Activision Layoffs - Neversoft to close in April?

Prototype Developer Radical Cut In Half

Radical Entertainment, developer of Prototype and The Incredible Hulk: Ultimate Destruction, has been hit with substantial layoffs today, according to development sources close to the Vancouver-based studio. Approximately 90-plus employees have been let go, sources say.

That's about half the studio's headcount, apparently, affecting two of the three development teams at the Activision Blizzard owned developer. Radical's most recent game, the open world action game Prototype for the Xbox 360, PlayStation 3 and PC, was met with a positive critical response and solid initial sales.

Activision had previously "realigned" the studio after its merger with Vivendi Games.

One source said that Radical was affected by Disney's recent purchase of Marvel, leading to the loss of an unnamed project. Parent company Activision's most recently published Marvel-licensed games include Marvel Ultimate Alliance 2, Spider-Man: Web of Shadows and X-Men Origins: Wolverine.

Activision Takes Axe To Guitar Hero's Neversoft, Shuts Down Luxoflux

Prototype developer Radical Entertainment isn't the only studio that got the axe from parent company Activision today. Sources close to and within developers Neversoft (Guitar Hero) and Luxoflux (Transformers: Revenge of the Fallen) are also being gutted.

Luxoflux, also responsible for True Crime and Kung Fu Panda games for Activision, is said to have been shut down completely, according to former employees. Approximately 55 people have been let go, according to sources at the company, with some possibly being transferred to Call of Duty developer Treyarch.

Activision is said to have laid off another 50 at developer Neversoft, formerly of the Tony Hawk Pro Skater series and responsible for the Guitar Hero series after the departure of Harmonix. With Activision executives saying yesterday that the publisher planned to ship just ten Guitar Hero and DJ Hero products this year, down from 25 SKUs last year, those cuts make sense. You know, business-wise.

Activision Shutters Guitar Hero Creators, GH: Van Halen Developers

In addition to sackings at Neversoft and Luxoflux, Kotaku has learned today that publisher Activision has also laid off employees at RedOctane and internal studio Underground Development.

We've heard that RedOctane, the publisher of the original Guitar Hero and creator of the franchise's plastic instruments, has been completely shut down. Those responsible directly for the series' hardware will now report straight to Activision, while those remaining - around 30-40 people - have been shown the door.

The closure comes less than two week's after the Guitar Hero group's boss, Dan Rosensweig, walked away from the job, and his replacement was not given the COO title of his predecessor. Which was as sure a sign as any of today's actions.

Also reportedly affected is Underground Development, an Activision studio responsible for games like Guitar Hero: Van Halen and...BMX XXX. We've heard that, as of today, the entire studio has been shut down.

Layoffs, Loss of ‘Guitar Hero’ at Neversoft

I have always felt bad for Neversoft. Their Spider-Man game on the PlayStation is a forgotten classic and a precursor to the free-roaming Spider-Man games on PS2 and beyond. Gun was a critical and financial success that was set in the wild west. Apocalypse (starring Bruce Willis) is a highly underrated third-person shooter that more-than-hints at Robotron. Rather than being known for these titles, Neversoft is known today for their work on the Guitar Hero series.

After Guitar Hero 6, they won’t even have that.

According to sources at both Activision and Neversoft, after the developer completes work on technically-unannounced-but-we-all-know-its-coming Guitar Hero 6, the publisher will hand the groundbreaking franchise over to Vicarious Visions. Vicarious Visions has some history with the Guitar Hero franchise, having worked on the Wii ports of every GH console game since Guitar Hero III: Legends of Rock. The studio works on the Nintendo DS Guitar Hero: On Tour series as well.

For a little additional creepiness, it was Vicarious Visions whom Activision awarded the Spider-Man license to create Spider-Man 2: Enter Electro.

This spells trouble for the developer. According to the same source, several members of the Guitar Hero team have been laid off (specifically several “note trackers”) and there are currently no official projects post-GH6.

UPDATE: Though there have been many layoffs at Neversoft, those who are currently working on the aforementioned Guitar Hero 6 are being kept until their jobs are complete at which time they’ll be let go. In layman’s terms — April. They’re being told today that they’ll be fired in April.

UPDATE 2: No more need to call this a rumor…

Antwon wrote:And nothing of value was lost.

Mary wrote:Jesus strawberry float, so many people out of a job. Is this the biggest set of game devs leyoffs, yet? I thought Activision were rolling in the cash? Or is it all going straight to Bobby Kotick's Spanish villa?

Oxx wrote:

Mary wrote:Jesus strawberry float, so many people out of a job. Is this the biggest set of game devs leyoffs, yet? I thought Activision were rolling in the cash? Or is it all going straight to Bobby Kotick's Spanish villa?

Lots of Modern Warfare cash. I don't think their other brands shone in quite the same way last year.

With Activision executives saying yesterday that the publisher planned to ship just ten Guitar Hero and DJ Hero products this year, down from 25 SKUs last year, those cuts make sense. You know, business-wise.

Winckle wrote:

Oxx wrote:

Mary wrote:Jesus strawberry float, so many people out of a job. Is this the biggest set of game devs leyoffs, yet? I thought Activision were rolling in the cash? Or is it all going straight to Bobby Kotick's Spanish villa?

Lots of Modern Warfare cash. I don't think their other brands shone in quite the same way last year.

Actually they made more money than any other third party publisher has ever made.

Oxx wrote:But then if you're only producing one Hero game a year, you can obviously make do with a much smaller staff.