News from the lovely world of the Games Industry.

[Syt]

https://www.pcgamer.com/activision-blizzard-ceo-audaciously-claims-that-sexism-and-harassment-problems-were-made-up-by-an-aggressive-labor-movement-trying-to-destabilize-the-company/

Activision Blizzard CEO audaciously claims that sexism and harassment problems were made up by an 'aggressive labor movement' trying to 'destabilize the company'
Bobby Kotick said in a new interview that there was never any "systemic issue with harassment" at his company.


In a new and frankly embarrassing interview with Variety, Activision Blizzard CEO Bobby Kotick said there's actually never been a problem with "systemic" harassment at the company, and that reports of such things were mainly the result of unions trying to cause trouble.

2021 was a very bad year for Activision Blizzard. In July of that year, California's Department of Fair Employment and Housing—now known as the Civil Rights Department—filed a lawsuit alleging widespread discrimination and sexual harassment at the company; that was followed by other investigations, the departure of numerous high-level employees, apologies, fines, multiple additional lawsuits, and significant pushback from employees, who founded the ABK Workers Alliance to help drive unionization efforts and bring about other meaningful change at the company.

Despite all of that, Activision Blizzard's board of directors said in June 2022 that, after conducting its own internal investigation, there was no evidence of systemic gender-based misconduct at the studio. Now, Kotick is not only sticking to that story, he's taking it a step further by pointing the finger at labor organizers.

"We've had every possible form of investigation done," Kotick said. "And we did not have a systemic issue with harassment—ever. We didn't have any of what were mischaracterizations reported in the media. But what we did have was a very aggressive labor movement working hard to try and destabilize the company."

That's certainly audacious, but it fits a new approach Kotick is apparently taking: He told Variety that his mistake when the allegations about widespread misconduct at Activision Blizzard first came to light was not forcefully defending the company and himself against them. "I wouldn't be sitting here talking to you if any of what you read in the inflammatory narrative was truthful," he said.

Ironically, Kotick also insisted that he is not "anti-union," and in fact claimed that he's "the only Fortune 500 CEO who's a member of a union." That would be SAG-AFTRA, the union representing film and television actors, journalists, and other related industry professionals, which he joined in 2011 after being cast as Oakland A's co-owner Steve Schott in the Brad Pitt film Moneyball.

"If we have employees who want a union to represent them, and they believe that that union is going to be able to provide them with opportunities and enhancements to their work experience, I'm all for it," Kotick said. "I have a mother who was a teacher. I have no aversion to a union. What I do have an aversion to is a union that doesn't play by the rules."

The record would seem to indicate otherwise. In January 2022, for instance, Activision Blizzard refused to voluntarily recognize a union formed by QA testers at Call of Duty studio Raven Software; it wasn't until June of that year that it changed direction, not long after Microsoft—which is in negotiations to acquire Activision—said that it will not oppose the union if and when it takes over. In October 2022, the US National Labor Relations Board found that Activision Blizzard had withheld pay raises at Raven in retaliation for their roles in union organization; in January 2023, workers at Activision Blizzard studio Proletariat [ ] announced that they had dropped their request for a union vote because studio CEO Seth Sivak was "making a free and fair election impossible."

The Communications Workers of America, the labor organization that's been leading game industry unionization efforts, rejected Kotick's characterization. "Corporations choose to be disruptive when they run anti-union campaigns," CWA communications director Beth Allen told Variety. "Workers who join together to improve their workplaces intend to make constructive changes for the benefit of all. When employers voluntarily recognize unions and engage in good faith contract bargaining, it builds trust and strengthens companies."

Activision Blizzard has also previously acknowledged that misconduct at the company is in fact a problem. In March 2022, for instance, it paid $18 million to settle a sexual harassment lawsuit filed against it by the Equal Employment Opportunity Commission. Other lawsuits remain in motion, but Activision Blizzard has begun pushing back on that front too. In December 2022, it filed a lawsuit against California's CRD alleging that the agency had moved improperly slowly with the case and withheld information regarding its contact with media and unions.

