Bigpoint has abandoned development in the United States, according to a news piece by Gamasutra released today. The bad news comes alongside even worse: 120 employees have been laid off from the free to play publisher, over a third if whom are from the San Francisco studio. The layoffs are due to the cost of labor in San Francisco, as well as competing with other studios in the area for skilled work.
Founder and CEO Henrik Hubertz has stepped down from his role, citing unrelated reasons. Speaking to Gamasutra, Hubertz gave his own insight into Bigpoint.
The games that we have developed in the last two years haven’t been that successful, and the San Francisco area and Bay Area is quite a competitive market,
The other 80 layoffs came from Bigpoint’s office in Hamburg, mostly in administration. None of Bigpoint’s current projects have been affected by these layoffs.