Activision Lays Off 30 at Former Scratch Studio

Andy Chalk

One Flag, One Fleet, One Cat
Nov 12, 2002
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Activision Lays Off 30 at Former Scratch Studio


Roughly 30 people have reportedly been laid off from Activision [http://www.sevenstudios.com/] acquired earlier this year.

Layoffs, while unfortunate, are nothing new or unusual, especially in the current economic climate. But this one bears a mention, if only because of the inevitable conspiracy theories which will undoubtedly spring up around it. Some background: Prior to its acquisition, 7 Studios was developing a game called DJ Hero [http://www.scratchvideogame.com/], which comes out later this month. Activision apparently attempted to buy the rights to the game and when that failed, it bought 7 Studios instead.

This of course spawned allegations of shenanigans, as the deep-pocketed Activision appeared to be buying the studio only so it could kill Scratch and have an unimpeded run at the DJ music game market. Activision protested, saying it had done nothing wrong, an assessment shared by the Los Angeles Superior Court in its ruling on a lawsuit brought by Scratch DJ Game LLC partners Genius Products and Numark Industry. Nonetheless, 7 Studios was ordered to hand over the Scratch source code [http://www.escapistmagazine.com/news/view/91122-Activision-Ordered-to-Return-Scratch-Source] to its original publisher, which it had initially refused to do, and "wall off" game-related information and "trade secrets" from other companies, including Activision.

But the feeling that hijinks were afoot never really went away and the news that Activision has now cut about 30 people from the 7 Studios payroll, which represents roughly half of the developer's entire staff, isn't going to help. Activision, of course, denied that anything untoward had taken place. "Since the completion of its acquisition by Activision, 7 Studios has realigned its business to focus its development resources on the music genre," the company said in a statement to Kotaku [http://kotaku.com/5375706/activision-subtracts-from-7-studios-hits-ex+scratch-dev-with-layoffs]. "As a part of this realignment, the studio is reducing its workforce to better reflect Activision's upcoming slate of music-based games."

I don't think it's particularly likely that Activision went to all this trouble just to put the boots to a single competing product; this kind of housecleaning is commonplace at newly-acquired companies. But optics are everything in situations like this and I think we can all agree that these optics just ain't good. Work continues on Scratch: The Ultimate DJ, meanwhile; following Activision's purchase of 7 Studios, the project was taken over by Commotion Interactive [http://www.commotioninteractive.com/].



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Terramax

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Jan 11, 2008
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I swear Activision are activily trying to be the most hated game developer/ publisher in all the land.
 

Ranooth

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Mar 26, 2008
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Malygris said:
As a part of this realignment, the studio is reducing its workforce to better reflect Activision's upcoming slate of music-based games.
Please god let that mean their making less of these evil evil things!
 

SaintWaldo

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Jun 10, 2008
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The appearance of conflict is usually equal to an actual conflict, and should always be avoided. If they were acting in good faith, Activision should have never allowed this portion of the acquisition to remain. Spin the stuff off, period, pun intended. As it stands, Activision is fast becoming the new EA IMO. Wow, I actually just said that, and meant it.
 

SaintWaldo

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Jun 10, 2008
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mrfft said:
As has been said since earlier this year, Activision is the new EA.

Yay hi-jinks!
Yeah, I said it. And I just said it again. I just didn't realize YOU said it too. ;)
 

samsonguy920

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Mar 24, 2009
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So what is the game about anyway? Trying to pick the right song for your party-goers? Wow, sounds exciting. Wouldn't be surprised if Activision gives this a month more development, then cancels it, announcing 7 Studios is going in a new direction: The door. Don't let it hit your rear on the way out.
 

bue519

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ForgottenPr0digy said:
I still think EA is worst(EA LA made rising sun)

but what activision does seem kinda underhanded to mee at least
Like how they sued Brutal Legend developer cause they thought it might impact their sales of music based games. Even though ones an adventure game and the other is a rhythmic game of simon says.
 

Macguffin

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Apr 25, 2009
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A good bit late to this thread, but Andy - "this kind of housecleaning is commonplace at newly-acquired companies"? Laying off 50% of your devs? That's a bold claim with no backup; in my experience, you lay off half your developers and you'll do a great job of ripping out the soul of your company.