In late 2021, PC Gamer spoke to three ex-Blizzard employees whose stories also disagree with Kotick's claims: They said among other things that inappropriate workplace behaviour, fuelled in part by an out-of-control drinking culture, was excused by management, and that women in their departments struggled to receive the same recognition as men.

Kotick also touched on Microsoft's in-the-works acquisition of Activision Blizzard, saying that "Microsoft is by far the best place for us to be" and that the deal makes particularly good sense in light of the rising cost of game development, especially "compensation for talent." But he added that the company will probably be okay if the acquisition is ultimately blocked: Activision Blizzard is currently sitting on roughly $12.6 billion in cash, and will gain another $3 billion on top of that from Microsoft as a penalty if the deal falls through.

[Valmy]

Everybody hates Kotick and he has no credibility. How he has remained CEO is beyond me, sure he is shitty and terrible for both customers and employees and generally hated by anybody in the general public who is aware of his existence.  But maybe he is good for investors somehow? Maybe taking companies with sterling reputations and making them a byword for shitty products and abusive labor practices during your entire tenure is good for business. I don't know. Capitalism makes no sense.

People who are obviously incompetent remain in high paying jobs at the tops of companies they are steering right into an iceberg remain in place for years. I never get it.

[Grey Fox]

Because Warren still likes him.

[The Brain]

Activision Blizzard has also previously acknowledged that misconduct at the company is in fact a problem. In March 2022, for instance, it paid $18 million to settle a sexual harassment lawsuit filed against it by the Equal Employment Opportunity Commission.

Do settlements always mean that you have acknowledged what they claim you've done (I understand that settling looks like you've done something opticswise)? Or may it do so, and if so does this settlement?

IIRC they have made comments that acknowledge bad stuff (see upthread), my question is about settlements not about Activision Blizzard per se.

[Barrister]

Activision Blizzard has also previously acknowledged that misconduct at the company is in fact a problem. In March 2022, for instance, it paid $18 million to settle a sexual harassment lawsuit filed against it by the Equal Employment Opportunity Commission.

Do settlements always mean that you have acknowledged what they claim you've done (I understand that settling looks like you've done something opticswise)? Or may it do so, and if so does this settlement?

IIRC they have made comments that acknowledge bad stuff (see upthread), my question is about settlements not about Activision Blizzard per se.

In civil litigation it's not uncommon to have a "no admission" settlement, where you pay but specifically state you don't admit to doing anything wrong.

[The Brain]

Activision Blizzard has also previously acknowledged that misconduct at the company is in fact a problem. In March 2022, for instance, it paid $18 million to settle a sexual harassment lawsuit filed against it by the Equal Employment Opportunity Commission.

Do settlements always mean that you have acknowledged what they claim you've done (I understand that settling looks like you've done something opticswise)? Or may it do so, and if so does this settlement?

IIRC they have made comments that acknowledge bad stuff (see upthread), my question is about settlements not about Activision Blizzard per se.

In civil litigation it's not uncommon to have a "no admission" settlement, where you pay but specifically state you don't admit to doing anything wrong.

Then I get the feeling that the article may have overstated things.

[Valmy]

Then I get the feeling that the article may have overstated things.

Sucker. Never believe that guy. Kotick is, at best, dishonest in presenting facts.

[The Brain]

Then I get the feeling that the article may have overstated things.

Sucker. Never believe that guy. Kotick is, at best, dishonest in presenting facts.

[grumbler]

Activision Blizzard has also previously acknowledged that misconduct at the company is in fact a problem. In March 2022, for instance, it paid $18 million to settle a sexual harassment lawsuit filed against it by the Equal Employment Opportunity Commission.

Do settlements always mean that you have acknowledged what they claim you've done (I understand that settling looks like you've done something opticswise)? Or may it do so, and if so does this settlement?

IIRC they have made comments that acknowledge bad stuff (see upthread), my question is about settlements not about Activision Blizzard per se.

In the 2018 settlement, Activision Blizzard acknowledged that their procedures for investigating sexual misconduct didn't meet EEOC standards and agreed to revise them to conform to the law.  The SEC is investigating whether or not their failure constituted a failure of their duty to their stockholders.

