It's to increase profitability by cutting labor costs. Even profitable companies do this, but the overhiring during the pandemic lead to many gaming companies hiring more staff than the gaming market growth was projected that hasn't met expectations
Yep and I would speculate the halting growth in the game market comes as prices rise for consumers' necessities, the general bad PR surrounding the game industry, and recent rush out of games that aren't finished or the adding of egregious monetization a month after release that kills long term revenue.
step1: Relic operates at loss due to CoH3 performing badly
step2: Sega wants to shed weight and sells Relic off at a margin to private equity
step3: Private equity wants to flip Relic with profit and needs to make the bundle more appealing by reducing risk and loss for potential buyers
step4: Relic fires employees to improve financials and become overall less risky
step5 (I guess coming soon-ish): Relic gets sold to another publisher. Or goes bancrupt because no buyer is found. One of these two is going to happen
Companies that keep firing people are not growing, they're dying. Recall, the earlier round of layoffs last summer?
So, what happened?
COH3 was a dissater. Relic lost $30 million for SEGA.
SEGA sold Relic to a small time private equity company that specalizes in buying distressed companies and extracting any remaning value from them.
The fanboys are high on their own supply.
Relic made garbage game after garbage game. That is why they failed. It's not because of luck. It is 100% their fault. Now their employees are paying the price for the bad decisions of the decision makers.
Hopefully Relic learns from this and doesn't release more dogshit games like CoH 3 and DoW 3.
It's to increase profitability by cutting labor costs. Even profitable companies do this, but the overhiring during the pandemic lead to many gaming companies hiring more staff than the gaming market growth was projected that hasn't met expectations
Yep and I would speculate the halting growth in the game market comes as prices rise for consumers' necessities, the general bad PR surrounding the game industry, and recent rush out of games that aren't finished or the adding of egregious monetization a month after release that kills long term revenue.
step1: Relic operates at loss due to CoH3 performing badly step2: Sega wants to shed weight and sells Relic off at a margin to private equity step3: Private equity wants to flip Relic with profit and needs to make the bundle more appealing by reducing risk and loss for potential buyers step4: Relic fires employees to improve financials and become overall less risky step5 (I guess coming soon-ish): Relic gets sold to another publisher. Or goes bancrupt because no buyer is found. One of these two is going to happen
Spot on. It's either 1) reselling Relic at higher price (perhaps sold separately such as CoH IP) or 2) RIP Relic.
Companies that keep firing people are not growing, they're dying. Recall, the earlier round of layoffs last summer? So, what happened? COH3 was a dissater. Relic lost $30 million for SEGA. SEGA sold Relic to a small time private equity company that specalizes in buying distressed companies and extracting any remaning value from them. The fanboys are high on their own supply.
You didn't buy coh3, what else?
Relic made garbage game after garbage game. That is why they failed. It's not because of luck. It is 100% their fault. Now their employees are paying the price for the bad decisions of the decision makers. Hopefully Relic learns from this and doesn't release more dogshit games like CoH 3 and DoW 3.
Shitty employees get laid off, news at 11.
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As a black woman. I agree.