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Rumor: Realtime Worlds lays off staff, puts APB up for sale [Updated]
Tweet var digg_url = 'http://digg.com/gaming_news/Rumor_Realtime_Worlds_lays_off_staff_puts_APB_up_for_sale'; One of the most recent MMOs to hit the market is already in deep trouble, according to multiple reports popping up over the internet. According to unconfirmed rumors, Realtime Worlds has fired the entirety of its MyWorld team, made drastic cuts and layoffs elsewhere, and might be putting APB up for sale. Announced last month, MyWorld was to be a social gaming experience scheduled for a 2011 launch. If these rumors are true, then Realtime Worlds is mired in financial trouble and is scrambling to keep from going under. A VG247 source reported, "As of 11:30 GMT Realtime Worlds have put a large proportion on their workforce on gardening leave ranging from 4-8 weeks. APB's staff will be reduced to admin and a skeleton staff of devs and artists to keep it running and do general updates, but this looks like the end of RTW." A developer on the APB European forums briefly addressed the situation by saying, "As we''ve announced we had to restructure the company to make it so that we can focus totally on APB. APB is still going strong and we fully intend to support 100%." We do know that Realtime Worlds fired several employees last month in an effort to restructure the company. Massively has contacted Realtime Worlds for comment, and we will update you as soon as we hear anything. [Update: Realtime Worlds has issued a statement confirming that some MyWorld employees, though not all, have been made "redundant," but that APB itself remains intact. "APB continues to be our primary development focus, and we remain fully committed to the game and its players." According to 1UP, Colin Macdonald emphasized that Realtime Worlds has "got the whole team working on making APB as good as it can be. It's a shame things haven't turned out the way we had envisaged them, but then the beauty of online gaming is that we can address problems and keep on improving experiences. We're completely behind APB, it's got huge potential, and we'll continue to make new content for it." Stay tuned for more updates!]
Realtime Worlds suffers layoffs and downscaling of second, unannounced project
Only one week out from the game's official release, APB development house Realtime Worlds confirmed today (via Develop) that "a small number of staff will be made redundant, and a second unnamed project will be downscaled." Oddly enough, the studio also announced that it's still hiring. Rather than commenting on specifics of the layoffs, Realtime CEO Gary Dale noted: "We now have to focus our efforts and resources on running APB as a 24 / 7 online live operations, creating new content and services for the future and ensuring the best possible experience for players." Dale also assured that the restructuring doesn't have to do with the reception of the new MMO at retail, saying, "APB experienced a very smooth launch for an online dedicated game along with a great reception from consumers and we're immensely proud of the game the team has produced." We've followed up with RTW for more specifics, and we'd like to offer our consolences to anyone at the studio that lost their job.
Foxconn axes suicide compensation, relocating some production to Vietnam or Taiwan
At yesterday's annual shareholder meeting, Foxconn revealed that it'll no longer be compensating families of dead employees as a move to discourage further suicides. CEO Terry Gou reasoned by exhibiting evidence that showed the money -- an amount almost equivalent to ten years' worth of salary -- was a major motivation for the suicides. One such exhibit was a man's suicide letter that contained the following message for his parents: "...now I'm going to jump off Foxconn, really leaving now, but you don't have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now." Gou also blamed a possible "Werther Effect" created by the news coverage, which might have led to six of the twelve suicides all taking place in May. Consequently, the company will be handing over its welfare management work to the local Chinese government, as it's unable to deal with too many social responsibilities. In the same meeting, the company made an unsurprising announcement that it's looking to relocate some manufacturing work, amid a worsened earnings forecast due to increased wages -- basic salary has gone up from ¥900 ($132) to ¥1,200 ($176), rising to as much as ¥2,000 ($293) for those who meet new performance criteria. This will involve setting up a fully automated facility in either Taiwan or Vietnam, while the existing Vietnamese plant will be receiving more orders. Chairman Samuel Chen also said that Foxconn will be working with its clients to share the load -- no further details on this, but we suspect Apple's rumored direct subsidies are part of the plan.
