Crispy Gamer News

It’s a scary thing when the game industry’s theme song seems to be Queen’s “Another One Bites the Dust”, but if the early word coming out of the UK this morning is any indication, that may just be the case. Sources are reporting that employees at TimeSplitters and Haze developer, Free Radical Designs, were greeted this morning with a locked office and a note directing them to a business meeting at a nearby hotel. Add to that reports that many of the company’s senior executives have already taken off, and it looks like the game industry is about to add one more name to the list of casualties.

It’s been a rough patch lately for Free Radical. The company’s last game, Haze, took a pounding both critically and commercially. And despite showing off a round of conceptual assets for TimeSplitters 4, in early October, development on the latest entry in the popular FPS series had ground to a halt. Finally, the company’s biggest project, a “secret title” announced back in 2006 as a joint effort with LucasArts, has apparently been handed over to another development studio.

Official word has yet to come direct from Free Radical on whether or not the company is on life support or if it’s pulling the plug altogether. Either way, it’s one more bit of bad news spotlighting the financial troubles being faces by the video game industry, and by business in general, in today’s economic crisis. Sony, EA, Eidos, Midway, and Activision have all already reported major layoffs this year. It’s almost enough to make gamers wonder just who’s next on the chopping block.

You remember what they say about real estate? It’s all about three things: Location. Location. Location. That’s the first thing that came to mind when we got word today that Codemasters had reached a deal with Activision Blizzard to buy UK-based developer, Swordfish Studios. If you’ve got that odd sense of déjà vu, you’re not alone. Earlier this week, we reported that developer Monumental Games had also acquired Swordfish from Activision Blizzard. No, this isn’t a case of double dipping, and yes, both news bites are correct … it’s just a matter of location.
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Earlier this week rumors started brewing that THQ was shuttering a number of its studios. Today, those rumors were confirmed, as THQ announced its financial results for the second financial quarter of 2009.

Along with the closure of five studios from the company’s stable of sixteen, THQ also reports it also announced layoffs of 250 members of its developmental personnel, roughly 17 percent of the total studio staff. The company also recorded net sales of $164.8 million for the quarter, compared with $229.3 million in the prior year. Overall for the quarter, THQ stated a total loss for the quarter of $115.3 million. The company cited a lighter slate of new releases as a major reason for the losses.

THQ outlined its plans for restructuring, which included pushing both Red Faction: Guerilla and Darksiders: Wrath of War from a projected Q4 2009 release well into the 2010 fiscal year.

“We have made substantial progress in improving product quality and innovation, as evidenced by recent shipments of several well-reviewed games including de Blob and Saints Row 2,” said Brian Farrell, THQ president and CEO. “We are aligning our business to be more competitive in key consumer segments and address the current business environment. We expect the combination of a much more focused and competitive product line with a more efficient cost structure to put THQ back on the path to growth and profitability in fiscal year 2010.”