ETC Slash and Burn of Videogame Publishers Continues

Bloomberg news reports game publishers Electronic Arts and THQ will cut jobs and close multiple studios. Publisher Midway will cut 25 percent of their workforce.

While many analysts are spouting off about the utter solidity of the videogame market, the bottom seems to be falling out for U.S. videogame publishers. And as we just reported, Factor 5 and Free Radical have gone to the dustbin as well.

Electronic Arts Inc., the second biggest videogame publisher, will cut 10 percent of their workforce and close and/or consolidate nine studios. THQ Inc. will close five studios and cut 250 of their employees. Midway Games Inc. will eliminate 25 percent of their work force. What is clearly a trend is alarming, but the companies are already thinking of ways to adapt to the new marketplace.

The sure fire cure : produce less titles. Of course this could spell disaster if the fewer titles were not of high quality and didn't approach genres with equal care.

"EA, and indeed the entire industry, needs to rationalize their product line-ups," said Todd Mitchell, a New York-based analyst with Kaufman Bros. "There are just too many games. Not every publisher needs to be in every genre."

Posted on 22-12-2008 by LesThom


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