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EA Memo Confirms Pandemic Consolidation, Van Caneghem Hire
by Leigh Alexander
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November 17, 2009
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Mercenaries developer Pandemic is to close its physical doors in Westwood, with a core IP team consolidated into Electronic Arts' EA Los Angeles studio -- although its brand and franchises will continue.
According to an internal memo obtained by Gamasutra, Pandemic founders Josh Resnick, Andrew Goldman, and Greg Borrud will leave the company. "A reduction in the work force at Pandemic" is being reported elsewhere at around 200 employees, with the remainder of the Pandemic team reporting to EALA's Sean Decker at the company's Playa Vista offices.
The cuts are part of a new round of layoffs and restructuring EA recently announced as its second fiscal quarter saw its losses widen to $391 million; the publisher plans to cut 1,500 jobs by April 2010.
EA says the studio consolidation is intended to "accelerate our transformation to a direct-to-consumer digital model, and to better manage our cost structure."
Under the new model, EALA will become a "showcase for the 'fewer things better'" initiative, the memo continues, describing a "a re-invention of the Medal of Honor franchise with a new design that is simply stunning."
It's also noted that Might and Magic creator Jon Van Caneghem, who recently "transitioned out" of his role as president of Trion World Networks, has joined EA to lead the Command and Conquer brand with "a new digital model that is going to re-ignite the fan base for this franchise."
"I want to make it clear that the Pandemic brand and franchises will live on," writes EA SVP Nick Earl in the internal memo. "In the months ahead, we will announce plans for new games based on Pandemic franchises."
Electronic Arts acquired Pandemic in October 2007, as part of its roughly $800 million acquisition of parent company VG Holding Corp, netting BioWare in the same deal.
Pandemic has been a frequent target of closure rumors since the first round of deep staff cuts and restructuring hit EA studios last year. It has been developing Saboteur, the World War II title on whose status EA has remained largely quiet in recent months, but is apparently due out on December 8th.
Similarly, EALA has also faced media scrutiny since the cancellation of its Tiberium project due to quality issues; its Medal of Honor: Airborne was also a high-profile disappointment. EA Games boss Frank Gibeau told Gamasutra late last year that the publisher has "high expectations" from the studio.
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@Eric - of course they were a success, that's why EA purchased them. EA loves killing competition by buying them. Microsoft did it years ago.
EA is a corporate PIMP
So I was interested when Electronic Arts finally announced a similar strategy recently. They are canning a load of games in various stages of development and will in future be concentrating on its successful franchises – Need for Speed / EA Sports / Battlefield/ MoH etc. Whilst it’s bad news for the 1,500 EA employees given the bullet it clearly proves the future of the industry is in leveraging off successful brands and on as many platforms as possible. So less games for all but maybe there’s a positive in that the indie games sector will grow instead. That idea a greasy oik has that EA might have once bought in the good ‘ol days will now have to make its own way to market. At least there are now some relatively pain free routes to market via digital download like Steam.
I don't know the circumstances behind it, but Battle for Middle Earth did very little to help their case. That game was in the wrong generation.
Best of luck to all the Pandemic people (who probably anticipated this since the acquisition).
They lost lots of money, and realized going with strong franchises is better. It will be good for their baseline, but very bad for the industry.
They lost lots of money, and realized going with strong franchises is better. It will be good for their baseline, but very bad for the industry.
For everyone in this thread who doesn’t have a clue. Pandemic was doomed before the E.A. buy out. Second John R sold himself his own company with no plan to keep Pandemic open. He was partners in an Investment Company VG holding who bought out Pandemic and Bioware in 2005-6 for somewhere in the 300-400 million. He then got hired back to EA as CEO in 2007, and then convinced shareholders to buy out VG holdings, ala Pandemic and Bioware for 800 million.
Also business wise it’s not profitable to have Pandemic studio and EALA studio open, and pay 2 HUGE rents. Close one and integrate, simple.
John R. is my favorite business man. :)
Found this after my posting.
http://www.marketrap.com/article/view_article/91171/outrageous-electronic-arts-i
nc-ceo-riccitello-buys-his-own-company-and-closes-it-down-two-years-later