VANCOUVER (NEWS1130) – Video game giant Electronic Arts has announced another restructuring, and more layoffs.
A tech expert says it’s a sign of an industry trying to keep up with change.
Electronic Arts won’t say how many people have been laid off or where but there are reports hundreds of the 9,000 employees have been let go. The company does have a presence in Metro Vancouver.
Digital and tech expert Matt Toner weighs in. It should be mentioned he’s also a candidate for the BC NDP in Vancouver-False Creek.
“The rise of mobile and social and casual games replaced console games,” he points out. “Suddenly you’ve got people playing Angry Birds, not playing Medal of Honor.”
“Now you’re seeing that the industry went a little too far in that direction, finding they overpaid for those companies or those games weren’t as profitable as they once were,” Toner adds.
He says now it’s realized those types of games aren’t as popular or profitable, thus the shake up.
“The gaming industry itself is going through a time of transition and that inevitably means job losses,” Toner says. “Any big companies like Electronic Arts looks at its studios around the world and says which ones are cost effective, and which ones aren’t.”
Toner also says the local video game industry has become less competitive, meaning jobs are going elsewhere. He plugs his campaign, adding an NDP government would invest in the high tech sector.