Microsoft's latest round of brutal layoffs and studio closures have garnered more attention than usual—possibly because Phil Spencer had the gall to boast about how its gaming business has "never looked stronger" in the same announcement that saw 9,000 employees laid off across its gaming division and several major projects cancelled.
So much attention, in fact, that EA Japan's general manager Shaun Noguchi has taken to X to voice his dismay over the situation (thanks, Automaton). You might've seen 'EA' there and gone 'hold on, don't they do sweeping layoffs, too?' The answer is yes, but it's important to remember that the 'Japan' bit on Noguchi's title is important.
Due to strict labour laws in Japan, the culture towards layoffs and 'restructuring' efforts is a little different. In the best-case scenario, employees are traditionally retained for years, meaning studios have a better hold on their institutional talent. In the worst-case scenario, developers resort to using "expulsion rooms" to essentially pressure developers into quitting.
Either way, Noguchi isn't speaking from a place of personal hypocrisy—while the wider EA company might be just as gung-ho about layoffs as any other, EA Japan will be beholden to Japanese labour laws and, as such, its leadership will have a very different view on the subject.
The post (translated by Automaton and machine translation) reads: "The word 'restructure' often carries positive connotations such as rebuilding or improving efficiency and tends to be used somewhat vaguely overseas. However, in Japan, 'restructures' are very directly perceived as 'layoffs,' and their significant impact is more strongly felt.
"In recent years, there’s been a growing tendency—particularly among foreign-affiliated businesses—to demand short-term results from large-scale investments." This, Noguchi says, leads to a situation where "a change in direction is made to meet shareholder expectations before sufficient time has been invested."
In other words, you can't keep throwing the baby out with the bathwater—even if you aren't sure whether a game will do well, simply hurling years of work into the abyss to shore up a bottom line is unsustainable at best, and a callous waste of developer talent at worst.
Noguchi continues: "The gaming industry is supported by each and every creator and staff member who has diligently worked on development at the forefront. As someone in the same industry, I feel deep pain regarding this decision.
"The frustration of something built over a long time not seeing the light of day, and the reality that gamers who were looking forward to it cannot even experience it—both are truly regrettable."
Maybe I'm just worn down by cynicism—but while I wouldn't trust the honeyed words of any high-level executive in the gaming industry right now, Noguchi is being more empathetic here than some LinkedIn-brained head honchos. He is, at the very least, saying what's evident: You can't keep chasing the approval of shareholders forever.
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