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Tough times in the games industry

By Chris Bennett, Tudor Carsten, Michael R. Coburn, Sarah Dale-Harris, Pablo Guzman, Danielle (Dani) Lemon, Chris Metcalfe and David Spratley

Utah video game developer Sensory Sweep probably won't win an ??oeemployer of the year' award this year, at least not if its former employees have any say in the matter. Nearly 200 of the former employees have sued the developer for more than $2 million in unpaid wages, claiming they've been owed the money for more than 100 days.

The Department of Labor has gotten involved too, apparently investigating the studio since 2008, and recently requesting an injunction recently to prevent the developer from shipping certain games until employees are paid. The developer is in talks with the Department of Labor to try and solve the disputes.

Sensory Sweep is not the only games company hit hard by tough financial times. Electronic Arts recently announced that it would be closing its downtown Vancouver Black Box Studio and eight other studios, laying off hundreds of employees and relocating others.

It's difficult to show up at a games industry event these days and not bump into someone who's been affected by the lay-offs. For some, it's been a great opportunity, but for many others it's been a real challenge.

Coverage on Sensory Sweep here (Gamasutra)

Coverage on EA here (Vancouver Sun)

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Full post as published by Video Game Law Blog on January 26, 2009 (boomark / email).