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EA Japan GM Criticizes Microsoft Layoffs and Game Cancellations Like Everwild

▼ Summary

Microsoft announced major layoffs affecting 9,100 employees, including closures of game studios like The Initiative and cancellations of titles like Everwild and Perfect Dark.
– EA Japan’s Shaun Noguchi criticized the trend of prioritizing short-term shareholder results, lamenting game cancellations after years of development.
– Microsoft framed the layoffs as restructuring to streamline management and focus on high-potential gaming projects, per CEO Phil Spencer’s memo.
– Japan’s labor laws make mass layoffs rare, with companies instead using gradual workforce reductions or controversial tactics like “expulsion rooms.”
– Noguchi and Xbox co-creator Seamus Blackley argued that troubled games deserve release to honor developers’ efforts, despite risks or delays.

The recent wave of layoffs at Microsoft has sparked intense debate within the gaming industry, particularly after the cancellation of high-profile projects like Rare’s Everwild and The Initiative’s Perfect Dark reboot. Among those voicing criticism is Shaun Noguchi, General Manager of EA Japan, who took to social media to express his concerns about corporate decision-making prioritizing short-term gains over long-term creative investment. While clarifying that his views were personal and not representative of EA, Noguchi highlighted a growing trend among multinational companies to sacrifice projects, and careers, in pursuit of immediate shareholder satisfaction.

Microsoft’s restructuring efforts resulted in approximately 9,100 job cuts across its global workforce, including the shuttering of studios like The Initiative and the abrupt cancellation of an unannounced MMORPG from the developers behind The Elder Scrolls Online. In an internal memo, Microsoft Gaming CEO Phil Spencer framed the move as necessary for “strategic growth,” emphasizing the need to streamline operations and focus on high-potential projects. Yet, for many developers and industry observers, the human cost of these decisions remains difficult to justify.

Noguchi’s critique centered on the cultural differences in how restructuring is perceived. “In Japan, the term carries a far heavier weight, it’s synonymous with layoffs and upheaval,” he noted, contrasting it with the more sanitized corporate language often used overseas. He pointed to the pressure on foreign-affiliated firms to deliver rapid returns, which frequently leads to mid-development pivots or outright cancellations before projects have a chance to mature. The fallout, he argued, erodes trust, not just among players anticipating new games, but also among developers whose years of effort vanish overnight.

Japan’s labor laws make mass layoffs far less common than in Western markets, requiring companies to navigate complex legal hurdles or resort to indirect methods like voluntary buyouts. For instance, when Final Fantasy Brave Exvius developer Gumi faced financial strain, it offered incentives for employees to resign rather than enact forced cuts. However, some firms have employed controversial tactics, such as so-called “expulsion rooms,” where workers are isolated with no tasks, a psychological nudge toward quitting. Reports suggest Bandai Namco allegedly used this approach last year to reduce headcount.

Noguchi expressed empathy for the affected Microsoft employees, stressing that “the industry thrives on the dedication of every individual behind the scenes.” He lamented the loss of unreleased games, not just for developers but for players deprived of potential experiences. When asked whether prolonged development cycles justified cancellations, he argued that even flawed releases are preferable to wasted effort: “A decade of work represents a significant chunk of a developer’s career, discarding it outright feels like an insult to their craft.”

Echoing this sentiment, original Xbox co-creator Seamus Blackley remarked on Bluesky that “great games often emerge from turbulent development,” cautioning against corporate aversion to risk. His perspective underscores a broader tension in the industry between financial pragmatism and creative ambition, one that continues to shape the future of game development amid ongoing consolidation and restructuring.

The conversation around Microsoft’s cuts reflects deeper anxieties about sustainability in gaming, where the pursuit of efficiency increasingly collides with the human and artistic dimensions of the medium. As studios grapple with these challenges, the fallout serves as a stark reminder of what’s at stake when corporate strategy overlooks the people who bring games to life.

(Source: IGN)

Topics

microsoft layoffs 95% game cancellations 90% corporate restructuring 85% short-term shareholder focus 80% japan labor laws 75% developer empathy 70% creative investment vs financial pragmatism 65% industry sustainability 60%
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