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Rumor is EA is going to lay off 500-1000 people

So it was report this week that EA might be layoff 500 to 1000 of it 9000 employees (EA is of course is denying this). That a pretty huge number though, which make me thing SWTOR is doing much much worse than they wanted.

The Money

EA did sell over 2 million copies of the game. So if everyone bought the 59.99 version they would make 120 million of the 200 million they spent on the game. Most likely they made about 160 million in box sales. If though 2 million players stayed EA would be making 30 Million a month which would of been huge, as they were expecting about 1 million players. But the reality is there is less than 1 million players, probably close to 700,000 and that number is probably dropping. I remember reading somewhere where the 500,000 player would be lowest viable level for EA.

Earning and Shareholder rath

So i think EA upper management is reacting now. Their next Earning Report is at the start of May. This report will cover Q4 (Jan1-Mar 31). I’m expecting the mass exodus has hurt EA bought line. To avoid shareholder rath they will have to show that they are dealing with the situation. And reshuffling people to project that will make money and laying off expendable people is most likely what will happen.

What this mean for SWTOR

Depends on how many subscribers they have left. If it closer to 1 million  (or where they can make an OK profit off the game), they’ll make cut, but there will still be a functioning team that can work on bug fixes, updates, and an expansion at the same time. It will be smaller than the original team, but most MMO (other than WoW) follow this model.

If the number closer to 500K (or what ever the non viable point is). EA will cut the team drastically. You will get a skeleton crew left, who will fix bugs, and put out updates. But expansion will be out of the questions. Essentially keep the servers up and running as long as there bring in more cash that it cost to keep the game running.

 

 

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