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IGN hit with layoffs; 1UP, Gamespy and UGO shutting down
IGN was hit with editorial layoffs today, with sites 1UP, UGO and Gamespy expected to be shut down."We are focusing on our two flagship brands, IGN and AskMen. Unfortunately, as a result, we have made the decision to close sites and restructure our teams accordingly," a company spokesperson confirmed to Joystiq.The news comes less that a month after IGN was purchased by j2 Global through its Ziff Davis subsidiary.
IGN acquired by Ziff Davis
IGN and its related sites have been acquired by j2 Global through its Ziff Davis subsidiary. Although the sale price was undisclosed, Bloomberg cites sources who claim it was less than the $100 million News Corp was asking for the bundle. Ziff Davis will now take over IGN, UGO, 1UP and AskMen.com. According to j2, these sites have over 600 advertisers and 53 million global monthly unique visitors.The historical context for all this gets crazy and incestuous, so strap in, we'll try to make this easy. The zombie Ziff Davis at the heart of this current deal was acquired by j2 Global for $167 million in late 2012, after Ziff's years of financial difficulty and bankruptcy.The incarnation of Ziff Davis that game industry watchers probably remember is the one that once upon a time ran 1UP and EGM. Those properties were sold in 2009 to the Hearst corporation, which had also acquired UGO earlier. This led to the death of EGM and reinterpretation of 1UP.Two years later, News Corp., which owned IGN, took over the Hearst properties and, thusly, the former Ziff Davis site 1UP and Hearst's UGO.So, now, here we are, with the reincarnated Ziff Davis taking over IGN. We think we got all that right.
Report: IGN and UGO to merge, spin off from News Corp
News Corp's IGN and Hearst Corporation's UGO are merging, with an official announcement expected this week, reports AllThingsD's Peter Kafka. The alleged plan after that is to take the merged entity in the near future and create a standalone business that focuses on video games outside of News Corp -- the notion being that IGN, which is said will make $10 million in profit this year off $100 million in revenues, will do better outside of News Corp's influence. News Corp is also supposedly looking to take on investors for IGN before the split and may also be looking to acquire more properties before the spin-off occurs. Comscore data claims IGN has an audience of 19.7 million U.S. visitors, while UGO apparently has 13.1 million. If you want to put this into some grander context, this merger actually combines IGN, UGO, GameSpy, WhatTheyPlay.com and the remnants of the 2009 gutting of 1UP/EGM.
Copernicus' Curt Schilling talks business models and target audiences
Curt Schilling, former World Series MVP and one of baseball's noted clutch performers, is now firing fastballs at the MMO industry. In addition to forming 38 Studios and spearheading work on the company's cryptic Copernicus MMORPG, Schilling clearly loves games. He also loves to talk about them (and occasionally talk smack) as a new interview at Ugo illustrates. "We're not making a game for everybody either because when you make a game for everybody, you end up making it for no one. I know what we love, I know what we want, and the game that I'm playing is growing into being what we set out to make," Schilling enthuses. When he says "we," he's talking about the all-star roster assembled at 38 studios, including everyone from R.A. Salvatore, to Todd McFarlane, to veteran developers that "have been on every major MMO from Ultima Online." All this talent doesn't come cheaply of course, but Schilling is adamant about making a traditional (albeit well-polished) MMORPG despite the current free-to-play craze sweeping the industry. "We won't launch free-to-play. That makes no sense. [...] Given the feedback that we've gotten and in a lot of focus testing that we've done, people will pay a subscription if they believe that they're getting their money's worth," he says, while also noting that the Copernicus budget is somewhere in the neighborhood of $100 million.
BioWare talks Warhammer Online's forthcoming expansions
In a recent GDC 2010 interview with UGO, BioWare's Dr. Ray Muzyka said of Warhammer Online, "Right now it's [a] really profitable business unit within my group." Muzyka went on to say they've actually seen more people come into the game since enacting the free-to-play model on the game's earlier levels, and that he personally felt they were working. In fact, by the sounds of it, Warhammer Online is due for some interesting announcements in the future. Another of Muzyka's comments on the title was, "We have new content planned and all kinds of cool expansions for it." We don't know how much more clear cut a message can be than that. And hey, it's good news! We're looking forward to our playable Skaven and Lizardmen, Mythic and BioWare.
