NCsoft Confirms Austin Layoffs

KZaske

KZaske

Jungle Guide

Join Date: Jun 2006

Boise Idaho

Druids Of Old (DOO)

R/Mo

Heres the article link: http://www.gamasutra.com/php-bin/new...hp?story=19834.

Here is the meat of the story:
Quote:
"The developer-publisher, known for titles such as Guild Wars, Dungeon Runners and Tabula Rasa, told consumer blog Kotaku that widely-reported media rumors of layoffs at the offices were true.

"Primarily this is related to products which we have not previously announced and were in prototype phases," an NCsoft spokesperson told the site.

NCsoft said, however, that it's also cutting staff from the Dungeon Runners team following a decision not to port the client to other platforms "at this time.""
I find myself wondring if this will have any effect of the server farm. Yeah I know they say it related only to un-announced products, but honestly considering how many half truths we have heard from them recently do you really believe it? For me, It is my hope we don't see an increase in lag.

Edit: More NCsoft news
Source: http://www.gamasutra.com/php-bin/new...hp?story=19817 NCsoft loses money.
Quote:
NCsoft's net sales increased by 7 percent on the previous year to 81.2 billion won ($78.1m), although this was 8 percent less than the last quarter. The publisher netted 6.1 billion won ($5.9m), in income, down 42 percent on the previous year.

upier

upier

Grotto Attendant

Join Date: Mar 2006

Done.

[JUNK]

I am pointing the finger of blame towards all the people that didn't buy the BMP and at least 10 extra slots!

/points finger of blame towards you

Jetdoc

Jetdoc

Hell's Protector

Join Date: Jul 2005

The Eyes of Texas [BEVO]

D/A

"The company yesterday revealed that profits fell 42 percent in its second fiscal quarter due to a lack of new products in the last few months, in addition to higher advertising and outsourcing costs."

That's not so great. Good news: You can bet that they are going to pushing hard to get GW2 out there. Bad news: Testing, attention to detail, and additional features may go by the wayside in an effort to get it out.

SerenitySilverstar

Wilds Pathfinder

Join Date: May 2006

NCSoft != Anet

romeus petrus

romeus petrus

Jungle Guide

Join Date: Jun 2006

Urgoz Warren

Legion of Doom [LOD] Home of PWNZILLA http://PWNZILLA.guildlaunch.com

No new content = no meaningful profit.

Are you surprised?

slowerpoke

slowerpoke

Desert Nomad

Join Date: Jul 2007

Cuba

nothing to do with Anet, they are based in WA, not TX

as for falling profits, dont forget the last new gw title was released a year ago. and those profits are only quarterly figures

Ultima pyromancer

Lion's Arch Merchant

Join Date: Jan 2007

Club Of A Thousand Pandas [LOD???]

Me/

Bet there kicking themselves over eotn now

Elder III

Elder III

Furnace Stoker

Join Date: Jan 2007

Ohio

I Will Never Join Your Guild (NTY)

R/

profit is related to new material released and extra sales of old material - it's pretty simple economics there nothing too surprising...

Jetdoc

Jetdoc

Hell's Protector

Join Date: Jul 2005

The Eyes of Texas [BEVO]

D/A

Quote:
Originally Posted by SerenitySilverstar
NCSoft != Anet
Quote:
Originally Posted by slowerpoke
nothing to do with Anet, they are based in WA, not TX
Anet is owned by NCSoft. The layoffs were done at NCSoft Interactive, another subsidiary of NCSoft that is dedicated to developing some of NCSoft's other titles.

Although Anet wasn't affected by the layoffs, there has to be a slight pause as to how NCSoft is doing and how it might "pressure" Anet in their development decisions/timelines.

Zahr Dalsk

Grotto Attendant

Join Date: Aug 2007

Canada

I bet they could have made a lot of money selling an account upgrade that removed the hero limit. Say, 20 dollars to avoid henchmen and get to do elite missions? Sure.

I do wonder how this might affect ArenaNet, though.

