[Updates: Statement from Transmission Games CEO Mike Fegan confirms 28 job losses / Internal emails reveal financial troubles]
Independent Australian developer Transmission Games has reportedly cut over 20 staff members.
The Melbourne-based studio behind Codemasters’ UK chart topping Ashes Cricket 2009 and Ubisoft’s Heroes Over Europe notified affected employees today, reports Gamasutra.
One of the longest running Australian studios, Transmission Games was founded in 1996 and previously went under the name IR Gurus. The company employed over 135 internal staff as of September 2008, according to GameSpot.
We contacted Transmission Games for further details and CEO Mike Fegan confirmed in a statement that the company had made the difficult decision to let 28 members of staff go.
"The decision to lay off staff is not easy for any company, and we delayed taking this course of action for as long as we possibly could. Transmission Games has grown rapidly over the past couple of years. The recent releases of Ashes Cricket 2009 and Heroes Over Europe, both of which have been incredibly well received in the market, are a testament to the talents of the Transmission teams. We are genuinely proud of both games.
"We, like many other developers, have not been immune to the global financial situation. Securing new projects is difficult; the publisher's decision making process is, quite understandably, more considered and thus longer. Even getting a rejection from a publisher is difficult. We currently have two unannounced game in development, but our inability to secure a third project in time has forced us to reduce our operating costs to ensure the long term health and viability of our company.
"On Tuesday, September 30, we were forced to let 28 people go. These were some of the most talented members of the Australian development community and it was incredibly difficult to see them leave. We naturally wish them the very best for the future and can't thank them enough for their contributions to the company over the years.
"Transmission Games remains focused on delivering high-quality titles and are continuing to work with publishers to secure additional projects. We're optimistic the next news stories from Transmission Games will be exceptionally positive."
A number of emails forwarded to us also appear to provide further insight into the financial troubles at the studio, which is struggling to secure a number of contracts.
The mails, which were supposedly sent to all members of staff by Fegan, said that the company had expected to sign a deal on a project with LucasArts to coincide with the upcoming movie Red Tails, but that after several delays it “is currently on hold due to a legal IP problem with the film and no indication on when this issue will be fixed".
Our source said that the company is currently working on two projects. One is a demo for an arcade style helicopter game called Rotorhead. It has been pitched to about 10-15 publishers so far but no one is picking it up, they said. The other is flight sim Janes F-22 for Evolved Games.
Fegan also said that a deal for a follow-up to Ashes Cricket 2009 is “now close to finalisation” with publisher Codemasters.
Salaries have reportedly been delayed every month for around six months, and Fegan’s emails confirm at the least that the company is now micro-managing its finances.
“As you are probably already aware we are now micro managing our cash flow on a daily / weekly basis I have made the decision to immediately revert to fortnightly pay cycles effective this week,” Fegan said recently. “… The reality is we need to continue to reduce our overheads to return to profitability by the end of this financial year ending June 2010.”