News
Studios and projects face the axe after Activision Blizzard merger
Michael French Jul 16 2008, 3:40pm
Comments (3)
'There will be a number of people at Vivendi Games who are going to be terminated,' says COO
The merger of Activision and Vivendi will mean that some of its overlapping projects and studios will be axed, the new publishing giant has confirmed.
Earlier this year chiefs at the two firms initiated an internal review of staff and projects - with some operations staff re-interviewing for jobs and developer asked to re-pitch in-the-works proejcts.
Speaking to Variety, Activision Blizzard CEO said that projects which 'don't meet requirements' will most likely be dropped.
He said: "We have a very good view into which products are going to have the prospects for profits that we look for.
"Which ones have the margin potential that is important to us, which can be sequelled, which have worldwide distribution potential... If projects or business units don't meed our requirements for return to our shareholders and our profitability and operating margin targets consistent with our historical performance, they won't likely be retained."
Bruce Hack, former Vivendi head and now COO at Activision Blizzard added that "there are some very good assets that may not meet the hurdle" and those projects could be "divested or closed down."
And it seems likely that the cuts will be seen predominantly across the Vivendi Games portfolio of studios, which includes the likes of Swordfish, Radical, High Moon and Massive, and its corporate staff.
"We are in large part using the Activision organization as a backbone," said Hack, who Variety said is leading the process of integrating the two companies.
"We will strengthen that backbone with employees and processes from Vivendi Games. At the same time, there will be a number of people at Vivendi Games who are going to be terminated."
No decision has been made on what may stay and might not, however - although staff will be notified in 30 days.
Comments
“Terminator”
Posted by: Blarg - Jul 16, 4:10pm
"At the same time, there will be a number of people at Vivendi Games who are going to be terminated."
What a fabulously ironic turn of phrase. Hmm, I'm going to announce some sweeping redundancies across two companies I'm merging. But how will I break the news? I know - I'll make it sound like I'm going to put all those at risk to a firing squad! Well done.
“Re: Terminator”
Posted by: m - Jul 24, 2:36am
First off, these are very un-professional words coming from Mr.Hack. I know it's inevitable that there will most likely be lay-offs, but he didn't have to sound so cold and heartless about it, especially when he's putting stress and questional thoughts to everyone that is now part of Activision.
“Re: Re: Terminator”
Posted by: Wiredinstructor - Jul 24, 4:36pm
Mr. Hack's name seem particularly appropriate for a hatchet man. As game moguls re-arrange the deck chairs on the Titantic, the mega game industry is headed for ruin. Projects that take years to develop and millions to bring to market at 60 bucks a pop have a shelf life of a week or so? That's a business?