for another crash. Not necessarily the same as last time but something has to come to a head with the spiralling costs and devs being shuttered. I just hope those leaving to form more reasonable companies find themselves in a better position when it does.

Edited by Happenstance
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10 minutes ago, Happenstance said:

One of the things you hear from devs lately as well is that they think the industry is heading for another crash. Not necessarily the same as last time but something has to come to a head with the spiralling costs and devs being shuttered. I just hope those leaving to form more reasonable companies find themselves in a better position when it does.

Agreed.

If it does happen, I hope those left standing don't repeat the same mistakes.

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1 minute ago, Hero-of-Time said:

Agreed.

If it does happen, I hope those left standing don't repeat the same mistakes.

The only thing I do hope stays the same between crashes is that another title gets buried in a secret landfill again. Concord may just be that title.

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