Rising labor costs in China may lead to pricier electronics, manufacturing relocation
You might recall that Foxconn, faced with the searing spotlight of the world's attention on its working conditions, recently announced not one but two wage increases for its employees, which is now looking like part of a larger trend in China toward higher pay. The city of Beijing has said it'll be raising its minimum wage by 20 percent, to 960 Yuan ($140) a month, and is expected to be followed by others. The New York Times pins this on numerous factors, including growing competition for workers, state authorities insisting on higher standards, and a national policy effort to ease the gap between rich and poor. All good news, you might think, but these worker-friendly measures are taking their toll on manufacturing costs, and now there's talk of companies relocating production to cheaper locales. Vietnam, India and Indonesia are the prime suspects for taking production duties away from China, with some companies also apparently contemplating shifting to poorer regions within the nation. These changes are unlikely to perturb high-end electronics manufacturing in the short term, due to its more sophisticated infrastructure and supply chain, but the end consumer might still feel their effect in the form of higher prices. Inflation within China and a projected increase in its currency value are likely to drive up the cost of exports, so we'd advise buying what you need sooner rather than later. [Thanks, Daniel]
HP cutting 9,000 jobs during billion dollar enterprise services restructuring
HP isn't being shy about spending cash and taking big steps to reinvent itself lately: it just spent $1.2b on Palm in order to strengthen its consumer device portfolio, and now it's announcing another billion-dollar outlay designed to streamline its enterprise services business and fully consolidate its $12.5b acquisition of EDS. Part of the process will involve laying off some 9,000 workers over several years as HP moves to automate more and more of its data centers and integrate more of EDS, but the company is planning to add some 6,000 jobs in different areas over the same period of time, so the hurt isn't too bad. Taken together with the Palm acquisition, this means that both HP's enterprise and consumer divisions will undergo some radical changes in the next few months -- we'll see how things pan out.
Acti-Blizz restructuring, assigns new executive to Blizzard
digg_url = 'http://digg.com/gaming_news/Acti_Blizz_restructuring_assigns_new_executive_to_Blizzard'; The Los Angeles Times reports that Activision-Blizzard has undergone a significant internal reorganization and elected not to notify investors or the public. The changes were circulated in an inter-company memo obtained by the newspaper and later confirmed by a company spokesperson. The new company map features one business unit focused squarely on the Call of Duty franchise, another overseeing Activision-owned brands such as Tony Hawk and Guitar Hero, and a third unit to handle licensed properties. Blizzard Entertainment rounds out the fourth unit but interestingly, Blizzard's Mike Morhaime now reports directly to newly appointed chief operating officer Thomas Tippl, who in turn reports to Activision CEO Bobby Kotick. "This is an important change as it will allow me, with Thomas, to become more deeply involved in areas of the business where I believe we can capture great potential and opportunity," Kotick said in the employee memo. Check out the original article from the L.A. Times. [Correction: Activision-Blizzard has two primary divisions, Activision Publishing and Blizzard Entertainment. The Activision Publishing arm has reorganized into three separate business units.]
Activision quietly restructures senior management
An article from the LA Times reports that Activision Blizzard Inc. has quietly made some internal changes to senior management and internal organization within Activision: one focused on the military game Call of Duty, another handling internally owned properties like Guitar Hero and the Tony Hawk series, and a third handling licensed properties. Why these changes weren't relayed to investors or the press is still unknown, but it's likely due to the fact that they could be interpreted as a sign of weakness. Activision has seen flagging sales for two of its former cash-cow franchises, Tony Hawk and Guitar Hero, and a recent very public scuffle with Call of Duty creators Jason West and Vince Zampanella following their ejection from their positions as heads of Activision's Infinity Ward studio painted the studio in a negative light with gamers. This kind of restructuring could point to turmoil within the company, an image that an industry juggernaut like Activision would want to avoid. So, what do these changes mean for Blizzard, and for World of Warcraft? Activision got a hold of us to say "nothing at all" -- the restructuring was for Activision's side of the business only. It's important to remember that Activision-Blizzard is an umbrella company that contains two separate divisions: Activision Publishing and Blizzard Entertainment. Activision restructured into three different units, but Blizzard remains independent.
THQ lays off 60, focuses Juice Games, Rainbow Studios on downloads
THQ announced a bit of restructuring today, which means, sadly, layoffs. The publisher announced that it's refocusing Juiced developer Juice Games and MX vs. ATV/Deadly Creatures developer Rainbow Studios for content intended for digital distribution. The studios will be renamed THQ Digital Studios Warrington and THQ Digital Studios Phoenix, respectively. About 60 total staff are being laid off as part of this restructuring. Juice Games was already subject to layoffs in late 2008. The studios will develop games for "all major digital platforms, including Xbox Live Arcade, PlayStation Network, iPhone and iPad" -- so much for WiiWare and DSiWare -- and will also work together on a community platform to be used across THQ's lineup of core games.