So, yeah, they have acknowledged at least procedural misconduct.

[Syt]

Epic is kicking out 800+ people and also get rid of Bandcamp which they bought in the ancient past of *checks notes* 2022.

https://www.rockpapershotgun.com/epic-lay-off-830-people-thanks-to-unrealistic-metaverse-ambitions

Epic lay off 830 people thanks to "unrealistic" metaverse ambitions

"For a while now, we've been spending way more money than we earn", concedes CEO

Unreal Engine and Fortnite publisher Epic Games are making an absolutely enormous round of job cuts. As announced by billionaire founder and CEO Tim Sweeney in an email to staff today, the company will lay off approximately 830 people, totalling "around 16%" of their workforce, in order to achieve "financial sustainability" following a period of heavy investment and lower-than-hoped returns from Fortnite.

"For a while now, we've been spending way more money than we earn, investing in the next evolution of Epic and growing Fortnite as a metaverse-inspired ecosystem for creators," Sweeney wrote in the letter. "I had long been optimistic that we could power through this transition without layoffs, but in retrospect I see that this was unrealistic.

"While Fortnite is starting to grow again, the growth is driven primarily by creator content with significant revenue sharing, and this is a lower margin business than we had when Fortnite Battle Royale took off and began funding our expansion. Success with the creator ecosystem is a great achievement, but it means a major structural change to our economics.

"Epic folks around the world have been making ongoing efforts to reduce costs, including moving to net zero hiring and cutting operating spend on things like marketing and events. But we still ended up far short of financial sustainability. We concluded that layoffs are the only way, and that doing them now and on this scale will stabilize our finances."

Two-thirds of the layoffs are in teams "outside of core development", Sweeney added. The company "aren't cutting any core businesses," he wrote, "and are continuing to invest in games with Fortnite first-party development, the Fortnite creator ecosystem and economy, Rocket League and Fall Guys." Epic also hope to avoid delaying any upcoming releases, including the next season of Fortnite and Fortnite Chapter 5, though Sweeney cautioned that "some [products] may not ship when planned because they are under-resourced for the time being."

As part of their bid to cut costs, Epic will also divest from Bandcamp, the audio distribution platform they acquired in 2022, and are spinning off most of SuperAwesome, a company that builds parental consent management tools for developers making games for kids, which Epic acquired in 2020. Bandcamp will become part of music marketplace Songtradr, while SuperAwesome are going independent, though Epic will retain ownership of SuperAwesome's Kids Web Services.

Sweeney insisted in the letter that "Epic's prospects for the future are strong" thanks to Unreal Engine and Fortnite. He's equally bullish about the future of Project Liberty, Epic's grandiose legal soap opera battle with Apple and Google over whether or not Epic should be able to sell Fortnite stuff via their services. "We've been taking steps to reduce our legal expenses, but are continuing the fight against Apple and Google distribution monopolies and taxes, so the metaverse can thrive and bring opportunity to Epic and all other developers."

Best of luck to all Epic staffers facing the chop today.

Renaming this thread to general games industry stuff, btw.

[Jacob]

I agree that Epic's future prospects are strong. They are are already the clear market leader when it comes to AAA game engines and their position is only getting stronger. Fortnite is still strong.

The Epic Game store is not going that well, as I understand it, and other initiatives have varying levels of success - but their core businesses are going strong.

Doesn't mean they can't fuck it up with poor executive strategy, but tightening up seems the right move from a corporate perspective - even if it sucks for the people who are laid off

[Barrister]

I agree that Epic's future prospects are strong. They are are already the clear market leader when it comes to AAA game engines and their position is only getting stronger. Fortnite is still strong.

The Epic Game store is not going that well, as I understand it, and other initiatives have varying levels of success - but their core businesses are going strong.

But that's just it - Epic has only ever had to really huge successes - the Unreal engine, and Fortnite.

I don't really see Unreal engine going away or being supplanted as long as they don't screw it up, but I do wonder how Fortnite can continue to be successful for year after year (though they've done a good job of it so far).  Those two have given Epic such a firehouse of money that they've made numerous investments, but I don't know how well any of them have really paid off for them.

