Activision cuts more studios after huge profit

http://kotaku.com/5469858/rumor-activision-axes-guitar-heros-neversoft-shuts-down-luxoflux

Prototype developer Radical Entertainment isn't the only studio rumored to get the axe from parent company Activision today. Sources close to and within developers Neversoft (Guitar Hero) and Luxoflux (Transformers: Revenge of the Fallen) are also being gutted.

Luxoflux, also responsible for True Crime and Kung Fu Panda games for Activision, is said to have been shut down completely, according to former employees. Approximately 55 people have been let go, according to sources at the company, with some possibly being transferred to Call of Duty developer Treyarch.

Activision is said to have laid off nearly twice that at developer Neversoft, formerly of the Tony Hawk Pro Skater series and responsible for the Guitar Hero series after the departure of Harmonix. With Activision executives saying yesterday that the publisher planned to ship just ten Guitar Hero and DJ Hero games this year, down from 25 SKUs last year, those cuts make sense. You know, business-wise.

When contacted, Activision provided the following statement.

"Activision Publishing continually evaluates its resources to ensure that they are properly matched against its product slate and strategic goals. In 2010, the company's sku count will be smaller than in 2009 driven in part, by a decrease in the number of music-based games we will be releasing."

"As we discussed on our earnings conference call yesterday, we are directing our resources against the largest and most profitable business segments, and as part of this initiative, we are realigning our resources to better reflect our slate and the market opportunities. At the same time, we are increasing our digital/online capabilities as we expect that digital/online will continue to become a more meaningful part of our business model in the years ahead."

I really hope independant studios are taking notice so when activision tries to buy them, they can say no to the boatload of money because job security is worth more these days

A direct copy from the playbook of MS...

I havnt liked one single game from Activision this gen.MW2 was the the closest to good I could get.

Ppl need to stop saying all companies are the same. There not. Some are more greedy then others like Activision

All they care about are BIG profits. If they make 10 billion one year and only 10 billion and 1 the next its bad and ppl get fired. And It looks like even after the amazing year that was 2009 even more devs are cut just to increase CEO profit

Ppl need to stop saying all companies are the same. There not. Some are more greedy then others like Activision

All they care about are BIG profits. If they make 10 billion one year and only 10 billion and 1 the next its bad and ppl get fired. And It looks like even after the amazing year that was 2009 even more devs are cut just to increase CEO profit

13C

..... All companies are the same, in that their main goal is to produce profit.. Now some may support its customers more then others.. But in the end of the day it takes money to run a business, not the unending love from the posters in system wars.

[QUOTE="13C"]

Ppl need to stop saying all companies are the same. There not. Some are more greedy then others like Activision

All they care about are BIG profits. If they make 10 billion one year and only 10 billion and 1 the next its bad and ppl get fired. And It looks like even after the amazing year that was 2009 even more devs are cut just to increase CEO profit

sSubZerOo

..... All companies are the same, in that their main goal is to produce profit.. Now some may support its customers more then others.. But in the end of the day it takes money to run a business, not the unending love from the posters in system wars.

Thats one thing. Its true all companies want money but how they go about making it in regards to ethics is diff.

You see, this is the evil that is Capitalism, companies that lay-off workers and still make a profit just further illustrates the ever growing divide between the richest of the rich and us average folk. We need do to something about these bloated CEO's who value their workers more dead than alive we need to rise up and......................Wait, wrong forum. Anyways this is sad.

Sort off topic - I don't likethe way Activision does their business.They released dlc characters for Marvel Ultimate Alliance 2 and after less than 2 months they took it off completely along with MUA1 dlc without any notice. People complained about it, but there was no official word on why it was taken off xbl and psn. Early January Activision finally released a statement stating the extra characters were limited time only and it expired on Dec. 31, 2009 even though it was taken off weeks before.

There was an article speculating Activision didn't want to pay the renewal licensing fees and decided to take it off completely.

A direct copy from the playbook of MS...

Modern_Unit

[QUOTE="Modern_Unit"]

A direct copy from the playbook of MS...

WilliamRLBaker

Please provide a link of where i said those exact words...

[QUOTE="WilliamRLBaker"][QUOTE="Modern_Unit"]

A direct copy from the playbook of MS...

Modern_Unit

Please provide a link of where i said those exact words...

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

I guess they're focusing their efforts on more COD and Guitar Hero rehashesrcignoni

the HD model isn't worki..... wait what?

[QUOTE="Modern_Unit"]

[QUOTE="WilliamRLBaker"] no company ever! before microsoft has shut down a studio NEVER, EVER.WilliamRLBaker

Please provide a link of where i said those exact words...

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

you clearly don't know anything about sports. lol

[QUOTE="Modern_Unit"]

[QUOTE="WilliamRLBaker"] no company ever! before microsoft has shut down a studio NEVER, EVER.WilliamRLBaker

Please provide a link of where i said those exact words...