Relaunched EGM subscriptions now available, magazine details remain hazy [update]
Hey, you remember EGM, right? The gaming mag that folded in January 2009 when 1UP/EGM was sold by Ziff-Davis Media to Hearst/UGO? And then the original publisher Steve Harris purchased it for a relaunch earlier this year, only to find out that the relaunch was pushed to April? We have to imagine that, by now, you're positively itching to put your money down on a subscription (if you haven't already subscribed to Kill Screen, of course). It would appear that your wish has been granted, as EGM has officially opened the door to its subscription portal, promising savings of 70 percent off the newsstand price. For 32 issues and access to "EGMi: The Digital Magazine," US customers are looking at dropping $14.99, while 64 issues (as well as the aforementioned digital mag access) will cost $24.99 -- Canadian subscribers are looking at $34.99 and $54.99 for 32 and 64 issues, respectively, minus the digital version. Though we've yet to receive any real idea of the magazine's content, Harris has already signed on ex-EGMers Dan "Shoe" Hsu and Demian Linn, as well as the Co-Op folks, to fill those shoes (or "Hsu's," as it were). We'll certainly find out more this April when the first issue is scheduled to hit subscribers and newsstands. Update: To be clear, the $14.99 and $24.99 subscription deals actually equal a half year or full year of physical magazines (one per month; six and 12, respectively), as detailed in the fine print. "Your subscription includes either six print issues and 26 premium digital issues of EGM[I]: The Digital Magazine for a total of 32 issues OR 12 print issues and 52 premium digital issues of EGM[I]: The Digital Magazine for a total of 64 issues." Confusing enough for you?
Garnett Lee becomes editorial director for GameFly media, including Shacknews [update]
1UP editor and podcast personality Garnett Lee has joined GameFly to become the editorial director for all of the game rental service's media properties. He will now take charge of GameFly's recently acquired and created sites, which include Shacknews, FileShack, Ponged and Gameanswers.com. Lee was one of the few survivors in the great 1UP culling that occurred earlier this year, when the former Ziff-Davis property was purchased by UGO. GameFly, as we've mentioned before, is slowly shifting from its core competency of being a game rental service to becoming an internet publishing outfit.Update: We spoke with Garnett Lee and his comments about the change are after the break.
EGM sold to original founder, resumes publication this year
Electronic Gaming Monthly, which died when UGO bought out the 1UP brand in January, is being resurrected by its original founder, Steve Harris. Harris, who started EGM in 1989, has regained the print and online publishing rights from Ziff Davis Media as part of an undisclosed agreement. Harris intends to relaunch the magazine in the second half of 2009 and says he has "exciting plans for the evolution of what will once again be a leading independent voice for the gaming community."There's no word yet on whether ex-EGM staff will be making a return to the magazine, or if Harris is in talks with UGO to re-establish a partnership with 1UP, but more details are due to be revealed during E3 next week. We guess in this case print really isn't dead.
Counting Rupees: Oh, magazine
Each week Jeff Engel and Geoff Brooks contribute Counting Rupees, a column on the business behind gaming: With the end of the holidays came the news that EGM is being shuttered. These are disappointing days for many people, not least the hard-working staff that contributed to the respected magazine. I think that the occasion probably merits a mention as much for its inevitability as its sadness.In days in which even large, mainstream print publications are facing severe financial difficulties, it seems all too obvious that smaller, niche publications are going to face similar pressures. And gaming magazines seem to me to be among the most vulnerable, for several reasons.
Boobs! Sweeping changes coming to 1UP
As UGO's purchase of 1UP continues to send shock waves across the gaming landscape, details about what to expect under the site's new overlords have begun to emerge. Or rather, what we could have expected. 1UP's Scott Sharkey drops his synergistic ideas for a new site comprised of lists, boobs and lots of both. But alas, Scott's been promptly muzzled by his new handlers.Don't worry, though. Joystiq plans to "borrow" all of your fine ideas, Scott, for our new megasite: JoyDaily.com -- brought to you by AOL's TMZ!
Final EGM issue to be 'printed' on 1UP
R.I.P. Electronic Gaming Monthly1989-2009 EGM's departing final editor-in-chief, James Mielke, has posted the magazine's last cover on his blog, revealing that the issue will be available to read (in hi-res) on 1UP. Protip: You can print it out and put it in your mailbox out of respect for the publication's demise.Mielke's post goes on to discuss his eight-month stint in the captain's chair -- following the departure of longtime editor Dan Hsu -- and features candid images of the mag's final days. Toward the end of the piece, Mielke claims the EGM circulation was between 550-650K and its death "was simply a matter of UGO wanting a website, not a magazine."Bonus: Here's an image of nearly every EGM cover, ever! [Via GameCulture]
UGO boss tells his side of the story; world listens
It's like this: there are two sides to every story (even stories about things with more than two sides, apparently). Take last night's 1UP / UGO situation (UGO-gate? 1UP-ton?). On the surface, that certainly appeared to be a gruesome bloodletting, with the entirety of EGM's staff let go, the magazine shuttered, and much of 1UP's popular media production teams sent packing. That's certainly not good news for any of the affected, including Ziff's community.But, inversely, it's no secret that EGM and other video game mags (not to mention the entire print journalism industry in general) aren't doing so well – one need only peruse themediaisdying for a moment to get the idea. From UGO's point of view, they weren't laying people off, but hiring 24 new employees and expanding the UGO workforce by 33%. Speaking with MTV Multiplayer, UGO chief J Moses says that "the simple reality is that we only wanted to buy 1UP and related sites" and that "closing EGM has absolutely nothing to do with UGO."What about all those podcasts and video shows? 1UP's Sam Kennedy – who agrees that UGO is not the bad guy – tells MTV that "the Retronauts podcast will continue" and there are "some possibilities" regarding the future of the 1UP Yours podcast. As for the The 1UP Show video podcast? It's "more up in the air," according to MTV. So, dear readers (and angry 1UP / EGM fans), does this help you understand the situation? Empathize with UGO? Still gwumpy? Sound off in the comments.
