Category Archives: Recession

I Didn't Make Any Of This Up

Making Games, By EA’s John Riccitiello:

ea-recession

Electronic Arts CEO John Riccitiello says the current economic climate is “a blessing in disguise,” because it will force the industry to rethink stagnant attitudes and methods — and lead to “clearing away” some of the “junk” that currently fills gaming retail shelves.

“Junk is hard to compete with,” said Riccitiello frankly.

“I’m not pro-recession,” EA’s Riccitiello was quick to add, “but to quote Rahm Emanuel: never waste a crisis.”

“We did get fat in too many places. It seemed like anyone who could draw a guy with a gun with a crayon could get funded.”

But Riccitiello cautioned the audience of game industry execs against simply cutting head counts, closing facilities, and reducing risk. “That’s a recipe that you follow at your peril,” he said.

Electronic Arts: We Create Irony.

I'm Just A Poor Mid Level Line Producer Whose Intentions Are Good

Only in 2009 can you have the intersection of game balance kvetching, business ethics, and charts about the Great Recession. And believe it or not, this time it’s not even me!

This was brought to my attention by a hit on my referral logs from my earlier primal scream about the omnipresent spectre of the gaming industry collapsing into a Schwarzchild radius of incompetency; namely that I’m a big whiny baby pounding at the keyboard with my hamfists.

If there is a product to work on today, the employee will have his salary. Tomorrow is another day. If there is no need for so many workers, they will no longer be employed. It’s that simple. Obviously if there will be need for some workers, the company tries to keep the better ones, fireing the underperformers. It’s obvious self-interest.

 

If the employee thought of his employer as a friend, his coworkers as a group of friends, he will feel betrayed. But whose fault it is? Actually I’ve never heard any company’s slogan to be “We are here to make our employees feel good”. They usually say “we are here to serve our customers” and mean “we are here to serve our customer’s money to our owners”. No one, ever offered the employee a “freindly helpfull group of peeps”.

Well, if your coworkers aren’t a subset of your group of friends, it may well be because you are an antisocial package of chemicals that everyone installed IM at work for specifically so they could make lunch plans without you overhearing. Most of us that have moved past the point in life where we have to wear nametags and hairnets when going to work, and now work in ‘teams’. Teams of like-minded individuals, selected in part due to personal compatibility. A key part of any employment interview process, after all, is “can we work with this person?”, which should appear closely behind “can this person actually do the job we’re looking to fill”. Both, after all, are important.

 

But beyond that, there is a small matter of business ethics to consider. There are some, like Mr. Greedy Gecko, er Goblin, who consider the only responsibility of a company to be its bottom line. Profit uber alles, and devil take the hindmost. It’s a fairly common viewpoint – who needs ethics when simple mathematics determines the victor!

But of course, there are other factors, or should be in a world that people not goblins may want to live in. Profit is all well and good and necessary, but at some point, someone may figure out that it’s cost-effective to dilute your milk with, say, I don’t know, something wacky like plastic. Of course long term, killing off your customers may hinder your bottom line. There are long term considerations.

One of those considerations involves the welfare of your employees. These are people who have engaged in a very clear bargain with you – for a given amount of money per week, they will spend that time helping you collect wealth. It’s a standard economic transaction, on the face of it. And for lower level employees, that’s also where it stops. Someone else pays you more, you move on. Shrug.

But past the point where you wear name tags and hair nets, it becomes incumbent on you to treat your assets as assets – and your team members are definitely assets. Because when the economy isn’t busy melting down into goo, they do have options – they can move elsewhere, say to places that don’t treat them as industrial cogs. So there is a certain level of capitalist self-interest there – you keep your assets happy, your assets stay with you and don’t become someone else’s.

But that’s not all of it, at least for most of us. Most effective managers see themselves as responsible for their team. Their team members rely on them to keep the engines running so that the explicit part of the bargain – come to work daily, get paid bi-weekly – continues to happen. That carries with it responsibility. The effective managers make sure their teams, and their projects, are successful, not only because it’s part of their job description to run a successful project and generate wealth, but also because your team members are relying on you to steer that ship through icebergs. Effective managers worry about this. Effective managers lose a lot of sleep about this — and I guarantee you, it’s not because they might deliver 22% less profit to the Mothership. It’s because they’re ethical.

This is not something you’d think would have to be explained in such grueling detail, but you’d be wrong. You’d be wrong because apparently the latest craze in Pinhead Public Company Management 101 involves divesting yourself of as many employees as you can before earnings reports so that your balance sheet looks good – regardless of whether or not you’re actually making a profit. Which is disturbing enough, but then you get apologetics like this who think that there’s nothing at all wrong with throwing your ‘assets’ over the side, and invalidating your implicit contract with them, solely to make a bar on a chart move from 43 to 48. You see – it’s really your fault.

However most of us get into situations when incompetent managers order us to do something obviously stupid and harmful to the company. Creating a malfunctioning product is not a crime unless it is dangerous to people’s health, yet it is stupid. The punishment for stupidity is market loss and the subsequent layoffs.

 

While employees acted as instruments of managers, this “instrument state” do not relieve them from the responsibility of their actions. They could write a memo to the higher management or simply say that “this management is stupid, I quit and find another job”. While it was a strong ape-subroutine that made them obey, they had free will to act differently. The fact that the managers would deserve layoffs more than the employees, does not change that the employees deserve it too.