BenjZee

BenjZee

Forge Runner

Join Date: Dec 2006

The Overacheivers [Club]

Mo/

someone really want removal of hero cap
Im sure they'll find another way of making money anyways. I wouldn't be worried theyre still making money

Red Sonya

Desert Nomad

Join Date: Jul 2005

Quote:
Originally Posted by SerenitySilverstar
NCSoft != Anet
actually it does as if NCsoft goes so too does Anet and GW2. Nothing is promised or guarenteed about GW2 it like many other games that never made it to sales is just another "work in progress". Also NCsoft pulled the plug on "Auto Assault" without hardly a note of warning so that too could happen to GW and GW2 just be forewarned.

Crimso

Crimso

Lion's Arch Merchant

Join Date: Jul 2006

PCformatforums[PCFF]

Me/Mo

I'd pay for the hero cap removal(for PvE), I think lots of people would purchase it if it was available.

Snow Bunny

Snow Bunny

Alcoholic From Yale

Join Date: Jul 2007

Strong Foreign Policy [sFp]

i still dont understand how GW pulls in 4+mil a quarter.

SerenitySilverstar

Wilds Pathfinder

Join Date: May 2006

Quote:
Originally Posted by Red Sonya
actually it does as if NCsoft goes so too does Anet and GW2.
They're good business people. They'd find another publisher.

Not everything is dressed in absolutes.

King Kong

King Kong

Krytan Explorer

Join Date: Jan 2006

W/R

Quote:
Originally Posted by SerenitySilverstar
They're good business people. They'd find another publisher.

Not everything is dressed in absolutes.
Pretty sure NCsoft owns them

http://www.bizjournals.com/austin/st...9/daily57.html

Age

Age

Hall Hero

Join Date: Jul 2005

California Canada/BC

STG Administrator

Mo/

Quote:
Originally Posted by Red Sonya
actually it does as if NCsoft goes so too does Anet and GW2. Nothing is promised or guarenteed about GW2 it like many other games that never made it to sales is just another "work in progress". Also NCsoft pulled the plug on "Auto Assault" without hardly a note of warning so that too could happen to GW and GW2 just be forewarned.
NcSoft would sell ArenaNet to some other publisher stay some what aflout.

Dante the Warlord

Desert Nomad

Join Date: Jul 2006

W/R

Eh I saw it happening, although i saw it coming a year sooner. Nonetheless I was right

Buster

Buster

Wilds Pathfinder

Join Date: Jan 2006

Elona

Clan Eternal Legion

D/W

NcSoft made some bad decisions and this is a direct result of what happens. Profits fell to 42% because..

1. Tabula Rasa was a bust and I'm not even sure they are even close to breaking even on what it cost to make this game.
2. They spent money purchasing the rights to COH/COV.
3. Wasted alot of time and money on force feeding Dungeon Runners and Exteel to the public. These games had no chance of ever becoming very profitable games. Obviously it shows noone did their homework on the current gaming market to see what people actually like and want.

Instead marketing more proven games such as Guild Wars, Lineage 2 and COH?COV or perhaps even making these 2 games much better gameplay wise they wasted so much time and effort on games that never blossomed.

Oh and I wouldn't hold my breath for any GW2 news or showing anytime soon. They are going to promote Aion until they turn blue and then turn their efforts towards their new console project called Project M which by the way already has a (Ahem) gameplay video of the new game.

Well no matter how you want to slice it the fact remains that good talented people lost their jobs because of poor management. I know it is a part of life but it is still really sad to see happen.

Jetdoc

Jetdoc

Hell's Protector

Join Date: Jul 2005

The Eyes of Texas [BEVO]

D/A

Quote:
Originally Posted by SmithyBen
someone really want removal of hero cap
Zahr Dalsk can't make a post nowadays without mentioning it or linking to his thread that's on life support in Sardelac.

I agree that Tabula Rasa was a complete bust, and I'm not sure why NCSoft is wasting its precious resources on clearly inferior titles.

R.Shayne

Wilds Pathfinder

Join Date: Oct 2007

Quote:
Originally Posted by Age
NcSoft would sell ArenaNet to some other publisher stay some what aflout.
Nope I would guess something else. NCSoft would streamline (more layoffs), determine where the market is going, develop a plan of action, put together a team, outsource it, and publish it.

I have never heard of a publisher selling a studio, mostly they just close them down and find/create a new studio. Hopefully no one signed a no-competition contract. I always loved these, “This way you can’t take what we teach you and use it with one of our competitors.” Funny thing is none of them have ever taught me anything; I had to do that on my own time. I liked it better when Studios were not owned by publisher; of course development cost killed most of those off.