1UP layoffs and the ripples therein
When half of the staff leave/are laid off from a gaming site as notable as 1UP, it affects essentially everyone within the industry -- as does the closure of EGM, one of the very best gaming magazines around. Their excellent coverage of games like Final Fantasy XI, Warhammer Online and World of Warcraft (to name just a few) have always been the sort of things we here at Massively strive for in our own features. Whether it was podcasts like Legendary Thread or the infamous live reading of a certain Age of Conan incident on GFW Radio, the group working at 1UP were always in it to entertain, inform and hopefully make everyone think a little bit about their favorite pasttime.Understandably, the massive layoffs have created a sort of hate brush fire that's been roaring across the internet mostly via message boards fueled by a mix of ex-1UP Twitters and hearsay. While it pains us as fans to see so many talented and hard-working writers let go, there's some truth to the saying, "You can't win 'em all" in this situation. Our own searing anger was doused a little upon reading a lucid post detailing the why behind the whole debacle.
1UP director Sam Kennedy: UGO not 'the bad guy'
The closure of games mag EGM and accompanying staff reductions at 1UP had many gamers pointing the finger at UGO. It seems unfathomable that so many longtime industry veterans would find themselves out of a job. Even a day later, it's difficult to truly understand the repercussions of the UGO-1UP merger.Sam Kennedy, director of the 1UP Network, may have come off as a bit too cheery in yesterday's press release. However, a post on NeoGAF reiterates his belief that UGO's purchase of 1UP is ultimately the best (and perhaps only viable) option left for the community. "There's no way to rationalize this for most people, and I don't want to sugarcoat anything," he says. "Fact: 1UP was a business that was losing money. Fact: This economy sucks and the ad market is diminished."UGO did what they could to, what I consider, 'save' 1UP. Obviously, all of us would have wanted to see things go differently - most of all me, considering I just lost many of my closest friends as coworkers and employees today ... If any company out there would have been willing to support us as we were, they certainly didn't step up. The only company that really did was UGO, and they did their very best to continue 1UP."While things are obviously going to be shaky for the 1UP Network in the coming weeks, Kennedy is hopeful that affected podcasts and writers will be able to return in the future. "I have a commitment from the UGO guys that they -- now, actually, we -- are going to do whatever we can to help these guys out and look for ways to continue these shows with them and/or to look into possibilities for new shows in the future. I'm not saying everything will be back to 'normal' as you knew it anytime soon, but I am saying there should be some good things to look forward to in the future."[Via Rosenberg's Ramblings, blog of UGO contributor]
Assessing the damage at 1UP [update]
While Ziff-Davis CEO Jason Young's message to his company -- including current 1UP Network staff -- today, along with coordinated press releases regarding 1UP's sale to UGO, painted a picture of strength in (and growth of) the 1UP brand, we've begun to hear reports quite to the contrary. Several key members of the 1UP staff have announced their termination via Twitter messages and posts to the NeoGAF forums. There's very little in the form of official word as to changes at 1UP at present, apart from Young's assertion that "more scale is necessary [for 1UP] to effectively compete in this market segment." Based on what we do know, the only scaling going on is in a backwards and downwards direction. Joystiq -- and many of our readers -- are great fans of the 1UP team's work, and care about what happens to these folks. We'll be keeping you posted after the break with the latest as it develops.
