Rumors about NCsoft, game publishers of MMO games, were circulating through the Internet about massive layoffs within the company. A developer-only message board described the restructuring as due to the poor performance of Auto Assault and continuing subscription downturns in their City of Villains and City of Heroes online games. The original stories, which appeared in F13.net, described heavy cutbacks, which decimated at least 80% of the staff at NCsoft.
The rumors are apparently well founded as NCsoft has confirmed today that there were major staff reductions at the company. Although they did not confirm the numbers reported in the developer,s message board, they did say that 70 employees were let go from the company out of a total staff of 300.
Ironically, NCsoft had one of the largest and formidable displays at E3 in which live bands, gigantic projection displays, dancing models and pyrotechnics drew attention to their products. However, during the long musical demonstrations and displays, there was hardly a word mentioned about what their games were. As a result, many left with a good impression of the show, but with no recollection of what games they published.
The following is the official statement given by NCsoft concerning their staff cutbacks:
“NCsoft,s Austin business has announced an immediate restructuring within its organization that included the difficult task of reducing members of its workforce. The online games industry is one that is continually changing with the scaling up and down of business based on product launches and product development schedules. Over the past two and a half years NCsoft has launched six major titles into the North American market and has grown with each title launch. As the company continues to grow its live products and prepares its next set of major online game releases for later in 2006 and 2007, the company sees a slowdown in its launch pattern and the need to streamline its business. For this reason, NCsoft has reduced its 300 person workforce in Austin by approximately 70 people to accommodate this change. This decision has no impact on the schedules of any projects currently in development and service to NCsoft,s current games will continue without interruption.”
