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I might be misreading/misinterpreting..what was the reason for the closure? The article mentions it was financial but it didn’t seem absolute.
All others were failed financially and did not recoup costs.
Basically it comes down to asking for "Cash Up Front". Expecting a cash settlement on the backend of a failed business transaction is fraught with perils of not getting your investment back in the company. And asking for severance is no different.
The point of severance is to give ex-employees a reason not to sue. However there is left point in protecting from lawsuits when there will be nothing left that can be sued. However I suspect that not paying out owed PTO may be a different story...
It's really interesting to read this perspective on what severance is in the US, because in my country it definitely is just a right everyone has so that they can land on their feet.
As I understand it, a severance usually involves the employee signing some sort of agreement.
I might be misreading/misinterpreting..what was the reason for the closure? The article mentions it was financial but it didn’t seem absolute.
Another article states that only 2 games were actually profitable. Minecraft Story Mode, and one of the Walking Dead games. All others were failed financially and did not recoup costs.
I might be misreading/misinterpreting..what was the reason for the closure? The article mentions it was financial but it didn’t seem absolute.
Another article states that only 2 games were actually profitable. Minecraft Story Mode, and one of the Walking Dead games. All others were failed financially and did not recoup costs.
Is severance normal at a startup or a game studio? I would think first priority would be contractual obligations (payroll, contractual severance, vendors, etc.) and then only then severance.
I don't think severance is normal or expected of any business teetering on insolvency.
In WA state, "Unemployment benefits are made available through taxes paid by your former employer(s) to partially replace your regular earnings and help you meet expenses while you look for another job."
Not sure what the situation is in CA but I'd hope that, in the absence of a severance package, there's something else that can help them land cleanly here...
- They really did not see a full studio closure coming so suddenly. Yes, they were aware that they were struggling, but the 25% staff reduction was supposed to keep the studio sustainable.
- They were in the planning stages for an original IP, their new leadership realized too late that expensive IP licenses were unsustainable.
- Their frantic development pace meant that they their engine was a patchwork of features cobbled together over the years, and not enough resources to rework it, despite their audiences stating that they didn't care enough to fix it. This made development a lot more painful than it should have been. They finally ditched it for Unity, but again, much too late.
- They were getting ready to move into a new office building. That's how in the dark everyone at the company was kept.
- All of these actions were caused by incompetent management, their staff was and still is amazingly talented.
Is severance normal at a startup or a game studio? I would think first priority would be contractual obligations (payroll, contractual severance, vendors, etc.) and then only then severance.
I don't think severance is normal or expected of any business teetering on insolvency.