Official: UGO buys 1UP, EGM dead [update]
Within hours of our earlier post regarding 1UP's reported sale to the Hearst-owned UGO network, the deal was confirmed in individual press releases from both entities. Additionally, Ziff-Davis has made official the closure of EGM after nearly 20 years of publication. It's January issue -- currently on sale -- will be its last.1UP editorial director, Sam Kennedy, is quoted in the release, saying that the site's staff is "extremely excited to join the UGO team." UGO's release states that 1UP.com will operate as a separate entity and implies that its current staff will remain in place. The sale to Hearst also includes GameVideos.com, MyCheats.com and GameTab.com.The shuttering of EGM -- the oldest multi-platform games magazine in the US -- leaves GamePro and Game Informer as the last bastions of what, with today's news, continues to be the dying breed of print media.Update: There's not much in the way of new info, but Gamasutra got their mitts on an internal email from Ziff CEO Jason Young, who tells the staff that "more scale is necessary to effectively compete in this market segment." So UGO's planning to keep growing 1UP? Then why kill off the 1UP Show and layoff 30+ people? One other note: Ziff "will continue to operate the Filefront business as a part of the PCMag Digital Network." More as we hear it.Source – Ziff-Davis press releaseSource – UGO press release
PaidContent.org reports EGM's death, pulls story [update]
Update: As you can see here, it's official.Earlier today, media business site paidContent.org reported that video game media hub 1UP had been sold to Hearst (which runs competing hub UGO), and that the organization would be shuttering Electronic Gaming Monthly. You may remember that we reported that both moves were under discussion last month. PaidContent's report has since been pulled, but the full details were related by former 1UPer John Davison's What They Play. WTP then reported that sources had told them that the story would be validated or denied tomorrow. If this is on the level (and we have no reason to think it's not), it's a sad day for fans of video game magazines and game journalism in general. If it comes to pass, here's hoping everyone affected lands on their feet.
Exclusive: UGO in high-level talks to buy 1UP; EGM not part of deal
var digg_url = 'http://digg.com/gaming_news/UGO_is_in_High_Level_Talks_to_Buy_1UP_EGM_Not_Part_of_Deal'; Multiple sources in and around Ziff Davis Media have told Joystiq that UGO Entertainment is on the verge of finalizing a deal to buy parts of Ziff's 1UP Network, including 1up.com, GameVideos.com and MyCheats.com.The sources, who asked to remain anonymous due to the sensitivity of the talks, confirmed to Joystiq that the companies were in "very advanced talks" regarding the sale of many of Ziff's popular gaming web sites. 1UP Network editorial staff were reportedly informed of the potential sale in an all-hands meeting Tuesday and UGO executives will reportedly be flying out to meet with the Ziff staff as soon as Wednesday. Few details of the potential buyout plan are known at this time, but UGO reportedly plans to keep the Ziff sites operating independently as separate entities with their own branding, rather than subsuming them fully into the UGO Entertainment Network.Our sources also report that UGO has little to no interest in purchasing either Electronic Gaming Monthly magazine or FileFront.com, two wavering pillars of Ziff's increasingly shaky Game Group. Ziff has had particular trouble selling ads for upcoming issues of EGM, suggesting that the February issue might be the final one for the long-running magazine, our sources reported. This adds credence to recent reports that Ziff may be looking to transform EGM into an online-only property. Ziff has been looking for a buyer for the beleaguered Game Group for at least two years.UGO Entertainment started off in 1997 as Unified Gamers Online and currently attracts over 35 million unique monthly visitors to its general lifestyle portal at UGO.com. In July of 2007 the UGO Network was acquired by mega-publishing conglomerate Hearst Corporation. The network's current properties include GamingTarget.com, GameCheats.com and RPG-focused site GameBanshee.com, as well as celebrity-focused sites like At Pictures.
Rumor: UGO-owned E3.net lists Kid Icarus, Alan Wake, HL2: Episode 3
Did you hear Alan Wake was confirmed to be shown at E3? How about Kid Icarus Wii? Half-Life 2 Episode 3? Doom 4? All these games have been listed on E3.net under the E3 Games tab. There's just one problem ... E3.net isn't the official E3 page. (If you're curious, here's the official site.) Take note of the top banner, the bottom collection of links and all the latest news posts: yep, it's an UGO site. We've put in a call to their PR to see if there's any affiliation with the media summit, but that said, we doubt Microsoft, Nintendo, Valve or id Software would ever let these high-profile games be revealed so unceremoniously. Chalk this up as wishful thinking in the meantime.
Promotional Consideration: Quote-based strategy II
Promotional Consideration is a weekly feature about the Nintendo DS advertisements you usually flip past, change the channel on, or just tune out.Since we bemoaned Advance Wars: Days of Ruin's lacking marketing push last week, Nintendo has kept us holed up in our bomb shelter, walls trembling and lights flickering as wave after wave of advertisements, massive shells blasted from Leo Burnett's distant dreadnoughts, pound the smoking city above.Here's every salvo we've been hit with in just the past week: an official web site launch (with new media) media-heavy previews and several interviews with Nintendo's localization team two promotional emails sent out to Nintendo's online newsletter subscribers a launch event held earlier today at the Nintendo World Store (New York City) television commercials on both network and cable channels a two-page ad running in at least three video game magazines -- GamePro, Game Informer, and Electronic Gaming Monthly We stand, crumbs of concrete falling from our hair, corrected. As we promised in our last installment, we're taking a look at that two-page magazine ad for Days of Ruin, a print piece which features flattering quotes from three online video game sites.
