by Ravi Sinha
In the past, whenever a developer folded, its members swiftly found work in other studios. While the small fry came and went, the big guys like EA and Microsoft persevered and eventually thrived. But if this isn’t the year of the gaming depression, nothing is. Respected journalists are resigning, media corps are going bust and of course, the small studios, once thought safe under the canopy of a big name, are now running for cover.
What are the major lynchings and downfalls, which contributed to the walls now crumbling around our ears? Let’s take a look:
- Jeff Gerstmann was fired from Gamespot in November of last year, allegedly because of a bad review for Kane and Lynch. The side-effects passed over into this year as well. The man, many held to be responsible for firing Gerstmann, Vice President of CNET, Josh Larson, was sacked on the 9th of April this year.
- CNET began to encounter other difficulties when fending off a hostile takeover from hedge fund Jana Partners on Wall Street. During this time, 120 U.S. employees were let off.
- Around March, Spot Runner, an ad agency, laid off about 115 of it’s 385 employees. Their VP, Joanne Bradford, also left to join Yahoo. Some say this was due to the collapse of a $550 million deal between SR and Microsoft, in which the latter was supposed to purchase the former.
- On March 5th, Ziff Davis announced that it was filing for Chapter 11 bankruptcy after selling its B2B division to Insight Partners. As of now, the firm is in the middle of restructuring with the help of a group of shareholders.
- Games for Windows magazine was closed down in April and the final editorial staff consisting of Jeff Green, Sean Malloy, Ryan Scott and Shawn Elliott were integrated with 1Up.
- The resignation of Tomonobu Itagaki from Tecmo in June caused the greatest ripples, mostly due to the whole public circus of the events. He filed a 145 million yen lawsuit against Tecmo president, Yoshimi Yasuda, for unpaid incentive wages for Dead or Alive 4. This was joined by a lawsuit filed by two plaintiffs on behalf of 300 employees for unpaid wages, amounting to 8.3 million yen.
- As if Tecmo didn’t have it hard enough, president Yasuda resigned on Septmber 1st, citing “personal reasons” for his departure. Did he crack under all the controversy? The gaming media hasn’t heard from him since.
- Jeff Green (still bitter about the GFW magazine’s closure) and Shawn Elliott, resigned in September, resulting in GFW Radio’s final podcast episode on September 17th.
- Ensemble Studios, developer of the best-selling Age of Empires games, was shut down on September 9th. Non-essential staff was laid off and other employees have been given incentives to remain until completing the production of Halo Wars, according to a leaked Microsoft internal statement.
- Electronic Arts has recently laid off 600 employees, about 6% of it’s total work force. What started as a rumour later led to the company confirming the news, along with the fact that $50 million would be saved by this action. Hopefully, Jeff Green still has a job (as he left 1Up to work on The Sims with EA).
- EA’s action seems to have opened the flood-gates. THQ recently announced it was closing five of its studios - Helixe, Locomotive, Mass Media, Sandblast Games and Paradigm - and laying off employees from Juiced (more than a third laid off) and Rainbow Studios. According to a spokesman, THQ is, “Making sure that we’re set up over the next three to five years to be profitable and successful…whether it’s because of things happening to our industry or the economic environment as a whole”
- WildTangent closed its internal gaming studio, laying off around 20 employees as CEO, Alex St. John, resigned. Spokesperson Sean Sundwall stated, “It’s become less incumbent on us to develop our own games to satisfy our customer’s needs.” The company will remain a casual game publisher, for now.
Does the chaos show any signs of halting?




