The Ying and Yang of Game Economics

The Ying and Yang of Game Economics

Electronic Arts lays off 1500 employees

Faiyaz Shaikh  | Published 11 Nov 2009 18:01 IST
Electronic Arts logo
According to a news article posted on Gamasutra, Electronic Arts has announced that it will lay off 1,500 employees by April 2010 due to reported net loss of $390 million. A follow-up post reported that studios affected by the downsizing include EA Redwood Shores, Tiburon, Mythic and Black Box.
EA Redwood Shores functions as the company headquarters and houses multiple development teams including Visceral Games, creators of Dead Space currently working on Dante’s Inferno. EA Black Box is known for NFS games, Tiburon for NFL and Mythic Entertainment specialize in MMO games like Warhammer Onine and Ultima Online.
In a somewhat related news, EA announced acquisition of Playfish—a company specializing in social games for online platforms like Facebook and MySpace. Reportedly, the total worth of the acquisition is close $400 million, with $275 million paid in cash, $25 million in stocks and another $100 million has been set aside an incentive (earn out) if and when the company reaches certain business milestones.
Look like the publishing giant is continuing its campaign of acquiring independent studios and when things get hairy they start firing people; only to continue the vicious cycle.
Faiyaz Shaikh
Faiyaz Shaikh

Email Email Faiyaz Shaikh

Electronic Arts layoff Playfish game economics

Related Articles is one of the most trusted and popular technology media portals in India. At Digit it is our goal to help Indian technology users decide what tech products they should buy. We do this by testing thousands of products in our two test labs in Noida and Mumbai, to arrive at indepth and unbiased buying advice for millions of Indians.

We are about leadership — the 9.9 kind Building a leading media company out of India. And, grooming new leaders for this promising industry