Mythic layoffs dishonest

Marc Jacobs, Mythic Entertainment CEO. Would you buy a used car from this man?
So I saw Scott’s post today on Mythic layoffs. I pointed out recently that Mythic might justify layoffs by stating that MMO development life cycles require staff to be let go as games ramp down and settle into a maintenance mode. My prediction came true and Mythic’s official comment reads almost like the post I wrote over two weeks ago:
With respect to customer service, quality assurance and play testing, prior to the launch of WAR, we hired additional people to deal with the rush of demand associated with an MMO launch and to insure the best possible experience for our players. We accomplished that goal and as a result we had the smoothest-ever launch of a major MMO. Since the launch last year, the demand for customer service has gone down as players become more familiar with the game. Obviously, demand for a large QA and play-testing staff also falls after launch. As a result, we saw a staff reduction which is in line with the company-wide initiative.
I almost want to accuse Marc Jacobs, Mythic CEO, of plagiarism. But I’m tired of being glib. Layoffs have stopped being funny a long time ago.
One thing I’m pretty sure of though is that Mythic’s layoffs had very little to do game life cycles. If the layoffs are indeed the result of not needing the extra staff because the launch is finished, why didn’t the layoffs come sooner? It’s been months since Warhammer was released. That actually even seems like a sound business decision since you’d have less staff to pay for heading into your quarterly financial report.
No, the layoffs happened because parent company EA was not profitable enough. It’s disingenuous to say otherwise.
And EA seems to have no compunction of punishing divisions within its company that do well in the market place. They’ve even cut staff at EA Tiburon, the makers of Madden 09, which happened to be only the ninth best selling title of 2008.
I’m not sure if Marc Jacobs decided to sugar coat the layoffs himself or was forced to by his bosses. Either way, it’s a dick move and disrespectful to the people who worked for him.
EA: Bowl party > employees
John Gaudiosi of GameCulture.com posted today about his experience at the Madden Bowl, the annual post Super Bowl party hosted by Electronic Arts. Mostly, his reaction was a lot of gushing about the “unprecedented access” to NFL players and being a part of the “hottest party in town.” I don’t blame him. Who wouldn’t like to rub shoulders with NFL celebrities, hang with the beautiful people and have an excuse to play video games all in one roof. It’s a sports geek’s ultimate fantasy.
However, as much as I understand John’s enthusiasm, I can’t help but wonder at some of his comments about EA Tiburon. According to John:
EA Tiburon could have just sat on its laurels and churned out anything. But Madden NFL 09 really stood out as one of the best games of last year – and it also remained one of the best-selling games of the year.
Sure, EA Tiburon was so good at making Madden that the parent company layed off a chunk of the development staff. How’s that for a reward?
I understand that business is business and sometimes you have to make unpleasant choices; however, the timing of the layoffs (in mid January) and the post Super Bowl party can’t be worse. While, the EA executives are rubbing elbows with NFL stars, the developers at EA Tiburon feel lucky to even have a job. In this environment where the public is a little sensitive about corporate excess, how can this party be seen in a good light? I wonder how much EA spent on this event? How many developer jobs would it have saved if they had decided to forgo the party and opt for something less expensive? Strange that these sort of thoughts rise unbidden to my mind.
Yes, I know that Madden Bowl is a huge marketing bonanza. It fuels hype and many reporters, like John, are invited to these events to spread the word about the buzz. It’s a carefully machinated event that seems (at least to this outsider’s perspective) as much scripted as spontaneous. I also know that EA will justify the party expenditure by saying that the marketing provided by the Madden Bowl will actually save EA jobs by making sure that sales of the franchise remain strong.
Am I simply being a sourpuss for faulting people for having a good time while also marketing their product? And is it unreasonable to link the layoffs to a marketing event that was planned for months in advance and has become part of the established post Super Bowl festivities? Presumably, that would be the opinion of the EA executives who were there at the party who also undoubtedly had a role in the layoffs at Tiburon.
I guess then that I don’t have what it takes to be a game company executive, at least not at EA. Concepts like loyalty, sensitivity, and rewards for performance still have meaning for me.
EA: bozo move of the year
So what do you do when you’ve fired much of the development team of Madden 2008, the ninth best selling game title of the year? Well, if you’re Electronic Arts, you hold a lavish Super Bowl bash to market the game and celebrate its success. Anyway you look at this, that’s a dick move. Let’s take a look at this situation.
- EA Tiburon was responsible for producing Madden 2008
- Madden Football 2008 sold over 5 million copies
- EA reports a $310 million quarterly loss in October 2008
- EA announces layoffs and, in a strange twist of logic, lays off staff at EA Tiburon and Mythic Entertainment, who by the way, is responsible for the only other significant hit from EA, Warhammer Online.
- EA continues with business as usual for the Superbowl since it’s an excuse for EA executives to hobnob with NFL celebrities
The year is young, but I hearby nominate Electronic Arts and its executives as the biggest bozos of the video game industry. And if by chance any EA executives are reading this, I really hope you enjoy the party you funded on the backs of the developers you just layed off. I’m sure you’re real proud of yourselves.







