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  Lego Buys NetDevil's Lego Universe Team, Lays Off Staff
by Eric Caoili [Social/Online, Business/Marketing]
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February 24, 2011
 
Lego Buys NetDevil's  Lego Universe  Team,  Lays Off Staff

As Lego announces that it's purchased NetDevil's Lego Universe team and taking over development of the MMORPG, the Colorado-based studio has laid off a substantial number of its staff.

NetDevil initially took on Lego Universe's development as a work-for-hire project, launching the subscription-based game last October. Lego Group, owners of the Lego toy brand, has purchased the online game's development team and offices, and has reportedly started laying off workers.

Several staff members who were made redundant began hinting at the layoffs last night by posting images of a "NetDevil R.I.P." tombstone on Facebook. Former character and creature animator, Toby Cochran, also posted a confirmation of his and others' terminations from the developer.

"We were all told we were 'safe' just a week or so ago, and last night the first couple of people let go were posting on Facebook," explains Cochran. "Then all hell broke loose on Facebook and everyone was getting anxious; it was a total surprise to be getting a call saying you lost your job."

He added, "From what we've been told, a handful of artists will be kept on board [to] continue working on Lego Universe. But at the moment that will be a very, very small team. As the count continues to rise on Facebook, they've cut over 20 people."

The developer's workers who haven't been absorbed by Lego or laid off will relocate to a nearby office and continue work on browser-based online action RPG Fortune Online, according to a report from Big Download. NetDevil is also working on another MMORPG called Jumpgate Evolution.

Founded in 1997, NetDevil had more than 100 full-time employees before the layoffs, according to the company's official site. Its shipped titles include Jumpgate, Auto Assault, Warmonger: Operation Downtown Destruction, and most recently Lego Universe.

NetDevil was purchased in 2008 by Gazillion Entertainment, which also owns The Amazing Society, Secret Identity, and Slipgate Ironworks. The San Mateo-based publisher raised $60 million in November 2010 as it prepared to enter "a key phase of expansion."

"The transition of members of our team to the Lego Group allows us to conclude the work-for-hire segment of NetDevil's business and lets us expand our internally-published, free-to-play game businesses based on our own properties and licensed properties," said Gazillion president David Brevik.

Brevik added, "Gazillion is wholly focused on developing, operating, and publishing the next generation of browser-delivered games. We're proud of the Lego Universe game that our team built, and we are certain that it has a bright future."

[UPDATE: Gazillion spokesman Keith Mutzman has confirmed to Gamasutra that "less than a quarter" of the Lego Universe staff have been let go in the transition.]
 
   
 
Comments

Joe Rheaume
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That really sucks. I played the Beta and thought the designers did a wonderful job. I hate to see that rewarded with a buyout and layoffs.



I would have bought Lego Universe and subscribed if it weren't for Minecraft, but now I definitely won't bother.



Here's hoping the devs get snapped up soon! Their talent shouldn't go to waste.

Martain Chandler
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A Long Time Ago my son wanted to be a game designer like his ole dad, so I suggested he read Gamasutra. After years of reading how game companies relentlessly mistreat their employees, he's decided to try robotic engineering. He's doing quite well, and, frankly, I'm relieved.

Jeffrey Crenshaw
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Glad to hear that about your son.



This article sickens me, and it's not uncommon. I will do more research to make sure I'm not just jumping the emotional gun, but that's hardly ever the case in situations like this (having read about plenty and been through them myself). They don't say anything until sometime on the Friday afternoon that they're letting people go, then you're clearing your desk with your boss or security looking over you as if you are a criminal. For my first layoff, we had to sit in a room having it explained to us while the people that were not getting the ax went home, meaning we didn't even get to say goodbye to the friends we had developed.



I don't care what the business/legal justifications are, the speed at which corporations kick their employees to the curb when things are going wrong and the way they do it so callously is _unethical_ and needs to be stopped.



This isn't about ranting in articles and looking the other way anymore, _I demand reform_. Who is with me?

Kim Pittman
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Being told your job is safe and then being let go is just painful. Honesty and communication are more important than anything in this case. Imagine the anger and upset that could have been avoided with a simple "We don't know. We have to wait and see."



Good luck finding new positions.

Adam Moore
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So, what does this mean for the future of Lego Universe? Will there be continued development or is Lego's plan to simply let the game stagnate and die?

Joe McGinn
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Sounds like the latter Adam ... which strikes me as a fundamental misreading of the video game business by people who don't understand it. Online games are a service, not a develop-and-forget model like movies or boxed product. This therefore strikes me as a stunningly incompetent move on Lego's part.

Christopher Thigpen
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More like the former.

Frank Pedersen
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LEGO is certainly not letting LEGO Universe stagnate - most of the people previously working on the game at NetDevil is still working on the game. Now as LEGO employees in the exact same office.

Jason Lee
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I think the key thing that people are mis-reading and/or misunderstanding regarding this article is that the Lego Universe MMO was originally put together and designed as a "work-for-hire project". Take this as you will, but that essentially translates to "contract-for-hire". Some people stay on, others get let go. It's called interim, with the possibility of permanent employment down the road.



It seems like (or at least according to the article), that LEGO and Gazillion Entertainment made this call as a necessary business decision. Sounds like a win/win situation in the long run, albeit minus the unfortunate situation regarding layoffs of particular personnel. That's just the nature of business.

Todd Boyd
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Then why are they surprised, and why are they being called "lay-offs"? Wouldn't it be "contract completions" instead, and wouldn't they be notified (more than a day) in advance?!

Jeffrey Crenshaw
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And why were they told they were safe just a week earlier? People with the power to fire others in this industry have and use the luxury of keeping their cards close to their chests, keeping employees constantly on edge and making it difficult for employees to properly plan their short term career development (early job hunting while they still have a job, which can only help their negotiations). I am frankly getting sick of companies expecting two weeks notice when people quit but giving no notice when people are laid off.



And, no personal offence, but I am getting absolutely, _absolutely_ sick of the "it's just business" excuse and its ilk. Layoffs hurt people and are not as unavoidable as the six-seven figure higher ups want us to believe. We need to evolve past this mass complacency; yes, the economy is bad, but if we let the strong do what they want with the weak under the false, ludicrous notion that the economy is justifiably and inescapably a matter of "survival of the fittest", then only the fittest will survive. And only a handful at that.

Andrew Wojtkowski
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As a LEGO Universe player, along with my fiance and her son, I say.... ABSOLUTELY YES!



NetDevil has done a horrible job with LEGO Universe. I will try not to use hyperbole, but I've been an avid online gamer for about 10 years, buying a majority of titles on release, and NetDevil's design and support team was the absolute worst, tailed only slightly by KRU Interactive.



I paid $150 for 3 copies of this game so the 3 of us could play together... and there was no grouping system. In an MMO. You could not, except for a few areas, team up with people. The game's beta had almost twice as much content as its release. It felt very deceptive.



The only place LEGO Universe can go is up at this point. I don't have very high hopes for LEGO, but I hope the people who are behind some of the egregious errors in the development of LEGO Universe are the ones who were let go.



Jeffrey, I'd agree with you in any other instance... but do not let your personal feelings about the nature of layoffs get in the way of the fact that NetDevil has done a horrible job at developing and maintaining the game. LEGO is trying to save a sinking ship. It might be too little, too late... but in this PARTICULAR instance, these layoffs were warranted. Again, depending on who was laid off.


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