Officials from Digital Illusions CE (DICE) have confirmed that the company is to close its New York office, which houses the recently acquired Trauma Studios.
Trauma was
purchased in September 2004, after gaining acclaim for its
Desert Combat modification for DICE's
Battlefield 1942 multiplayer PC title. At that time, the acquisition sum of $500,000 was agreed, with $300,000 being paid upfront and the remaining $200,000 due as a supplemental payment in 2006. This sum will not now be paid, although DICE will make a default payment of 1.3m Swedish Kronor ($0.17m) in the second quarter of this year.
DICE would not give any specific reasons for the closure, saying only that the conditions and the future plans of the company now differ considerably from last September - it's likely that this refers to the
controlling interest that publisher Electronic Arts now has in the company. All twelve Trauma employees will be offered employment at DICE's head office in Stockholm.
CEO Patrick Sderlund has indicated that the main focus of growth will now be on the company's Swedish operations, although the company's remaining Canadian office will continue to function as a satellite studio - working on new game concepts and expansion packs using existing technology developed in Sweden.
The company also announced that it will continue to outsource "elementary graphic services" to companies in Eastern European countries such as the Ukraine, in order to take advantage of cheaper labor costs.
