EA Japan GM Speaks Out on Microsoft Layoffs and Game Cancellations

Microsoft’s recent announcement of significant layoffs has sent shockwaves through the gaming industry. With major cancellations like the much-anticipated Everwild and Perfect Dark reboot, the tech giant’s decision to trim down its gaming division has stirred heated discussions. EA Japan’s general manager, Shaun Noguchi, voiced his concerns on the matter, pointing out the increasing pressure on companies to deliver short-term results to appease shareholders.

This, he believes, has led to the premature cancellation of games that were still in development, leaving both developers and players devastated.

On July 3, Microsoft laid off around 9,100 employees across various divisions, including the gaming sector. The company’s decision to cancel long-awaited projects like Perfect Dark and Everwild raised questions about the future of these titles, which had been in development for several years. In a memo shared with the affected employees, Microsoft Gaming CEO Phil Spencer cited a focus on “strategic growth areas” and a need to “streamline management” as reasons for the layoffs. However, Noguchi believes that this restructuring is more about prioritizing quick returns, rather than long-term development.

For Noguchi, the cancellation of games after years of work is a hard pill to swallow. He sympathizes with the developers who poured years of their lives into these projects, only for them to be discarded. While acknowledging that sometimes games do fall into “development hell,” he argues that canceling projects after such a long time is one of the worst outcomes. In his opinion, even if the final product isn’t perfect, it should still be released. After all, a finished game, no matter how flawed, is better than no game at all. He also criticizes the premature announcement of games, which often results in inflated expectations and a loss of trust when projects are eventually canceled.

The layoffs at The Initiative, the studio responsible for Perfect Dark, and the cancellation of a mysterious MMORPG at the studio behind The Elder Scrolls Online are particularly hard-hitting. These moves reflect a broader trend in the tech industry, where companies are increasingly focused on immediate returns at the expense of long-term creative efforts. In Japan, labor laws make mass layoffs like those seen in the U.S. less common, but Noguchi notes that financial pressures on companies still lead to alternative methods of downsizing, such as offering buyouts or creating “expulsion rooms” to push employees out.

As the gaming community processes these decisions, the industry remains divided on the best course of action. While some believe that projects should be canceled if they are not progressing, others, like Noguchi, argue that the value of a decade of work should not be tossed aside without a final product. In the end, it’s clear that the balance between creative development and corporate interests remains as precarious as ever.