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

I'm pretty sure i didnt say "no company ever! before microsoft has shut down a studio NEVER, EVER"....

[QUOTE="WilliamRLBaker"]

[QUOTE="Modern_Unit"]

Please provide a link of where i said those exact words...

Phaze-Two

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

you clearly don't know anything about sports. lol

[QUOTE="WilliamRLBaker"]

[QUOTE="Modern_Unit"]

Please provide a link of where i said those exact words...

Modern_Unit

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

I'm pretty sure i didnt say "no company ever! before microsoft has shut down a studio NEVER, EVER"....

I remember when Neversoft was a great studio... I'm not going to miss them after the past few games they've put out, though.

[QUOTE="Phaze-Two"]

[QUOTE="WilliamRLBaker"]

a direct copy from the playbook of MS.

Playbook denotes that they wrote the rules, the plays, the settings by which a situation occurs. that's exactly what you said, that some how Microsoft is the most well known the architect of such activities in the business world and therefor any one that does it after is copying from their playbook.

Even if you didn't mean that, you need to word it better because what you said means that.

WilliamRLBaker

you clearly don't know anything about sports. lol

you mean, If I am part of a football team, and a create a unique form of blitz shadowed under a attempted field goal and I put this in my playbook thats not a playbook?

why would they close radical entertainment? they brought in boat loads(welll maybe bucket loads lol)of money too activision with prototype...

The saddest part is that hard-working employees of the company are losing their jobs, while Kotick, who has never even made a video game in his entire life, sits at the top of the cash pile, grinning like the Cheshire Cat. Gotta love capitalism, huh? People who do no work are rewarded, and the people who do all the work get punished.killzonexbox

Amen to that, sadly.

A direct copy from the playbook of MS...

Modern_Unit

[QUOTE="killzonexbox"]The saddest part is that hard-working employees of the company are losing their jobs, while Kotick, who has never even made a video game in his entire life, sits at the top of the cash pile, grinning like the Cheshire Cat. Gotta love capitalism, huh? People who do no work are rewarded, and the people who do all the work get punished.Pixel-Pirate

Amen to that, sadly.

I guess they're focusing their efforts on more COD and Guitar Hero rehashesrcignoni

The saddest part is that hard-working employees of the company are losing their jobs, while Kotick, who has never even made a video game in his entire life, sits at the top of the cash pile, grinning like the Cheshire Cat. Gotta love capitalism, huh? People who do no work are rewarded, and the people who do all the work get punished.killzonexbox

It is indeed sad but I am pretty sure that running a company is pretty hard work.

[QUOTE="Pixel-Pirate"]

[QUOTE="killzonexbox"]The saddest part is that hard-working employees of the company are losing their jobs, while Kotick, who has never even made a video game in his entire life, sits at the top of the cash pile, grinning like the Cheshire Cat. Gotta love capitalism, huh? People who do no work are rewarded, and the people who do all the work get punished.yoyo462001

Amen to that, sadly.

Generally in my experience the man at the top making a billion a year never does and never could do the amount of work the man at the bottom does.

I'm sure BK does work. I don't think he works so much more than the average game designer that he deserves 1000X their salary.

That and in my experience the guys at the top are the ones amoral enough to get there, not the ones who worked the hardest. And Koitick basically defines that. But thats my opinion and mine alone.

funny, were experiencing the same problem with the company that Im working in, the ceo wanting to cut cost by laying off workers so he can get more money when his 5 yrs contract finishjohnlennon28

Kotick has been the CEO for over 19 years now, however.

[QUOTE="yoyo462001"][QUOTE="Pixel-Pirate"]

Amen to that, sadly.

Pixel-Pirate

Generally in my experience the man at the top making a billion a year never does and never could do the amount of work the man at the bottom does.

I'm sure BK does work. I don't think he works so much more than the average game designer that he deserves 1000X their salary.

That and in my experience the guys at the top are the ones amoral enough to get there, not the ones who worked the hardest. And Koitick basically defines that.

[QUOTE="Pixel-Pirate"]

[QUOTE="yoyo462001"]Wow this is just typical coming from people who love to hate the people at the top and say they do nothing. BK didnt get to that position doing nothing he worked hard, he also has a different job than the people at the bottom hes the leader that has to rally the troops. It like you saying why doesnt Obama do and fight in the war in iraq. the workers arent getting punished, if they produce good work as a studio you keep your job it simply as that if you dont then you face the risk of being shutdown which is more than fair. It keeps the good studios in and the bad ones out.yoyo462001

Generally in my experience the man at the top making a billion a year never does and never could do the amount of work the man at the bottom does.

I'm sure BK does work. I don't think he works so much more than the average game designer that he deserves 1000X their salary.

That and in my experience the guys at the top are the ones amoral enough to get there, not the ones who worked the hardest. And Koitick basically defines that.

Correct me if I'm wrong, because I may be getting mixed up but wasn't Koitick the guy who basically said he wanted to make designing a game unfun basically just for the hell of it? You would think saying that would be a bad decision, bigger than a programming error, but apparently morals arn't a big deal in todays society.

