This Week In The Business: Layoff Season

Image via Shutterstock
Image via Shutterstock

QUOTE | “London Studio have done a great job in leading the way in VR development…” - A Sony representative announcing a round of layoffs at the PlayStation VR Worlds developer just weeks before the team’s game and the PSVR headset launch.


Elsewhere in the business of gaming this week...

QUOTE | “As projects are completed, it is natural to review and restructure teams around current and future needs.” - A Sony representative confirms layoffs at the company’s San Diego studio.


STAT | 250 - The number of people Disney laid off from its gaming and consumer products division this week as it continues to withdraw from internal game development. The division has posted operating profits of $1.54 billion over the first three quarters of the company’s fiscal year.

QUOTE | “An analysis of Pokemon Go player data suggests that there is a magic formula behind the success of the game, and it that has more to do with organic virality and brand power than the dawn of AR.” - EEDAR VP of Insights Patrick Walker throws cold water on the idea of Pokemon Go sparking an AR revolution.

QUOTE | “I think the kindest thing I can say about Valve is that if you’ve got to have a market hegemon, they’re the least unpleasant one imaginable. But they’re still a market hegemon, and they’re always going to use that power to their advantage.” - Failbetter Games founder Alexis Kennedy suggests how developers should consider the Steam maker as it changes the way it handles user reviews.

QUOTE | “We are getting pitched a lot of projects that did a Kickstarter campaign and were successful but they knew in advance that they were never going to make the title they wanted with the money they got from the campaign.” - Gambitious CEO and co-founder Paul Hanraets lays out his biggest concern with the current state of crowdfunding.


STAT | $2.8 million - The amount of investor backing Pixelmage Games has openly said it received for Hero’s Song. The company is currently looking to raise an additional $200,000 through Indiegogo.

QUOTE | “If we are going to create a superhero team, we needed our version of SHIELD. After all, superhero bases are not free.” - Ex-World of Warcraft lead and Bonfire Studios CEO Rob Pardo explains the new developer’s decision to take investment from Riot Games and Andreessen Horowitz.


STAT | $13 million - The amount Logitech paid Mad Catz to acquire its Saitek subsidiary. Mad Catz paid $30 million for Saitek in 2007.

QUOTE | “So I think we’re now, by the end of this year, we’ll have invested $30 million into virtual reality games. And we’re just about seeing a path to break even...” - CCP Games CEO Hilmar Petursson says the company, one of the earliest supporters of the current VR wave, should recoup its investment within a matter of months.


QUOTE | “The men basically see that yes, there is a problem, but it’s not as big a problem as the women see it from their perspective.” - IGDA head Kate Edwards, on why 67% of women see the games industry failing to provide equal treatment and opportunity for all, compared to 46% of men. Both numbers rose from 2014 to 2015.

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I decided to pick up Epic Mickey the other day and I have to say it is a crying damn shame what Disney is doing with their games division.

It’s even worse when you look at all the cool IPs they have now. Where’s my Marvel game? My Star Wars games?