GW2 will make it to the market or not make it to the market based on earning projections. The fact that GW1 is still profitable makes me happy.

draxynnic

draxynnic

Furnace Stoker

Join Date: Nov 2005

[CRFH]

It seems to me that the problem may be that they're trying to compete with themselves. Lineage 2 and the CoH/CoV franchise are both subscription-based, and GW is a good alternative to subscription-based games. Even without considering WoW, it seems that each new subscription-based game they try to put on the market is going to be a demonstration of the principle of diminishing returns.

wilebill

wilebill

Desert Nomad

Join Date: Dec 2005

Mt Vernon, Ohio

Band of the Hawk

W/Mo

Yes, ArenaNet is part of NCSoft Corporation. The GW series is successful enough that I would think that another buyer would pick ANet up if NCSoft really needed the cash to stay afloat. I do not think either GW or GW 2 is threatened.

Another recent example. Blizzard is now a division of Activision-Blizzard. Nothing has changed at Blizzard, progress on their existing and other games in the pipe as usual. Studios changing hands often leads to improvement rather than otherwise.

The example of how things can go completely wrong is Flagship Studios (Hellgate London and Mythos) which seems to be either out of business or in hibernation at the moment. But there, the game itself was floundering and had lost its value as an asset with high potential future revenue.

Wrath of m0o

Wrath of m0o

Desert Nomad

Join Date: Apr 2005

Boston Ma.

Is That Your Build[HaHa]

P/W

They can lay off the whole company if Anet keeps pissing off their player base with the Nurf Bat!
No one is going to want to play GW2 by the time everyone leaves this game from being pissed the #$%@ off.

Angelic Upstart

Angelic Upstart

Krytan Explorer

Join Date: Mar 2006

South Coast UK

[SBS] [RETIRED]

W/E

Quote:
Originally Posted by Crimso
I'd pay for the hero cap removal(for PvE), I think lots of people would purchase it if it was available.


I wouldnt, who the hell, in thier right mind would pay to reply the game that they have already paid for once and completed just so they could do it all again with seven heroes.?

enter_the_zone

Jungle Guide

Join Date: Nov 2007

R/

Quote:
Originally Posted by Zahr Dalsk
I bet they could have made a lot of money selling an account upgrade that removed the hero limit. Say, 20 dollars to avoid henchmen and get to do elite missions? Sure.

I do wonder how this might affect ArenaNet, though.
That's a frigging genius idea. They can definitely have my £40 for that (i have 2 accounts)

Abedeus

Abedeus

Grotto Attendant

Join Date: Jan 2007

Niflheim

R/

Quote:
Originally Posted by enter_the_zone
That's a frigging genius idea. They can definitely have my £40 for that (i have 2 accounts)
Not mine, lol. It's ALREADY possible to have 6 heroes, using 2 accounts or with a help from a friend. But if it was $5, I'd buy.

JupiterStarWarrior

JupiterStarWarrior

Lion's Arch Merchant

Join Date: Jun 2008

Oklahoma City

Noble Order Of Valiant Angels

Me/

The fact that Zahr keeps saying that the Hero Cap should be removed is annoying, otherwise it could be an interesting idea.

Nonetheless, that sucks that the offices at Austin were laid off. I hope those people find good jobs in the area soon.

distilledwill

distilledwill

Forge Runner

Join Date: Sep 2006

Blighty

The Legion of the Blue Blade

R/Mo

Quote:
Originally Posted by upier
I am pointing the finger of blame towards all the people that didn't buy the BMP and at least 10 extra slots!

/points finger of blame towards you
OMG! *Buys one more character slot*

That'll pay for one game designer for another few months, right?!

FrAnt1c??

FrAnt1c??

Forge Runner

Join Date: Jan 2007

Belgium

Legion Of Sacred Light [LSL]

Mo/

Quote:
Originally Posted by KZaske
Heres the article link: http://www.gamasutra.com/php-bin/new...hp?story=19834.

Here is the meat of the story:


I find myself wondring if this will have any effect of the server farm. Yeah I know they say it related only to un-announced products, but honestly considering how many half truths we have heard from them recently do you really believe it? For me, It is my hope we don't see an increase in lag.