I read things like this, complete with pseudo-scientific references to “ape subroutines”, and wonder if 50 years ago this guy would have been on the Warsaw Judenrat. There’s apologetics, and then there’s disturbing apologetics. (And hey, he went all Godwin first, with a somewhat disturbing equation of dissenting employees and the Nuremburg trials. I’m just finishing the neuron loop!)

 

Of course, many of us aren’t in the position exhorted by this blogger and MMO bloggers everywhere, namely that if you disagree with the direction of the company/design decisions/overuse of the color brown you should hand in your walking papers forthwith. As pointed out by a commenter to his blog:

I don’t know if you have a family that relies on you for its income, but tell me again that I’m free to quit a job at any time with 2 kids and a wife relying no me as the sole support of income.

To which the blogger responded:

Kids are investment to the future, cost a lot today but pay back well later. However a wife is a grown person who shall be able to support herself AND half of the kids. If YOU made the choice of supporting a grown person than it’s you who have to live with the consequences.

Hey, he’s got a point. I recommend octuplets. Better return on investment, donchaknow.

 

I realize this entire long blog post was the rhetorical equivalent of punching a baby, but business ethics has been something on my mind lately for fairly obvious reasons. Said blogger’s image of me as a caterwauling child ramming the keyboard with my forehead aside, I have been in the position of my failures as a team member and manager being in some way responsible for people losing their jobs. Interestingly enough, the fact that it was an eminently justifiable business decision – and in one memorable case, one I personally recommended – did nothing to help me sleep that week. Because I failed. Despite the fact that recommending a course of action that resulted in layoffs was, in a business sense the right decision – that was a failure.

And the rampant, smug self justification that we’re seeing with this year’s model of layoffs and cutbacks and corporate jets and stimulus explosions is telling me that there’s quite a few people who have no problem whatsoever sleeping. And that bothers me.

Enough to slam the keyboard with my hamfists.

Rituals Of The Betrayed

I have seen a lot of layoffs these past few years.

I have survived a number of them.

I have fallen to a few of them.

I have talked to far too many friends, on the phone, through email, through IM, over beer, watching them tear up from the sense of failure and betrayal.

Too many. Goddamned too many. In a sense, it’s easier when it’s you.

I am tired of watching impotently as my friends fall to yet another corporate earnings report and mandated change in direction and any other euphemism you care to use for “we screwed up and are damned if we’re ever going to take any responsibility for it”.

There is a deadly rhythm developing to these horrible events. The drumbeat of rumors weeks prior, the dead look in the eyes of the people who know earlier and can’t say, the worry in the eyes of everyone else as they furtively check networking sites and job listings and send emails on their private accounts.

It’s always the same. Always the fucking same.

And the people responsible – no, not the managers who actually have to wreck people’s lives up close and in person, but the higher-ups who actually made the screwups that led everyone to the cliff – they’re Out Of The Office. Off To Meetings. Not Here Today.

Responsibility. It’s a nice long word, rolls around in your mouth. Says a lot. Isn’t said much, in any way meaningful.

The part of the ritual that always gets me? The Official Statement. There always is one – the people in charge of PR can’t just let it go (or else they might be let go themselves!), they always have to weigh in with the usual Our Hearts Will Go On malarkey.

And that’s why it always gets me. Because it’s always something to the effect about how “these unfortunate events” weren’t really critical. It’s not important, those people we let go. They’re not that important. We didn’t really care about them, you see. It’s unfortunate, sure, but we have great things in store, just you watch! We’re not set back in any way, no sirree bob! Everything’s GREAT!

Everyone knows it’s what companies say – everyone knows it’s what companies have to say.

And it’s the final act of betrayal. That final kicking dirt on the guy as he heads out the door with his action figures and Best Employee Of The Year trophies in a box that was helpfully set out in the hallway the night before. Because it’s not enough that you let that guy go after he gave his all for your bottom line, it’s not enough that you had to force him out into an economy that is anything but welcoming. No, not only did you wreck his life and reward his loyalty with a pink slip and a packet about COBRA coverage, you then got to announce to Teh Intertubes that in the grand scheme of things he wasn’t really that important.

You know what? Everyone reading those releases knows it’s a ritual. And it’s a ritual that sucks. It’s IMMORAL. It lies. It lies to your customers, your stockholders and the employees that remain in fear of their continued livelihood.

It’s the final gratuitous act of betrayal. It always happens. And it always sucks.

I remember when I had one of those *on the radio*. I had been let go from a dot-com company in mid-collapse, in 2001, and escorting my shocked and awed arse out the door was a press release that said that those let go were “underachievers”.

Thanks, guys! I’m sure that’ll look good on my job application. Underachiever Class of 2001. Way to reward working long hours and surviving layoff after layoff and wondering when I’d be the next.

Corporate loyalty is a LIE.

Maybe someday I’ll be in a position to change that.

Or maybe I’ll just keep impotently raging into chat windows.

Noted Industry Analyst Exhorts Small People To Be Quiet, Comments That His Sports Car Requires Work

I don’t think (online multiplayer games) get impacted at all (by the current recession), because people who play them are addicts … Losing their jobs makes them more likely to play because they have more time to play.

– Michael Pachter, gaming industry analyst

(via Massively) (explanation of post title for you newer addicts)