Kotaku
EA Chicago has gone down for the count. I can exclusively report that EA is closing the studio effective immediately. Word is that EA is working hard to place many of the 150+ employees at its other studios around the world. What does this mean for the future of the Def Jam fighting franchise and the forthcoming Marvel fighting game? I'm still looking into that, but it sure seems like those games won't be coming anytime soon.
A source has also leaked me with the surprisingly honest memo sent to EA employees from Frank Gibeau, President of EA Games. In it he says:
"Within the EA Games Label, we are committed to running each franchise and facility as a city/state, teams with unique creative identities as well as responsibility for product quality, ship dates and profitability....Unfortunately, EA Chicago hasn't been able to meet that standard....Closing EA Chicago is the toughest decision I've made in my career - one that in no way reflects on the talent and dedication of the people who work there."
This was no doubt an extremely difficult decision for EA. I was at the Chicago studio this summer to tape an episode of Game Head on the new Marvel fighting game and it was a beautiful facility with very talented developers.
Read the full memo from EA after the jump...
FROM FRANK GIBEAU Today we are announcing the closure of our studio in Chicago. This is a difficult decision but we are convinced it's the right thing to do for the future of the Games Label and EA.Within the EA Games Label, we are committed to running each franchise and facility as a city/state, teams with unique creative identities as well as responsibility for product quality, ship dates and profitability. We recognize that games require large investments and extended development cycles. We're willing to take risks, make long-term investments, and to support teams and individuals between launches. But each team is responsible for staying on a reasonable path to profitability. Sticking to that strategy is what gives us the financial resources and flexibility to take risks on new projects.
Unfortunately, EA Chicago hasn't been able to meet that standard. The location has grown dramatically in the past three years while revenue from the games developed there has not. The number of employees has grown from 49 in 2004 to 146 people currently in the new facility in downtown Chicago. As it stands, EA Chicago has no expectation of hitting our profitability targets until FY2011 or later.
Closing EA Chicago is the toughest decision I've made in my career - one that in no way reflects on the talent and dedication of the people who work there. I've enjoyed their games and consider GM Kudo Tsunoda to be one of the best creative minds in our industry. The people impacted by this decision will be treated fairly - we're offering relocation opportunities to many and there will be outplacement assistance and severance for all eligible employees.
I know this decision will be unsettling to many beyond those who work in Chicago. It's important that you understand that we are willing to take creative risks and make long-term investments in people and projects. But the city/state philosophy demands that every project be committed to delivering a reasonable expectation of profitability. It's a performance commitment that binds us together and ensures we have the resources we need to invest back into our people and creative output.
Finally, when EA announced our quarterly earnings last week, John and Warren referenced facility closures. We had planned to include Chicago in that communication but a personal tragedy in the studio - the death of a colleague - resulted in our delaying the announcement out of respect for his family and friends. I apologize for any confusion or concern that caused.
I think you'll find that in addition to tackling some serious challenges, we are making great progress on our business. Consumers have responded well to our new IP and quality scores are tracking up. We are proud of our recent hits, such as Skate and the success we have made in making a solid game with The Simpsons. And we're looking forward to breakout hits like Need For Speed Pro Street, Rockband, Burnout Paradise, Battlefield Bad Company, Army of Two, Crysis, and more in the future with Mass Effect and Mercenaries 2 World in Flames.
We're definitely headed in the right direction.
Frank
Comments
Maybe Bioware or Pandemic will be getting the Marvel fighting game :P
Well, that sucks. I was probably the only person on earth who enjoyed Def Jam Icon, and I was really looking forward to seeing them use that same engine in a Marvel fighting game.
Oh, poor EA. Tragic they can't see profit from one studio while they're busy eating up the rest of the bleeping gaming world (sup, Pandemic?)
That's too bad for the Chicago branch. I was looking forward to the new Marvel games. Hopefully the employees can land on their feet.
PS I haven't been around forever, but is this the first time Geoff has posted on Kotaku? :O
Also, how long has Geoff Keighley been writing for the site? That seems new.
"The people impacted by this decision will be treated fairly - we're offering relocation opportunities to many and there will be outplacement assistance and severance for all eligible employees."
At least it looks like they are taking care of the employees at a time like this.
damn Mr. Moore paycheck must be huge.
"And we're looking forward to breakout hits like Need For Speed Pro Street"
Thats a joke right?
Geoff is the guest writer for this week. He only made two posts yesterday I guess due to GT commitments.
This is a shame though. Never nice to see a studio go down. Good luck Chicago employees.
@playingkarrde
Actually I don't mind seeing EA studios go down, it knocks a little reality into them.
Never been the biggest fan of Def Jam, but still, it's a pretty big loss.
Thats what happens when you take a game that was as awesome as Def Jam :FFNY and turn it into the trash that was Def Jam:Icon.
No more Def Jam games hopefully. God I hated those games, but my roommates love them. And same for the Marvel games.
But it is a good thing they will help the employees, most companies would give them some money, or not, and run.
Lawl, their taking credit for Mass Effect being a "hit" already, as if EA had anything to do with it.
Def Jam Icon sucked, and the last gen Marvel fighting game sucked even worse. No loss here.
:-( There goes one of the few Chicago game development houses (i think Midway's the only big one left). Good luck to everyone involved.
This was very much a business decision. The last couple games out of this studio has been duds for the most part. It makes sense for EA to close down studios that is doing nothing to help the profit line. It always sucks to see a studio closeur but I can understand EA trying to cut cost. No matter what the company, it is always about money reguardless of what fans think. Hope this means they will put the money saved into Bioware and Pandemic so they can make quality games.
how much you wanna bet bashcraft's next scavenger hunt will involve tracking down the guest editors' posts? i'll bet 13 cone hats.
