Japanese mobile company DeNA has laid off a significant number of North American employees, it has been revealed today.
The job losses are taking place at the company's San Francisco and Vancouver offices, and while exact numbers aren't forthcoming at the moment, the layoffs are said to be "significant".
The timing is rather odd, as DeNA has just signed a deal with Nintendo which is expected to bring in bumper profits. Also, it was revealed yesterday that DeNA's most recent release -Final Fantasy: Record Keeper - had already surpassed the 1 million-download milestone since its March 24th launch.
DeNA has issued the following statement:
DeNA Group is continually evaluating its game development operations to ensure that it's structured in the best possible way to deliver high-quality mobile games to consumers worldwide. As a part of this process, we have decided to reshape the structure of our North American studio operations along with a reduction in workforce. We appreciate their contributions to DeNA and are grateful for the opportunity to have worked with them.
The West will continue to be one of our core markets for our mobile gaming business, and this decision has no relation to our alliance with Nintendo or the popularity of Final Fantasy Record Keeper.
David Phan - product manager at DeNA Studios Canada - confirmed the losses on social media:
Today is a sad day as DeNA West as many of us, myself included, were laid off as part of a significant staff reduction. There are many of us who are great at what we do and are passionate about our work. There's a lot of good people ready to start new opportunities. Please consider bringing on board some these ex-DeNAers, as they will contribute great things to your team.
Does this bode ill for Nintendo's new alliance? Let us know what you think about this news by posting a comment.
[source venturebeat.com]
Comments 27
It's probably because of the Nintendo deal. They're going to have Nintendo making games for them now, so no need to have quite as many of their own staff. No point in competing with yourself.
Can't help but worry about actions like this from DeNA after signing such a massive deal with Nintendo. I would hope DeNA made Nintendo aware of what they were going to do before signing the deal.
Pretty clear to me. With the deal with Nintendo now they want to move work force into Japan, so lay offs outside Japan are expected. I also expect them to hire people in Japan.
Makes sense from a business standpoint, terrible from a worker's standpoint.
I just don't get it. It really makes no sense to me. I just feel sorry for those workers' families that are now going to have to focus on nothing but bringing in enough money to pay their bills. I really hope DeNA have actively taken steps to help them find other jobs, because otherwise this was just a **** move on their part.
@Peach64 I was going to post almost the same thing. I'm sure they will be using a lot of Nintendo's resources.
That is just the nature of the industry. I will also give a okay to Record Keeper. I have been playing it since I've been on the road the past few days. While it still has the sins of most F2P games, it isn't in your face about it and is still playable without investing money (just uses the other commodity of grinding away your time).
@manu0 Makes sense. Sucks for the NA employees though.
If it has anything to do with Nintendo, I think the last thing Nintendo needs is to distance themselves even more from western development. But oh well
@Peach64 Is nintendo making them though? I thought it was DeNA getting the License for them.
"DeNA doesn't care about white people"
Sucks for these ex-DeNAers. I wish them the best of luck on their next employment endeavors.
So, now their partner has control over who can be fired? This is not a good sign, methinks.
Whenever an Acquisition or a Merger happen in the Business World, there are ALWAYS layoffs.
It sucks if you are the one being laid off though!
@Peach64 Nintendo isn't going to make the mobile games, DeNA will.
I doubt it means ill health - just that the Nintendo deal allowed them to do some operational restructuring (I.e. get rid of bad people and overpaid positions).
@Octane Nope, Nintendo were quite clear they're the ones making all the games.
https://www.nintendolife.com/news/2015/03/nintendo_to_lead_design_and_development_of_smart_device_games_but_shigeru_miyamotos_priority_remains_the_wii_u
@MasterBlaster
LOL
Seriously sucks for those workers though. Would have thought they'd expand rather than downsize but guess they want to take full advantage of Ninty's resources.
Minimum expenditure, max profit. Nintendo make the games, they develop the services.
I wish nothing but the best of luck to those that lost their jobs.
Just comes to show how uncontrollable the mobile market is. And while I don't think this is gonna diminish the impact of DeNA's partnership with Nintendo, I think it's a bad sign for DeNA itself. After all, the Nintendo deal isn't supposed to replace their own projects, but get added to them, so this staff layoff looks like they're overestimating their "power".
I could only wish the ex-DENA workers the best of luck. Hopefully the only people getting fired are the lazy workers. I hope DENA of Japan is doing fine as well, because most if not all there mobile games are better than most of other mobile games.
@Ronoh
If you don't work for DeNa you have nothing to worry about. It is sad but as has already been mentioned several times this always happens after deals like this.
@TheRegginator
Why shouldn't it be on here?
@Operative You're so not kidding there. If that isn't the truth, I don't know what is.
Now if only Americans could be wise in light of this news and not purchase any of Nintendo's mobile games. That is the most ignorant direction Nintendo has ever taken. It defies everything Nintendo has ever stood for. Nintendo used to be all about gaming independently. High quality game systems, innovation, physical copies of games, family friendly, affordable, reliable, and better than any other. Now they are garbage. Money hungry, lost inspiration and innovation, and want you to only have digital games which are excessively over priced. And worse yet, they are basically just rentals. You never own a digital game (read the terms of service on them!). But you always owned the physical copies. Nintendo, I am so ashamed that I spent decades heavily promoting you, only to see you turn to THIS. I'm absolutely disgusted.
@TheRegginator Why shouldn't it be on here? It's new about Nintendo's new business partner, and probably has something to do with their recent deal with Nintendo in fact.
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