For over five years, it has been our goal to ship games in three enduring, global franchises. To realize that ambition, we set up several incubation projects, each seeded with senior development leaders from our existing teams. We eventually realized that this model stretched our talent too thin, too quickly. It also forced our studio support structures to scale to a larger level than we could realistically support, given our two primary products in development – Destiny and Marathon.
Additionally, in 2023, our rapid expansion ran headlong into a broad economic slowdown, a sharp downturn in the games industry, our quality miss with Destiny 2: Lightfall, and the need to give both The Final Shape and Marathon the time needed to ensure both projects deliver at the quality our players expect and deserve. We were overly ambitious, our financial safety margins were subsequently exceeded, and we began running in the red.
After this new trajectory became clear, we knew we had to change our course and speed, and we did everything we could to avoid today’s outcome. Even with exhaustive efforts undertaken across our leadership and product teams to resolve our financial challenges, these steps were simply not enough.
As a result, today we must say goodbye to incredible talent, colleagues, and friends.
Slick wrote on Aug 1, 2024, 00:08:jacobvandy wrote on Jul 31, 2024, 20:20:Slick wrote on Jul 31, 2024, 19:13:
God forbid I bring up the 30% of gross Valve Tax in a thread where we're talking about EVEN MORE game developers losing their jobs. I mean I've been biting my tongue for the last 18 months, what's a few more hundred to get axed while PC gamers further bury their heads in the sand...
Studio blames financial woes on their own missteps in a shifting economic climate, but no, the real problem is the static overhead fee they've been subjected to on a small fraction of their estimated 20M+ sales. No wonder their financial safety margins gave way to ambition, who can keep track of such a reliable expense?
Nevermind that they'd already sold around 15 million units of the base game and first expansion BEFORE launching on Steam. What the fuck did they do with all of that money that they were forced to go F2P and then ratchet up the enshittification from there, leading to much fewer sales after that point? You really think Valve's cut was their death knell?
You're dancing around my point without addressing it.
You, like every other "industry commentator" like to quote mismanagement as the reason why over 50, probably more than 60 since I last checked studios have closed their doors in the last 12+ months.
Really? They all got really stupid overnight? Or you think the bigger reason is the profit MARGIN for these studios operations just wasn't worth the headache to the beancounters up top.
You think not losing 30% of every sale to a payment processor wouldn't have changed the calculus? It's always just been about money, game studios aren't a charity. They're funded by investors who want to see a return. When a whole segment of the gaming population is held hostage to Steam, YES , I THINK THATS A PROBLEM.
These studios closed because of the pandemic boom, and then the correction. Losing so much time training people, so much brain drain, so many people having to uproot their lives to move to a new city for a job, people who are still paying off their college loans they spent just to get these jobs. And every fucking day we hear about another studio closing its doors, or another 17% of the total workforce getting laid off. And then you go back to only buying from Steam. And you can't see how one affects the other.
I'm not saying this is the ONLY reason. But wake up dude. Investor margins are usually 30% on a good day. Recently it's been like 5-10% for many studios. Selling a million PC copies without the Steam tax is another 20 million dollars that studio earned. You don't think that helps with job security when the investors see that the studio is making a consistant profit? Belt-tightening is because of income. Help studios make more income by not giving 30% to a fucking mafia-style middleman, and you actually help the humans who make the art that we all love that has enhanced our lives throughout the years.
Or you know, just ignore reality, continue to fund the monopoly, and shed a crocodile tear next week when another studio closes, and you blame it on mismanagement, and not the only thing that matters, $$$$$$$$$.
Slick wrote on Aug 1, 2024, 00:08:
You're dancing around my point without addressing it.
You, like every other "industry commentator" like to quote mismanagement as the reason why over 50, probably more than 60 since I last checked studios have closed their doors in the last 12+ months.
Really? They all got really stupid overnight? Or you think the bigger reason is the profit MARGIN for these studios operations just wasn't worth the headache to the beancounters up top.
You think not losing 30% of every sale to a payment processor wouldn't have changed the calculus? It's always just been about money, game studios aren't a charity. They're funded by investors who want to see a return. When a whole segment of the gaming population is held hostage to Steam, YES , I THINK THATS A PROBLEM.
These studios closed because of the pandemic boom, and then the correction. Losing so much time training people, so much brain drain, so many people having to uproot their lives to move to a new city for a job, people who are still paying off their college loans they spent just to get these jobs. And every fucking day we hear about another studio closing its doors, or another 17% of the total workforce getting laid off. And then you go back to only buying from Steam. And you can't see how one affects the other.
I'm not saying this is the ONLY reason. But wake up dude. Investor margins are usually 30% on a good day. Recently it's been like 5-10% for many studios. Selling a million PC copies without the Steam tax is another 20 million dollars that studio earned. You don't think that helps with job security when the investors see that the studio is making a consistant profit? Belt-tightening is because of income. Help studios make more income by not giving 30% to a fucking mafia-style middleman, and you actually help the humans who make the art that we all love that has enhanced our lives throughout the years.
Or you know, just ignore reality, continue to fund the monopoly, and shed a crocodile tear next week when another studio closes, and you blame it on mismanagement, and not the only thing that matters, $$$$$$$$$.
jacobvandy wrote on Jul 31, 2024, 20:20:Slick wrote on Jul 31, 2024, 19:13:
God forbid I bring up the 30% of gross Valve Tax in a thread where we're talking about EVEN MORE game developers losing their jobs. I mean I've been biting my tongue for the last 18 months, what's a few more hundred to get axed while PC gamers further bury their heads in the sand...
Studio blames financial woes on their own missteps in a shifting economic climate, but no, the real problem is the static overhead fee they've been subjected to on a small fraction of their estimated 20M+ sales. No wonder their financial safety margins gave way to ambition, who can keep track of such a reliable expense?
Nevermind that they'd already sold around 15 million units of the base game and first expansion BEFORE launching on Steam. What the fuck did they do with all of that money that they were forced to go F2P and then ratchet up the enshittification from there, leading to much fewer sales after that point? You really think Valve's cut was their death knell?
Slick wrote on Jul 31, 2024, 19:13:
God forbid I bring up the 30% of gross Valve Tax in a thread where we're talking about EVEN MORE game developers losing their jobs. I mean I've been biting my tongue for the last 18 months, what's a few more hundred to get axed while PC gamers further bury their heads in the sand...
Beamer wrote on Jul 31, 2024, 18:12:Slick wrote on Jul 31, 2024, 17:58:
Bungie has more than 300% more employees than Valve lul.
In fairness, they actually make video games.
Slick wrote on Jul 31, 2024, 17:58:
Bungie has more than 300% more employees than Valve lul.
PHJF wrote on Jul 31, 2024, 16:17:
How the FUCK does Bungie have 1000+ employees??? They didn't even have 200 when they ran Halo!
Xeth Nyrrow wrote on Jul 31, 2024, 13:32:Fastest way to look good at the quarter end balance sheet is to fire some people and preserve the illusion of infinite growth.
More corporate mismanagement in the games industry? Impossible.