EA Takes Bite Out of Tiburon Studio

An article from the Orlando Sentinel states that EA, the company behind mega-franchises “Madden,” and “Tiger Woods PGA Tour,” will be trimming the workforce at their Tiburon studio.

This news comes as a bit of a surprise, despite EA earlier announcing that 10% of all their employees would be laid off. Tiburon studios are the powerhouse behind many of EA’s cash cow sports franchises, and it was thought that employees at the Tiburon division would be safe from the recession’s long, unapologetic arm. While he would not mention an exact number, EA government affairs chief, Craig Hagan, told the Sentinel that a number of the studios 650-700 employees have been let go, but also went on to state that the cuts would not greatly affect their productivity.

Also feeling the effects of the recession are Sega, which announced that they would be letting go of 30 employees from Sega of America. An email from a SoA representative stated,

“Sega of America has grown at pace with the booming videogame industry, but at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success. The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavors.”

There was a time when many industry experts seem to think that the video game industry was recession-proof. Sadly, this is not proving to be the case. While game sales may continue to remain strong, production and development prices remain high. Keep an eye on the next year gamers, as EA and Sega join other companies like Midway, and Sony in cutting jobs. You would think so many lay-offs would be noticeable somewhere down the line, despite almost all of the previously mentioned companies promising that quality will not be sacrificed. I guess only time will tell, but all we can do as gamers is to keep playing games and support our industry in this universal time of financial disappointments.

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