Big factories are also struggling, and the parent company of 505 Games plans to lay off 30% of its workforce
The gaming industry is still in the winter.
Recently, Digital Bros, the parent company of 505 Games, recently issued a press release saying that it plans to lay off 30% of its workforce worldwide.
According to public information, Digital Bros currently has 442 employees, and the number of layoffs is expected to reach 130 at a rate of 30%.
In Digital Bros's view, the cost reduction and efficiency increase this time are mainly due to the fact that the market environment is not very friendly to new games and new IPs.
"Since the pandemic, the market has become more picky about new games, with consumers increasingly returning to established IPs and spending longer playing the same games. Digital Bros said.
Digital Bros' studios include 505 Games, the developer of Terraria, Kunos Simulazioni, the developer of Wonder Kosa, and Infinity Plus 2, the developer of God of War's Challenge, among others.
On the one hand, Digital Cros also said that it will invest more resources in the development of sequels to old IPs.
In fact, with the help of "gnawing old" old IP, Digital Bros can be said to have tasted a lot of sweetness.
According to the financial report, by the end of 2022, the global sales of the game "Control" developed by Remedy and published by 505 Games have exceeded 3 million copies. "Control" generated 92 million euros (about 679 million yuan) in revenue with a cost budget of 30 million euros (about 221 million yuan).
Thanks to Control's already large user base and good market performance, Digital Cros also plans to deepen the IP.
In the 2022 annual report, Digital Bros said that the "Control" IP will launch the sequel "Control 2" and the spin-off game "Condor", with a budget of 50 million euros (about 390 million yuan) and 25 million euros (about 195 million yuan) respectively.
It is worth mentioning that the spin-off "Condor" will be a multiplayer online game based on the original "Control" universe. And in addition to Control, Wonder Corsa 2 is expected to be released in the spring of 2024.
Under the cold winter of the industry, how to reduce costs and increase efficiency, open source and reduce expenditure has become a practical problem in front of manufacturers.
According to public information, since the beginning of this year, a number of game manufacturers have announced layoff plans, including Xbox, Epics, Sony, CDP, Unity, Ubisoft, Riot, Blizzard, Crystal Dynamics and Amazon.
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