RockYou Slashes 50 Percent of Staff, Dropping Loot Drop Deal

November 3, 2011 -

California-based social game developer RockYou will lay off 100 employees. Around 40 employees will be going with Playdemic, the firm RockYou acquired in January of this year. The company will sell the studio back to its founders. Around 56 employees will be downsized from RockYou’s Redwood City headquarters, leaving around 90 employees at the company. The cuts and staff moves equate to a 50 percent overall reduction of staff.

“We went too far down the creative path and lost our way in terms of being a profitable organization,” RockYou CEO Lisa Marino told TechCrunch. “While today is a tough day, I am incredibly bullish on the business going forward.”

RockYou will also be terminating its deal with John Romero's Loot Drop, according to IndustryGamers. Romero's studio is developing the game Cloudforest Expedition.

“We made a lot of mistakes in the last 12 months,” Marino told InsideSocialGames. “We built up a central studio that looks a lot like EA or Zynga with 45 heads in it when we really only needed 10 or 12. We developed two large-scale sim games — Social Life and Cloudforest Expedition — and Social Life was [canceled] in May and Cloudforest is in the process of being kicked back to Loot Drop. [Playdemic’s] Gourmet Ranch is profitable, but [the developer] is not building the core content that we want.”

“We don’t need 200 people to be a success. We got away from running RockYou as a business and we relied very heavily on the creative side of the house. What we learned this year was that was a bad strategy,” she continued.

“Cloudforest is a perfect example. We spent an awful lot developing that game and ultimately — as a power user — I couldn’t figure out how to spend more than $10 in it. It’s a beautiful frickin’ game, but it doesn’t monetize. If we can’t have a game that’s both really good and profitable, that doesn’t count as a good game to RockYou.”

Marino also believes that the company miss-stepped when it tried to add a new ad platform in its popular Zoo World social game. The company says that it has "repaired the damage," but daily active users for RockYou have declined from a high of 1.6 million in August of this year to right around 640,000.

Source: IndustryGamers

 

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Matthew Wilsonit is a game worth playing if you have a pc/360/ps304/20/2014 - 9:34pm
MaskedPixelantehttps://twitter.com/IGLevine/status/457552538343325696 The Lutece Twins show up in some of the most unlikely of places.04/20/2014 - 2:44pm
Andrew EisenAs it happens, Chinatown Wars is the only GTA game I've played.04/19/2014 - 10:43am
Papa MidnightWith GTA5 (to date) failing to even provide indication of a PC release, I'm realising that this might be the first GTA game that I have not played (outside of Chinatown Wars) since the series inception.04/19/2014 - 8:14am
IanCSo im guessing a bunch of edutainment games, which a lot of people elsewhere are going gaga over, dot count as classics? Okay. If you don't mind me, i have a sudden urge to play Putt Putt....04/19/2014 - 6:15am
MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
 

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