Kim Jong ilI’m fairly sure that I’m not the only one who feels like the world is going off the rails these days. Global recession, global warming, religious radicals, Kim Jong Il, Balloon Boy, Carrie Prejean self destructing on CNN Larry King Live – and now video game developers in Vancouver and around the world are being scorched by a firestorm of layoffs.  Echoing inside Doctor Arkanoid’s massive cranium, I hear the lyrics from the famous Phil Collins song ‘Land of Confusion‘:

Ooh Superman where are you now?

When everything’s gone wrong somehow.

The men of steel, the men of power,

Are losing control by the hour’.

On November 9th, the Reuters news agency reported that Electronic Arts announced a major round of layoffs affecting 1500 staff worldwide, including 900 game developers, 500 publishing support staff, and 100 administrative staff, with the Burnaby Studio being significantly affected. This is the EA mothership’s second major round of layoffs. In January, 1200 staff were laid off, including the closing of Black Box Studios, creators of the Need for Speed series. Reuters also reported that EA recorded its 11th straight quarterly loss for the period ending in October, 2009. This news attracted the attention of CBC Radio, who invited the good Doctor to provide a diagnosis of what’s currently happening in the video game industry.

CBC Radio EA Layoffs

EA isn’t the only Vancouver video game developer to lay off staff and close studios in 2009. Most people didn’t know that the cell phone giant Nokia established a game development centre in Richmond several years ago for the NGage portable media player. Nokia folded its operations and laid off 100 staff. With the merger of Activision and Vivendi Games into Activision – Blizzard in the fall of 2008, Radical Entertainment dismantled two of its four game teams, laying off 120 people. The South Korean game company Nexon, creators of the online game Maple Story, shut down their Nexon Human Nature Studio run by Alex Garden, former co-founder of Relic Entertainment. 90 people were laid off. Walt Disney’s Propaganda Games let go of 36 staff. Backbone Entertainment was closed, Hothead Games laid off staff, Relic Entertainment let people go, and Microsoft’s game studios in Redmond, Washington released several hundred people as part of an overall staff reduction.

According to the Canada Entertainment Software Industry Report released in March, 2009, there were approximately 5,842 game developers working for 61 game companies in British Columbia. While it’s hard to say exactly how many unemployed game developers are looking for work in the Lower Mainland, the Doctor is fairly certain that between 1500 and 2000 creative, talented individuals are anxiously seeking new opportunities. In fact, I was contacted this past week by two former game development students I worked with at the Art Institute of Vancouver. Both of them were recently laid off and trying to find another position with a game company.

In Hollywood, they say you’re only as good as your last movie. In Vancouver, you’re only as good as your last profitable video game.

Take it away, Phil Collins:

Doctor Arkanoid Doctor Arkanoid

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