Sony 'restructuring' Studio Liverpool
Things sound pretty rough for Sony's SCE Studio Liverpool. Following the merging of Wipeout HD developer Studio Liverpool (formerly Psygnosis) with Evolution Studios, Sony Computer Entertainment announced that it is "restructuring" the studio. According to GamesIndustry.biz, it is currently unknown how many jobs will be affected. Evidently, Sony is looking to relocate staff rather than lay them off, though, as GI puts it, "some redundancies may be necessary." In a statement, SCE said that "production on a number of projects within Studio Liverpool will cease immediately due to project prioritisation," and assured that "this decision will have no impact of the role that the North West Studio Group will play in the future of all PlayStation platforms." Except, of course, for the part of its role that included making those unspecified projects.
ASUS considering closing divisions responsible for LCDs, Eee Stick?
ASUS has seen its share of restructuring over the years, and it looks like it could be about to go through another fairly significant shake-up -- at least if some of the leads DigiTimes has picked up actually pan out. The first (and seemingly more likely) of those is that the company is supposedly considering shutting down its division that builds "opto-mechatronics products" like the Eee Stick, which itself was formed from the remnants of the company's old optical drive department, and has reportedly already seen its size shrink from one hundred team members to just twenty. Potentially even bigger than that, however, is talk that ASUS might possibly be thinking about getting out of the LCD business. Not surprisingly, however, there's even less hard evidence for that -- just some word that the division is facing "fierce competition" that's inflicting some losses. For its part, ASUS is flatly denying that it's considering any such shutdowns -- and don't worry about the Eee PC, it seems that ASUS is actually increasing its investment in that division to develop more Pine Trail-based netbooks.
THQ reorganizes management into three distinct divisions
The "New THQ" keeps rolling forward as the company reorganizes to support three key strategies: Core, "Kids, Family and Casual" and Online. The business units will each have an executive vice president who reports to THQ CEO Brian Farrell.The new alignment certainly makes it very clear whose head goes on the platter when a division is failing. Or, in the more polite words of CEO Farrell, "The new structure specifically aligns our primary business units with our product strategy, enabling each team to focus on planning and execution in highly defined product areas with full profit and loss responsibility." Of course, if all three divisions fail -- which has been THQ's fate of late -- we expect those new branches of the company will be getting a new boss.
Pioneer officially leaving the TV biz by March 2010, focusing on audio
Bad news Kuro fans, the rumors were true and Pioneer is leaving the TV manufacturing business. On the upside, the restructuring deadline is March 2010, so a predicted net 130 billion yen ($1.44 billion) loss shouldn't be enough to get between you and the plasma HDTV of your dreams. The company's U.S. and U.K. plants are shutting down by April and February of this year, respectively, and product development for TVs beyond what's currently on the market is ending, seeing no prospects for improving profitability even after combining plasma efforts with Panasonic and LCDs with Sharp. Overall, there will be 10,000 fewer full time and temporary Pioneer employees than there were at the end of last year, while pay and bonuses for execs have been cut. The future for Pioneer? Mostly car audio, including in-car Blu-ray players and networked electronics, while its home electronics business focus on audio, DJ equipment and cable TV boxes, with a focus on using its expertise in improving sound. All other ugly details are contained in the press release, mourning the passing of another plasma supplier is in the comments.[Via Bloomberg and AV Watch, thanks Carl H.]
THQ announces Q3 results, names new CFO to oversee company's restructuring
As it prepares to act on drastic cost cutting measures, THQ has announced the appointment of Paul J. Pucino as executive vice president and (most importantly) chief financial officer. Pucino is assuming the position -- which was left unoccupied by Colin Slade, who is on "indefinite medical leave of absence" -- effective immediately. The appointment comes in the wake of THQ's Q3 financial report, in which the company reported a net loss of $191.8 million for the three months ended December 31, 2008. $70 million in cuts to product development for fiscal year 2010 are planned as the publisher attempts to remain afloat.Source - THQ Appoints Paul J. Pucino Executive Vice President and Chief Financial OfficerSource - THQ Reports Fiscal 2009 Third Quarter Result
Report: Stringer wants Sony focusing on software, 'old guard' resisting
Sony is reportedly planning to announce details of a restructuring scheme soon, confirming its first operating loss in 14 years. According to previous reports, the manufacture consider closing plants and, possibly, whole divisions. According to the Financial Times, Sony CEO Howard Stringer is facing serious resistance from the 'old guard' in Japan to fix (or save, depending on your perspective) the company. Certainly one of the more interesting pieces coming out of the alleged plan is Stringer's goal to shift Sony's focus from hardware to software. If true, the PlayStation brand, along with Sony Computer Entertainment, would presumably be the main benefactors of such an upheaval.Source - Sony to announce restructuring details soon: FT (Reuters)Source - Stringer battles Sony 'old guard' ... (FT.com, registration required)
Logitech axes 15% of salaried workforce as it restructures
Logitech may be bringing the heat at CES, but that doesn't mean it's not feeling the pinch. Alongside a few new pieces of kit, the outfit has also announced that it will be undergoing a serious restructuring as it moves forward. According to president and chief executive officer Gerald P. Quindlen: "During the December quarter, the retail environment deteriorated significantly, and moreover, we expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn." Sadly, those "actions" involve sending home some 15% of its salaried workforce worldwide, and it's expecting the savings from all of this to show in Q1 of fiscal year 2010. Ouch.
