The Bay Area was the epicenter for a product revolution that not only changed the future of gaming but helped drive the region’s most recent tech boom. With social games like FarmVille, Bay Area companies began to widen the market outside the traditional audience, bringing games to the masses, off the consoles and on to Facebook and mobile. Some of the biggest names in the social/casual game sphere are locals. Zynga, EA, Playdom, Gree, Kabam, Crowdstar, and Playfirst all have studios here.
Social games are online games played on social networks like Facebook, which often use metrics, or data gathered from player behaviors, to devise techniques that keep people coming back. Over time the casual game market exploded, and though the lines between mobile, social and casual games tend toward nebulous, the mobile game market alone has grown to a several billion dollar a year industry. Gamasutra, a game industry news site, was already reporting the signs of a boom back in 2009.
But while the overall gaming market boomed, social games began to lag behind in innovation — and financial problems began to creep in. Then, already limping from the social game decline, the local industry felt another major shift this year when the next generation of consoles was announced. With the new Xbox One and PS4 slated to launch at the end of 2013, many companies began tightening belts now to save money to develop titles for the new platforms. EA, for example, laid off workers in preparation for the ‘console transition,’ as stated in a recent post to the company’s blog.
EA started the landslide of layoffs and studio closures back in March, but was soon followed by Disney’s closure of LucasArts’ game development arm. Zynga was up next, eliminating 18 percent of its total workforce, according to a recent post on the Tech news site Dice.
The result: thousands of recently laid-off engineers, designers, and artists flooding the local job market. Too many candidates and too few jobs equals fierce competition for the few positions left, with many people being forced into underemployment, doing work they are years over-qualified for, leaving the industry, or the Bay Area entirely.