Realtime Worlds collapse a savage blow
Dundee's economy has been dealt a savage blow after computer games company Realtime Worlds was placed into administration with the loss of an estimated 170 jobs.
- By Graham Huband
- Published in the Courier : 18.08.10
- Published online : 18.08.10 @ 09.07am
Staff were told their fate at a meeting on Tuesday afternoon after the company's senior management bowed to overwhelming financial pressure and called in administrators.
The mass redundancies follow an announcement late last week that 60 staff dedicated to the company's new Project MyWorld game were being paid off.
According to one worker, the latest pay offs are in addition to last week's total, and staff will not be paid for their last month's work.
Realtime's demise is a massive blow as the company has been held up as shining example of the direction in which post-industrial Dundee needed to go in order to rebuild its shattered economy.
The company had hoped last month's launch of its ambitious online game All Points Bulletin (APB) would give it the perfect platform to take on the dominant World of Warcraft online game, which generates billions of dollars of revenues annually.
However, the PC-only title received a lukewarm reception and the business model it was built around — gamers having to pay a subscription fee to keep playing rather than buying the game outright — has been criticised in some quarters.
The first signs of trouble came within days of APB hitting the shelves with the announcement that redundancies were being made in both Dundee and Colorado, where the firm has its head office and online operations base.
The company said at the time that the job losses were as a result of an internal review of operations following the end of the development phase of APB.
Acute problems
It said it would continue recruiting, but within weeks it became clear Realtime Worlds' problems were more acute and last week it confirmed 60 staff were leaving the business.
The body blow came yesterday afternoon when employees were called to a meeting where they were addressed by administrator Sacha Georgiou and senior management.
Afterwards, a statement was issued explaining Realtime had gone into administration in the face of lacklustre demand for its latest online "cops and crooks" game, APB: All Points Bulletin.
Ken Pattullo and Paul Dounis, of Begbies Traynor, have been appointed joint administrators.
"We are currently involved in a consultative process with the 200 staff employed in Dundee," said Mr Dounis, who confirmed the administrators will employ some of the 42 staff in the US parent to assist in selling the business.
He added, "Our intention is to continue trading the company while we attempt to find a going concern buyer."
He said it was hoped any future buyer would continue to develop APB.
Employee meeting
One employee — who asked not to be named — said the redundancies were a big blow both to staff and the wider economy of Dundee.
He said, "We got an email at about 2.55pm telling everyone we were having a company meeting.
"We all attended at 3pm and the CEO (chief executive) Gary Dale and Dave Jones were there with the administrators and we were told the company had entered administration as of 2.17pm, and basically the company was not sustainable due to low sales of APB.
"The company is downsizing a huge amount, and out of the 210 or so staff around 170 are going to be made redundant, which will leave about 40 to 45 people going forward.
"The plan is to utilise the these people plus 12 in the US office...to maximise value within the company and hopefully sell it on.
"Everyone was expecting this and it all comes down to APB.
"Some people are trying to lay the blame on the (games industry) tax breaks being cancelled, but that would not have made any difference as they were not due to come in until April."
10.11am - 18.08.2010 Larry Page - Los Angeles, USA Report This
"Some people are trying to lay the blame on the (games industry) tax breaks being cancelled, but that would not have made any difference as they were not due to come in until April."<br /> No comment from Jim Govern?
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