In the dynamic environment of the video gaming sector, Ubisoft, a well-known game development company, is currently maybe facing restructuring that resulted in recent layoffs while the recent successes of the company are noteworthy.
This restructuring, however, is in response to bigger picture trends like the live service games industry which necessitates ongoing investment to keep players engaged.
Ubisoft Faces Workforce Reduction Despite Market Success
Over the course of 2023, approximately 10,000 people from the gaming industry became unemployed as businesses around the globe tried to adjust to new market requirements.
The massive increase in titles providing a live service, those being monetized through microtransactions or additional content drops, has resulted in the rearrangement of studio workers and business strategy.
Ubisoft’s recent launch of “Skull and Bones” in February may have taken an alternative route but it has not spared the company from canceling its employee layoffs.
The recent layoffs at the hands of Ubisoft are not a one-time happening but rather a continuation of a trend unseen in the last few months.
At the beginning of this year, the organization fired 60 employees over three locations: North Carolina, Newcastle, and the UK.
Finally, in November of that year, the visual effects and global IT departments were reduced by another 124 occupations. Some affected workers reacted with dismay at these decisions, and this, in turn, showed the internal problems the company was facing.
Image Credits: UbisoftThe most recent job cut disclosed in early 2024 impacted 45 employees, specifically from the Global Publishing and Asia Pacific departments. Despite the company’s promise to assist those affected, the concern over those people’s prospects hangs heavy.
The whole world of the industry is entering the era of live service games which is not an exception.
While proponents make the point that it is necessary for the sake of stable finances, their opponents argue that the full price of ownership plus the additional financial burden is unfair to players.
This disparity has proved to be attractive to players seeking a complete experience devoid of additional monetization twists.
Ubisoft guarantees that all their upcoming games’ releases continue as usual despite the job cuts.
According to the press, “Star Wars Outlaws” and “Assassin’s Creed [the next installment]” productions seem to be underway. In addition, projects such as “The Division Heartland,” a free-to-play arena shooter, are still in the process of making.
Ubisoft regards the layoffs as one of its actions to optimize the food processes, focusing on the smaller development team strategy.
However, institutions like BioWare, led by Swen Vincke, the director of “Baldur’s Gate 3,” oppose these layoffs as they focus on short-term gains at the expense of the valuable institutional knowledge and skills of experienced workers.
Vincke promotes solutions that involve the skills of experienced personnel, rather than the option of workforce reduction.
Overall, along with these revolutionary changes, many uncertainties have emerged, shaping the future of the gaming industry. Various companies will continue to announce layoffs with the dispute about the live-service decade still ongoing.
The changing terrain illustrates how games are developed and marketed nowadays in an entirely different way. It is all about trying to figure out what the industry will look like in the future.
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