“Unprofitable” teams are being “cut”.
Gameloft has closed seven of its development studios since the beginning of the year, all of which were deemed "unprofitable" and generated more expenses than revenue.
The closures are part of what Gameloft CEO Michel Guillemot called “an ambitious cost-cutting program.”
In the first half of 2015, the French mobile games publisher recorded a loss of more than 16 million euros, much more than the loss of 0,1 million in the same period last year. And that's despite revenue rising 15 percent to reach 127 million euros.
“This loss in the first half of the year was due to the seasonality of our business, as well as the disappointing level of revenue achieved by three games developed by Gameloft specifically for the Japanese and Chinese markets,” Guillemot said in a statement. The Asia-Pacific region accounted for 28% of Gameloft's revenues, ahead of North America at 27%.
Gameloft didn't specify which studios had been closed, but that's not exactly a surprise. The company offered little clarity on rumors of the closing of its New York office in July, and rumors that 80 jobs in its Tokyo office were also met with silence.
Gameloft has three potential blockbusters lined up for release later this year: Disney Magic Kingdom, Order & Chaos 2: Redemption, and Trivial Pursuit & Friends.