Edit: More NCsoft news
Source: http://www.gamasutra.com/php-bin/new...hp?story=19817 NCsoft loses money.
Well, its been a while since NCsoft released a new game succesfully ( the order or succes compared to gw ). Basically, GW1 does not yield new revenue anymore, and only requires fresh capital to sustain. ( servers, employees,... ).
They will propably keep losing money and see their revenues go down some more, untill they release another big game, like gw2 is expected to be.

No big deal imo...

Buster

Buster

Wilds Pathfinder

Join Date: Jan 2006

Elona

Clan Eternal Legion

D/W

Quote:
Originally Posted by draxynnic
It seems to me that the problem may be that they're trying to compete with themselves. Lineage 2 and the CoH/CoV franchise are both subscription-based, and GW is a good alternative to subscription-based games. Even without considering WoW, it seems that each new subscription-based game they try to put on the market is going to be a demonstration of the principle of diminishing returns.
Pretty much agree. They feel that mass producing mmo games is the way to go but obviously that is not working. They spread themselves too thin. They should be more concerned with making their most profitable games even better just like Blizzard does.

Though what do I know right ? I'm just your average gamer here. I can tell you though that when Starcraft 2 and Diablo 3 hit the shelves just about everyone will be playing them. I remember watching an interview with Rob Pardo and he explained the difference between Blizzard and everyone is that they cancel the misses. Well NCSoft should have cancelled Tabula Rasa, Dunegeon Runners and Exteel. Apparently Mr Pardo is 100% correct.

Oukanna

Oukanna

Lion's Arch Merchant

Join Date: Apr 2007

Ancient Shaolin Guardians

E/D

Quote:
Though what do I know right ? I'm just your average gamer here. I can tell you though that when Starcraft 2 and Diablo 3 hit the shelves just about everyone will be playing them. I remember watching an interview with Rob Pardo and he explained the difference between Blizzard and everyone is that they cancel the misses. Well NCSoft should have cancelled Tabula Rasa, Dunegeon Runners and Exteel. Apparently Mr Pardo is 100% correct.
I agree there, they need to concerntrate on their better games to make more money, not waste it on games that clearly will never be as big.
Sticking with gw1 a little bit longer, and creating better new content, could of made a difference with profits. Nevermind they didn't and look what happened xD

As for the layoffs I feel sorry for the poor guys. If Arena net doesnt pull their weight they might suffer the same too. Lets just hope that doesnt happen

lyra_song

lyra_song

Hell's Protector

Join Date: Oct 2005

R/Mo

I had so much hope for Tabula Rasa too...

oh well...

Dont believe the hype.
http://www.youtube.com/watch?v=ASjH7X-jAY4 (not a rickroll)

As for AION, i think it looks really nice and I LOVE the idea of a "balancing" race controlled by the CPU to keep one side from owning the other side too much. They should have done this with GW: Factions.

Luxon, Kurzick, and Imperial (NPC)

On the Anet side, i dont think NCsoft will drop them. They should see the GW is profitable and invest more to make it better.

Painbringer

Painbringer

Furnace Stoker

Join Date: Jun 2006

Minnesota

Black Widows of Death

W/Mo

Times are tough here in America we are finally starting to see what its like to buy gas at European prices Ouch . It is not surprising to me to see the cuts. They are happening everywhere not just the tech sector, but industrial sector as well. The company I work for has seen increase in cost of raw material jump 60% since January. Hyper inflation if you want to call it. Low dollar value increased transportation and utilities costs do not help at all.

Jecht Scye

Jecht Scye

Wilds Pathfinder

Join Date: Dec 2005

Lucky Crickets[Luck]

N/Me

NCSoft would be kicking themselves if they sold one of their most profitable subsidiaries. My guess is ArenaNet is safe from the tradeblock.

No_Burdens

No_Burdens

Ascalonian Squire

Join Date: Feb 2006

[TKE]

W/Mo

Quote:
Originally Posted by Snow Bunny
i still dont understand how GW pulls in 4+mil a quarter.
They actually get kickbacks from Tiwaneese companies for selling gold, then the bust players for buying it and force them to buy new accounts... Instant cash flow!