More Iniquities of the Video Games Industry
People often say that one of the reasons they play video games is to escape from the harsh realities of life. It’s a perfectly understandable aspiration; seeking to find a brief respite from the rigours, injustices and trauma of the real world in a potentially more tranquil environment. Yet it is ironic that the very industry that provides these virtual havens is steeped in all the failings and iniquities that stem from big business. Adding to the general shittiness of day to day life that so many wish to avoid. Which presents many gamers with an ethical dilemma, as they may well be supporting a company that indulges in morally abhorrent business practises. This isn’t the first time I’ve written about the iniquities of the video game industry and it certainly won’t be the last. Here are just some further examples of the sort of shenanigans that regularly occur among “Triple A” publishers.
An investment group representing some Activision Blizzard shareholders recently filed with the United States Securities and Exchange Commission an enquiry as to how CEO Bobby Kotick “finds multiple ways to unnecessarily enrich” himself. CtW Investment Group has stated in its mission statement that it functions to hold “directors accountable for irresponsible and unethical corporate behavior and excessive executive pay”. The group handles several union-sponsored pension funds that own “substantial” shares in Activision Blizzard. They’re concerned due to “multiple, overlapping award provisions” in Kotick’s employment agreement with Activision Blizzard, the CEO is allowed multiple bites at the apple. Kotick has received over $20 million in stock options every year for the last four years in addition to his base salary, as well as a bonus that is more than the total pay of his fellow CEOs in the games industry. The cumulative total of Kotick’s stock awards alone in the last four years is $96.5 million, which doesn’t include his salary.
All of this has occurred over a period of time when Activision Blizzard employees are facing ongoing job insecurity, following layoffs of 800 employees in 2019. Staff typically earn less than 1/3 of 1% of the CEO’s earnings, with some employees, such as Junior Developers, making less than $40,000 a year while living in high-cost areas such as southern California. Activision defended Kotick’s bonuses in a statement to GameSpot, citing increases in the company’s “market capitalization” and share price performance during his tenure as the reason for these financial rewards. “He has delivered exceptional value for Activision Blizzard’s stockholders”, according to their PR department. But for many gamers, this is yet another example of the immorality of corporate culture, especially in light of the current economic situation where many workers are currently furloughed and more than likely facing unemployment in the not too distant future. All while their employers make record profits.
And here’s another “fun” example of life in the video games industry. According to a report on Bloomberg, publisher Take-Two is alleged to have withdrawn Kerbal Space Program 2 development from studio Star Theory and then subsequently poached most of its staff, eventually leading to the company’s collapse and closure. Star Theory’s development staff apparently received an unsolicited LinkedIn message last December, in which a Take-Two revealed it was creating a new studio to complete the game Star Theory had been developing. Take-Two was seeking to hire all of Star Theory’s staff in order to “ease transition”. “This was an incredibly difficult decision for us to make, but it became necessary when we felt business circumstances might compromise the development, execution and integrity of the game”, Take-Two executive Michael Cook is alleged to have said. “To that end, we encourage you to apply for a position with us”.
Star Theory founders Bob Berry and Jonathan appear to have been in discussions with Take-Two about selling their company but were dissatisfied with the terms. However, pleas to staff to stay at the company and secure a new project failed, as more than half of the development team eventually joined Take-Two’s new studio Intercept Games according to Bloomberg. Whether their terms and condition of employment are comparable, remains to be seen. Such business practises are often seen as standard procedure within the video games industry but for those working at the “coalface” this is just corporate asset stripping and playing with the livelihood of staff. Again as gamers, do we wish to be associated with such dubious activities? I am reminded of a quote by Scottish comedian Frankie Boyle. “If you get offended by any jokes, by the way, feel free to Tweet your outrage on a mobile phone made by a ten year old in China”.