[Jacob]

Yeah, I don't disagree with you.

Betting on the Metaverse was not a smart move, IMO. I project the Metaverse to not be a success.

[Sheilbh]

Yeah it's obviously very bad for the people who've been laid off. But if I went to a company all hands or town hall and the boss was saying they're going big on the Metaverse, I'd start preparing my CV.

[Syt]

Well, I guess Lamplighters League didn't pan out for Harebrained Schemes/Paradox.

I guess HS's forte is more with licensed IPs with established fanbases (Shadowrun, Battletch)?

https://www.pcgamer.com/paradox-says-the-lamplighters-league-sales-were-a-big-disappointment-confirms-recent-layoffs-at-developer-harebrained-schemes/

Paradox says The Lamplighters League sales were 'a big disappointment,' confirms recent layoffs at developer Harebrained Schemes

By Andy Chalk published about 13 hours ago

The layoffs at Harebrained Schemes actually occurred a few months before The Lamplighters League was released.

Paradox Interactive is taking a big financial hit on the turn-based tactics game The Lamplighters League, saying that sales of the game have been "a big disappointment." Paradox also confirmed that significant layoffs had been made at developer Harebrained Schemes, but clarified that those layoffs occurred in the summer, a few months before The Lamplighters League was released.

The Lamplighters League, a pulp-inspired tale of a secret society battling an army of the occult in the 1930s, looked potentially interesting when it was revealed in March, in part because it was being developed by Harebrained Schemes, the studio behind the Shadowrun RPGs and the excellent tactics game Battletech. But it never really seemed to gain much traction with gamers in the months leading up to its release in October, and the final product was not great: It's "an over-ambitious and technically flawed tactics game that can't live up to its more accomplished influences," we said in our 62% review.

Just one week after release, publisher Paradox Interactive has decided to throw in the towel, essentially saying that it's eating the cost of making the game as a loss to the tune of 248 million Swedish kronor—roughly $22.8 million. Paradox said the decision to write down the development expense was made after The Lamplighter League's release, when sales failed to reach expectations.

"The Lamplighters League is a fun game with many strengths," Paradox CEO Fredrik Wester said in a press release. "Even though we see cautiously positive player numbers in subscription services, the commercial reception has been too weak, which is frankly a big disappointment. Game projects are by their nature always risky, but at the end of the day we haven't performed at the level we should. It is painful but makes us more eager to roll up our sleeves and do better."

That assessment is borne out on Steam, where The Lamplighters League has a "mostly positive" user rating but dismally low player numbers. According to Steam Charts, the game's all-time peak concurrent player count was just 690, less than half of today's peak concurrent player count for Battletech, which was released in 2018. That doesn't tell the whole tale, as The Lamplighters League is also available on Xbox consoles, and the "cautiously positive player numbers in subscription services"—that is, Game Pass—would presumably give it a bump on that platform. But this quick reaction from Paradox is a pretty clear indication that no one is expecting a meaningful turnaround.

Paradox isn't washing its hands of The Lamplighters League completely at this point: In a statement provided to PC Gamer, a Paradox representative said it is "still working on our post-launch support plan," although no details on that plan were provided.

"The commercial performance of the game is at a level well outside of our expectations," the rep said. "As we have lowered our forecast for revenues, we are also obligated to write down the game's book value to match the lower revenue expectations. This is unusual for us. As a publicly traded company, we are obligated to issue a press release regarding a write-down of this size.

"At present we have no changes to the game's post-launch plan."

The failure of The Lamplighters League also brought to light reports of layoffs at Harebrained Schemes: One person claiming to be a former employee of the studio said on the Resetera forums that roughly 80% of the studio's employees had been laid off in July, and multiple former employees have said on social media that they had been let go by the studio in that time frame.

The Paradox rep declined to provide numbers but confirmed that layoffs had taken place prior to The Lamplighters League's release, saying that "Harebrained Schemes' staff was significantly reduced over the summer as the game entered its last phase of development and launch preparations."

Yikes.