Rumor: EA Closes PopCap Vancouver, EA Partners - UPDATED

[Andy Chalk]

Rumor: EA Closes PopCap Vancouver, EA Partners - UPDATED

[tweet t=https://twitter.com/Palle_Hoffstein/status/327481466491633666]​

The word on the street is that the plug is being pulled on Electronic Arts' publishing service for independent developers, while Quicklime Games and PopCap's Vancouver studio are no more.

The EA Partners program is a publishing and distribution channel for third-party developers and over the years it's led to deals with studios including Crytek, Epic Games, Double Fine, Valve, Grasshopper Manufacture and more. But according to "multiple anonymous sources close to the matter," it will soon be shut down, presumably as a result of the deep cuts that have swept across EA since the resignation of former CEO John Riccitiello.

Meanwhile, based on a Palle Hoffstein [https://twitter.com/Palle_Hoffstein/status/327481466491633666], EA has also shutdown PopCap Vancouver and Quicklime Games, the co-developer of Need for Speed: World.

EA hasn't yet confirmed the closures but posted an "organizational update [http://www.ea.com/news/ea-organizational-update]" message on its blog today acknowledging the "hard but essential changes" that have taken place. "In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile. This has led to some difficult decisions to reduce the workforce in some locations," it says. "We are extremely grateful for the contributions made by each of our employees - those that are leaving EA will be missed by their colleagues and friends."

The drastic cuts that have fallen upon the company in recent weeks may well be necessary, but they're still unfortunate for those affected. We've contacted EA for further information and will update as it comes available.

Source: Game Informer [http://www.gameinformer.com/b/news/archive/2013/04/24/ea-partners-facing-closure.aspx]

UPDATE: EA has declined to disclose numbers or which teams have been impacted by the cuts, saying only that today's statement "addresses cumulative changes made through today."

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[Fappy]

EA's girth is getting the better of them. I wouldn't be surprised if these cuts continue and EA ends up downsizing and focusing all of their efforts on a specific demographic. I'd have thought a multimedia conglomerate would have bought them out by now, but considering how poor their stock's doing I don't really blame anyone from staying away.

Hopefully this ends soon. As much as I feel the industry needs to undergo a big change, it always sucks to have studios close and people lose their jobs.

 

[Absolutionis]

It's hard not to feel sorry for the victims that got laid off, but it's also somewhat their fault for knowingly staying in such an abusive relationship. On the bright side, they're finally free.

 

[Adam Jensen_v1legacy]

EA is on the roll. I don't see how shutting down a third-party publishing service will benefit them.

 

[CriticalMiss]

In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile

So that involves firing loads of their mobile developers? Just what are you up to EA? This is probably more interesting than any of their recent games. It could be a bold new direction in the games industry that involves making no games but instead assimilating studios then firing them without reason.

 

[faefrost]

I'm thinking that EA's financials are in much much worse shape than anyone is really suspecting. These sudden waves of unexpected closures and layoffs without the usual gradual business foreshadowings. The sudden retrenchment and total overnight abandonment of entire swaths of the industry. Even somewhat successful ones. I'm thinking somebody got a look at the books and is now panicking. It's one thing to trim the fat, prop up the share price, shut down unsuccessful experiments or simply stop the bleeding from things that they paid too much for ($200 million for a social game company?), but this feels strange. This feels like someone is suddenly finding unexpected exposure and risk somewhere. Start watching the shareholders, and keep an eye peeled for any legal action from them.

I'm thinking their MMO's take the next hit.

 

[Entitled]

*dances around with unereasable grin on face*

 

[Colt47]

The same is likely going to happen to Blizzard Activision at some point down the road if World of Warcraft ends up puttering out, which from my perspective it seems to be doing at a rather steady pace. Even I'm switching away from the game now and I've played it since it was released in 2004.

