The parent company NCSoft in September 2018 has already dismissed one of their teams.
ArenaNet studio (Guild Wars) management told staff that they are planning a major downsizing. While the exact number of workers who will lose their seats is unknown, however, according to Variety , it’s about a third of the state. In total, ArenaNet employs 400 people.
The director of NCSoft West, which owns ArenaNet, told employees in e-mails that revenue from online games has fallen over the years as franchises grow old and production of some titles is delayed while costs increase. In the current state of the company is unstable. In this regard, ArenaNet will become part of the NCSoft publishing division.
In recent years, the ArenaNet team has worked on several unannounced projects, but the lingering production and lack of releases in 2018 and 2019 led the company to a difficult financial situation.
NCSoft began to cut costs in September 2018, when it closed the studio Carbine (Wildstar). In early 2019, the company announced a reduction in the state of Iron Tiger Studios, working on mobile applications. At the end of the fourth financial quarter, NCSoft revenues from the PC game decreased .
ArenaNet management has confirmed that it will pay severance payments in two months to all those affected by the reduction.