Microsoft recently announced significant layoffs and restructuring, heavily impacting its Xbox division. This resulted in the cancellation of several games and projects, leading to the dismissal of thousands of employees. The industry widely criticized this action, expressing considerable sadness, including Shaun Noguchi, the general manager of EA Japan.
Writing personally on X, Noguchi shared his disappointment regarding the latest round of job cuts and project cancellations. He commented (initially in Japanese, translated by IGN) that the focus of Western companies on immediate profits often sacrifices long-term stability and success, ultimately harming the game industry. He stated, “The game industry thrives because of every single creator and staff member who works hard to develop games,” adding, “Being in the same industry, this decision causes me deep pain.”
Noguchi later repeated (in English) his view that canceling long-developing projects, some worked on for years, was highly regrettable. While companies often cancel projects to minimize losses and avoid the “sunk cost” trap, Noguchi particularly worried about the affected employees who now lack a tangible outcome for their efforts. He argued, “Personally, if a game has been in development for 7 to 10 years, cancellation seems like the worst choice. That`s a decade of work, possibly a quarter of someone`s entire career, completely lost.” He believes, “Even if the final game isn`t exactly what was initially planned, I think it should still be released. Releasing something benefits both the development team and the players more than nothing at all.”
Noguchi`s perspective likely stems from Japan`s distinct corporate culture and legal framework, which prioritize business continuity and provide robust worker protections. Compared to their Western counterparts, Japanese developers appear to have experienced significantly fewer workforce reductions recently, and it`s quite common for employees in Japan to remain with a single company throughout their careers.
Notably, EA, Noguchi`s employer and a US-based company, has also been actively involved in layoffs and game cancellations in recent years. For example, in late May, EA canceled its planned Black Panther game and laid off employees, following an earlier report in April about canceling a Titanfall game and cutting 300 jobs.