Those of you who keep up on gaming news are probably aware that Pandemic studios, the developers behind the Mercenaries series and the upcoming Saboteur, saw 200 employees laid off by parent company Electronic Arts.
In a recent interview with Kotaku, Electronic Arts CEO John Riccitello stated that one of the biggest factors in shutting down Pandemic was the developer’s location in California.
According to Riccitello, employing workers in California costs two to three times more than it does to employ people in Montreal, the UK, eastern Europe and China. He cited some recent regulatory changes in California that had an effect on all tech and entertainment companies. Places like Montreal also offer tax incentives for publishers.
When Kotaku brought up the disappointing Lord of the Rings: Conquest as one of the possible factors, Riccitello maintained that the developer’s location was indeed a big factor.
In addition to California, Riccitello says the other big factor is the shift to digitally-distributed games. He doesn’t think that an independently-located Pandemic studios is ideal in this changing market.
As a born and raised resident of California, I raise my fist high and shake it fiercely. That said, I’m fairly uneducated on the shifting laws and if what Riccitello says is true, I shed a tear for my beloved state. Any other Californians want to chime in with their thoughts?
Article from Gamersyndrome.com