EA details restructuring plan, laying off 10% of employees
Sad news from EA: The company plans to lay off 10% of its workforce, representing about 1,000 jobs, by March 31, 2009. The new figure represents a 4% increase from the previously stated layoffs announced in October. EA's restructuring plan, which also includes "consolidating facilities," is expected to cut annual costs by $120 million.Nine studios and publishing locations will be closed by the company, including Black Box Studio (Need for Speed) in Vancouver, British Columbia, which will move its remaining staff to EA's studio in Burnaby, BC -- the company recently killed plans for a third Canadian studio. The publisher also states it plans to focus on hit games with "higher margin opportunities." Although EA claims it's "committed to taking creative risks," there's nothing more that gamers gobble up like a good sequel ... year, after year, after year.
Axe falls again at AMD, 500 more employees laid off
Merely seven months after AMD hacked 1,600 employees from its roster, we're seeing 500 more head for the exits. The latest round of layoffs at the Sunnyvale-based chip maker amounts to 3% of its global workforce, and according to spokesman Michael Silverman, the "headcount reduction is part of the company's efforts to reduce [its] cost structure." The firings come a month to the day after a breakup was announced, and they'll affect every division of the company save for the manufacturing operations -- which are, in fact, precisely what's being spun off. Just another day in paradise, eh AMD?[Via MarketWatch]
John Smedley comments on the SOE/SCEI marriage
The other day, Sony Online Entertainment announced that it would begin reporting to Sony Computer Entertainment, Inc. to expedite efforts to produce online content and features for the PlayStation 3. WarCry tracked down SOE president John Smedley for comments on the move. The jist of it is that nothing within SOE will change; the move just makes it easier to coordinate the company's PS3-related projects by allowing Smedley and Kazuo Hirai (who's in charge of everything PlayStation) to work together more closely. "Being part of the PlayStation family is exciting and offers us a lot of great opportunity," Smedley said. But opportunity for what? Are announcements of new PS3 titles forthcoming from SOE? Obviously this move is the start of a longterm investment of SOE's time in the PS3 (and maybe even the PS4), but what specifically will come of it? We're anxious to find out.
Is Sanyo selling off its mobile phone division?
According to recent rumblings, Sanyo Electric is seriously considering cutting its mobile phone operations loose, and is apparently in talks with a number of competing manufacturers about purchasing the ailing line. At the top of the "interested parties" list are Sharp and Kyocera, well known phone-makers hoping to pick up the company's under-performing slack (which currently constitutes about 15 percent of Sanyo's overall sales). The news comes as little surprise, given the current restructuring scramble Sanyo is attempting after a whopping 72 percent drop in operating profit in recent months. Phone sales for Sanyo are now expected to fall 1.5-1.6 million short, according to the company, which has posted a net loss for the past three years and is rumored to be selling off its semiconductor operations. At this rate, there may be dark days ahead for the Japanese giant.
Samsung 'restructuring' handset division, hints at Armani partnership
In the wake of increased competition from Motorola and Nokia in particular, Samsung is reportedly "restructuring its handset division," which will aim to find "new sources of revenue, realigning businesses, and cut costs." As expected, the move will also involve a number of "personnel reshuffles," but a Samsung spokesman was quoted as saying that there won't be any "forceful" job cuts. Interestingly, we're hearing further details that the firm is indeed courting the idea of partnering with "luxury name brands such as Italian fashion house Armani to develop premium brand phones," and considering just how hot avant-garde mobiles have been of late, we certainly don't think that's a bad idea.[Via JustAMP]
