Ryan Lastimosa, in the midst of a recovery period at home post-surgery, received a text message from his employer at Respawn Entertainment, a video game production company. The message urged him to engage in a conversation.
During their discussion, the company president conveyed to Lastimosa, who served as the director of innovation, that the company had decided to cancel a solo-player video game he had been diligently developing for about a year and a half. This move, originating from the suburbs of Chatsworth in Los Angeles, resulted in Lastimosa and his team of 47 technicians losing their jobs, marking the end of a 13-year collaboration since the company’s inception.
Simultaneously, Electronic Arts, headquartered in Redwood City, Northern California, announced in March of the previous year that it would downsize its workforce by 6%, equating to the elimination of 800 jobs, alongside a reduction in office space. This strategic restructuring aims to emphasize “strategic priorities.”
Industry experts suggest that the video game sector has adjusted its trajectory over the last year after a phase of rapid growth. Publishers and developers have adapted to a decline in demand post-COVID-19 pandemic, coupled with escalating production costs and heightened competition within the industry.
Estimates within the video game industry indicate that around 6,500 professionals worldwide in this field have faced layoffs since January of the previous year, including hundreds from companies operating in California. Some observers contend that the actual number may far exceed the reported figure, as certain companies have chosen not to disclose the extent of their job cuts.
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