it's the idea of needing an internet connection to play a single-player game
You'll need a connection to download it (duh), but you won't need it to play the single player games. Got to love misinformed whining.
Also, I don't buy the "it was 95% complete!@" Okay... the engine was 95% complete, but only half of the levels and scripting was complete... you know, the part we call "the game" as opposed to the core engine that you build a game on. And this was only the DEMO. Nevermind that they have to do play testing and redesign for what works and what doesn't (or just release it to the masses, who cares about play testing?) Oh, and claiming the engine was 95% complete... those in software engineering know that it takes 50% of your time to get 90% done, and another 50% of your time to get the last 10% done. (ie, it's easy to think you only have a little bit left to do, when its actually going to take quite a bit of work to complete it).
The excerpt seems to imply that the two employees who didn't get canned got special treatment. I don't see what's wrong about that, if they had recommenders from their last project that they did excellent work, I don't see why it wouldn't be a good idea to try to keep those guys if you could only keep a few of them.