After all the crap EA got for the whole no-overtime thing, it's good to hear that they'll be "relocation opportunities." Then again, that could just be saying that...
This is a sad day for those at the former EA studio, and game developers as a whole in Chicago. While different studios in the city may be regarded as "the competition", they also strengthen the cities attractiveness to draw world class game developers. Having a major studio close hurts the Chicago game development scene significantly.
I do very much hope that those folks who have lost their jobs find a great new opportunity. Sometimes a violent change like this can be the best thing to shake a career in a new direction.
I wish the fired ones good luck to them and their families... Hopefully someone better will sign the talented ones on...
@Lethal_Dosage: Geoff is filling in for Crecente as a guest editor this week. Here's the post where Crecente spells it out.
@I_Hate_This_Place: I was just about to comment that it's too bad a studio willing to take a chance and try something new (fighting game with moves and stages syncing to music, preset and custom) wasn't allowed a graceful failure and the chance to try again with another game. It's too bad that EA says they want innovation only to turn around and shut down a studio for pushing just 1 failure that was an honestly good shot at innovative gameplay.
But then I read comments like yours and realize why EA gets the wrong idea. Gamers need to be a lot less harsh on games that are obviously trying to be innovative at the risk of failure. It's because of over-generalizing our hatred we get a response of, "Welp, let's never try that again." This is just a damn shame.
If closing down a branch of your company is the biggest thing you have done, clearly you aren't working hard enough...
what games did EA chicago make other than def jam icon and this new marvel fighting game?
Considering the (arguable) "Evil Empire" rep EA has, it's nice to see the CEO actually has a heart, delaying the announcement because of a death, and speaking plainly, honestly, and compassionately to the employees through the memo with no BS.
@TOPROCK:
I'll bet you 14!
Didn't DEF JAM sell well?
@Puffa: Yep, and from that Game Head with them, the new Marvel one looked terrible as well. It might have played fine, but their character revisions were just horrible. Dr. Doom's armor does not need to look like some variation of a steampunk tank.
this sucks for chicago ... all we have left in the majors is Midway. Why does EVERYTHING have to LEAVE HERE!
Since when did Geoff Keighley start writing for Kotaku? Nice.
not very good for chicago gaming at all. i was surprised to even find out a chicago EA branch. this town is really in the crapper as far as tech goes.. disappointing at best.
This is sad. The Fight Night franchise should have been enough of a moneymaker to keep the studio going but it looks like they grew too big too quickly.
Whoa...Geoff writes for Kotaku now?
@demonblah:
Well as much as we all may dislike EA, and what the brand stands for it's still tough seeing a studio with this many people close down, there are still regular people working there who are now out of a job.
making games is expensive and risky, i notice that only publisher live long, the game creation studios often have a premature death.
That's really too bad, a lot of people really enjoyed Fight Night Round 3, although I can't speak on the matter personally since I never played it. Hopefully the team can stay mostly intact within another studio.
"Unfortunately, EA Chicago hasn't been able to meet that standard....Closing EA Chicago is the toughest decision I've made in my career - one that in no way reflects on the talent and dedication of the people who work there."
There is a contradiction there. Did I read that right?
Wish these guys the best of luck. Its an optimistic picture for as there is still a big undersupply of good development talent so they'll get picked up in no time. For Chicago, its another story. I can't imagine Midway can keep it together much longer either.
If Montreal keeps subsidizing production costs, it could be the next Hollywood of video games soon.
@Torokun: Geoff's just here as a guest editor for the week while Crecente is on vacation. Still, it's good to have him around.
ya gotta do what ya gotta do. it's sad to hear that they are going to shut it down, but with the recent losses in profit, who can blame them? i feel bad for the low level testers who won't be offered another position or offered severance.
why does everyone forget this is a business? the house wasn't performing? why keep it open and hemmorage money? saying "EA" can afford it because they are massive etc." is a terrible way to look at it. EA got to be EA by being EA.
they did the right thing. sometimes careers and jobs are sacrificed. it's just the way of the world.
@DaveKap: Agreed. I am being a bit too harsh, and I am saddened at the loss of jobs. Icon just pissed me off so much. But still, you are right, as I lament companies for not taking chances a lot. Hypocritical is me.
Wow, I didn't know Geoff posted on Kotaku, hey what's up man!
I think this little ditty might sum it up:
When a friend of mine interviewed with Kudo Tsu-No-Damn-Idea-What-He's-Doing...and he asked about EA's tendency to buy and then shutdown studios -- and what would prevent that from happening at EACHI -- Kudo's response: "It's business, that's why we have to Kick Ass! Every Day!"
My friend then responded: "I guess Kudo failed to Kick Ass. Every Day."
Bullshit.
Chicago created amazing games including the stunning Fight Night. EA gave them shit properties to deal with, and considering, they did admirably.
Yet another reason to hate EA.
When a friend of mine interviewed with Kudo Tsu-No-Damn-Idea-What-He's-Doing...and he asked about EA's tendency to buy and then shutdown studios -- and what would prevent that from happening at EACHI -- Kudo's response: "It's business, that's why we have to Kick Ass! Every Day!"
My friend then responded: "I guess Kudo failed to Kick Ass. Every Day."
@WaterMedia:
chicago created 1 stunning game, which was really a next-gen iteration of an already established liscense, which isn't to say that FN3 wasn't a triumph, because it was, but let's at least get the facts straight.
def jam was junk. marvel never really got off the ground. i hear the team didn't want to make FN4 and that had alot to do with them closing up.
HOLY SMOKES! I was about to get hired there ... OOOh god I have friends there ... OOH GOD NO! ...
QUICK SOMEONE CALL OPRAH, SAVE US OPRAH! CHICAGO IS IN NEED - YOUR HOMETOWN!
chicago still has a stron