 

[VincentX3]

EA: GeE! I wondr why were dur wor1st company in 'merica!? WE C4N DO BTAR!
-Closes down POPCAP-

Me: *Facedesk*

 

[mad825]

Cannot be too surprised, apparently there are development offices in Canada that are reaching towards the end of tax breaks that were given to boost the industry. Canada itself is facing a bust from the gaming industry because of this.

 

[-Dragmire-]

EA's girth is getting the better of them. I wouldn't be surprised if these cuts continue and EA ends up downsizing and focusing all of their efforts on a specific demographic. I'd have thought a multimedia conglomerate would have bought them out by now, but considering how poor their stock's doing I don't really blame anyone from staying away.

Hopefully this ends soon. As much as I feel the industry needs to undergo a big change, it always sucks to have studios close and people lose their jobs.

Maybe after seeing THQ go down, potential buyers are waiting for EA to fall apart so they can bid on bits and pieces of the company.

If EA does fall apart, I'm guessing it'll be a very slow fall. I imagine they still have plenty of chances now to correct themselves before their investors want to bail with paychecks from liquidation.

 

[Nowhere Man]

Remember that movie "The Neverending Story" where the hero Atreyu has to contend with the sinister force of the "Nothing" which is basically a representation of human greed and power that consumes and destroys everything it comes in contact with? Yeah that's what EA reminds me of.

 

[grammarye]

What's a new CEO to do to make it clear they're going to make EA profitable? Well, cuts of course!

I feel for those who are losing their jobs, I'm not sure the actual move strikes me as the right one (but what do I know..), but it's very common practice for a new CEO to try to 'make their mark' and show shareholders they're taking action (often, any action).

EA's focus has always been short-term financial return, and what better way to show shareholders that you're taking swift decisive action than a good old 'reorganisation & strategic reduction of inefficiences'. In fact, a new CEO probably can't not take clear action and re-align the business, or they then have to answer the question 'so what are you doing to change things?'.

Their biggest sales still appear to come from FIFA, Sims, and Battlefield. Anything else is genuinely marginal by comparison and potentially expendable. It sucks, it truly does, but that's the harsh reality of these large corporations.

 

[Kargathia]

The same is likely going to happen to Blizzard Activision at some point down the road if World of Warcraft ends up puttering out, which from my perspective it seems to be doing at a rather steady pace. Even I'm switching away from the game now and I've played it since it was released in 2004.

That particular scenario only looms if multiple large releases (such as the fabled Titan) crash and burn. World of Warcraft is on the decline, so they're simultaneously extending its lifespan, and working on a replacement that will be announced right about when WoW goes on life support.

EA, on the other hand, already has had multiple costly failures. Generally not because games sold badly, but because they threw so much money at them they needed to sell like hot cakes set on fire. Dead Space 3 and Sim City are probably the best illustrations of this. There already was the hooplah around them actually coming forward and saying Dead Space 3 needed to sell 5 million copies, and by a rough estimate of development costs I'd wager that Sim City barely broke even so far.

Then there's always the outright failures such as MoH: Warfighter. That didn't do their bottom line any favours either.

 

[GAunderrated]

Since EA has been able to make it to the news every week for the past like 6 months (99% bad news) I can't say I am surprised to see the life slowly leaked out of them.

 

[Yopaz]

It's hard not to feel sorry for the victims that got laid off, but it's also somewhat their fault for knowingly staying in such an abusive relationship. On the bright side, they're finally free.

You know when someone buys your company you don't really have a say when it comes to this. EA owns PopCap, it's not a relationship they control, they can't leave as long as EA owns them.They could probably buy their company back, but that wont happen with a relatively small company like PopCap.

 

[FalloutJack]

Remember that movie "The Neverending Story" where the hero Atreyu has to contend with the sinister force of the "Nothing" which is basically a representation of human greed and power that consumes and destroys everything it comes in contact with? Yeah that's what EA reminds me of.

"People without imagination are easier to control."

Damn, good point!

However, with everything pushing in on nothing, soon there will be nothing LEFT of nothing, so it'll be...something. And then, we'll be able to use a DIFFERENT quote on EA.

"Hail Eldrad! King...of nothing."