Activision lays off 50% staff at 7 Studios

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)