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Activision lays off 50% staff at 7 Studios

By on October 7, 2009

Activision acquired 7 Studios, developer of Scratch the Ultimate DJ, in April 2009.

Since Scratch is targeted at the same market as Activision’s DJ Hero, the acquisition led to a lawsuit from Scratch publisher Genius, alleging “intentional interference with contract, breach of contract and misappropriation of trade secrets”.

Now, with DJ Hero on its way to stores at the end of the month, Activision has sacked 30 people, 50% of 7 Studios’s staff, stating that it “is reducing its workforce to better reflect Activision’s upcoming slate of music-based games."

Normal business practice or ruthless suppression of a competitor?

What do you think?

Added to the Job Loss Tracker.

(via GamesIndustry.biz)

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: thecurveonline.com

5 Comments

  1. Nicholas Lovell

    October 8, 2009 at 12:37 pm

    Err, money?

  2. Raul

    October 8, 2009 at 6:58 am

    Yep, definitely ruthless and unethical. Why would any self-respecting developer want to sign up with them?

  3. Nicholas Lovell

    October 8, 2009 at 4:37 am

    Err, money?

  4. Raul

    October 7, 2009 at 10:58 pm

    Yep, definitely ruthless and unethical. Why would any self-respecting developer want to sign up with them?

  5. deftangel

    October 7, 2009 at 7:38 am

    In a word, ruthless.

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