[QUOTE="yoyo462001"][QUOTE="Pixel-Pirate"]

Generally in my experience the man at the top making a billion a year never does and never could do the amount of work the man at the bottom does.

I'm sure BK does work. I don't think he works so much more than the average game designer that he deserves 1000X their salary.

That and in my experience the guys at the top are the ones amoral enough to get there, not the ones who worked the hardest. And Koitick basically defines that.

Pixel-Pirate

Correct me if I'm wrong, because I may be getting mixed up but wasn't Koitick the guy who basically said he wanted to make designing a game unfun basically just for the hell of it? You would think saying that would be a bad decision, bigger than a programming error, but apparently morals arn't a big deal in todays society.

Wow this is just typical coming from people who love to hate the people at the top and say they do nothing. BK didnt get to that position doing nothing he worked hard, he also has a different job than the people at the bottom hes the leader that has to rally the troops. It like you saying why doesnt Obama do and fight in the war in iraq. the workers arent getting punished, if they produce good work as a studio you keep your job it simply as that if you dont then you face the risk of being shutdown which is more than fair. It keeps the good studios in and the bad ones out.yoyo462001

[QUOTE="yoyo462001"]Wow this is just typical coming from people who love to hate the people at the top and say they do nothing. BK didnt get to that position doing nothing he worked hard, he also has a different job than the people at the bottom hes the leader that has to rally the troops. It like you saying why doesnt Obama do and fight in the war in iraq. the workers arent getting punished, if they produce good work as a studio you keep your job it simply as that if you dont then you face the risk of being shutdown which is more than fair. It keeps the good studios in and the bad ones out.JLF1

Free Radical now belongs to Crytek and is called Crytek UK. The studio in question is called Radical Entertainment.

Profit/5 is better than profit/10 , that's how i see it.

[QUOTE="yoyo462001"]

Wow this is just typical coming from people who love to hate the people at the top and say they do nothing. BK didnt get to that position doing nothing he worked hard, he also has a different job than the people at the bottom hes the leader that has to rally the troops. It like you saying why doesnt Obama do and fight in the war in iraq. the workers arent getting punished, if they produce good work as a studio you keep your job it simply as that if you dont then you face the risk of being shutdown which is more than fair. It keeps the good studios in and the bad ones out.JLF1

[QUOTE="JLF1"][QUOTE="yoyo462001"]Wow this is just typical coming from people who love to hate the people at the top and say they do nothing. BK didnt get to that position doing nothing he worked hard, he also has a different job than the people at the bottom hes the leader that has to rally the troops. It like you saying why doesnt Obama do and fight in the war in iraq. the workers arent getting punished, if they produce good work as a studio you keep your job it simply as that if you dont then you face the risk of being shutdown which is more than fair. It keeps the good studios in and the bad ones out.Hexagon_777

Free Radical now belongs to Crytek and is called Crytek UK. The studio in question is called Radical Entertainment.

Sorry about that, I always confuse them :P

I have the same problem with the late Factor 5 and Level 5, even though I'm a member of the Level 5 union:cry:

A publisher doesnt (or rarely) shuts down a studio than is exceeding it expectations, its either the game didnt do as well as needed to secure their jobs (ie getting a reasonable amount of sales may not be enough) or the publisher feels it can free up resources from closing down the studio and put it into another one which it feels will give it more profit. Did activision actually say it sold past their expectations because if they didnt i wouldnt go saying it sold over expectations, maybe it surpassed ours or the general public but if it did not surpass activisions then it doesnt matter.

yoyo462001

I remember reading that in some NPD thread 6 month ago. I don't have time to search for it, it might have been only the Studio itself that said that so don't quote me on it.

True, it might not have lived up to Acivisions expectations in the end but the question we (Yes I think we have the right to ask questions) should ask is if the game was profitable or not. It sold well over a million. If it was then that was a great mistake IMO to close it down. It might end up biting back at Acitvision in a couple of year.

[QUOTE="Pixel-Pirate"]

[QUOTE="yoyo462001"]However its not just the amount of work that is dependent on salary. BK job is so much more important than some programmer in a studio even if the programmer works 10x harder if he e.g. messes up on the job the consequences are little however if BK then they are large, his decisions lead to millions being won or lost. So under these circumstances why should the programmer get paid more.yoyo462001

Correct me if I'm wrong, because I may be getting mixed up but wasn't Koitick the guy who basically said he wanted to make designing a game unfun basically just for the hell of it? You would think saying that would be a bad decision, bigger than a programming error, but apparently morals arn't a big deal in todays society.

Which is why I'm not a fan of capitalism ;) but thats a topic for off topic, not system wars.

Gotta love capitalism, huh? People who do no work are rewarded, and the people who do all the work get punished.killzonexbox

You're confusing it with Liberalism.

Political debates....

In MY System Wars?!

It's more likely than you think.