lbalbalba writes "Electronic Arts is shutting down its Westwood-based game developer Pandemic Studios just two years after acquiring it, putting nearly 200 people out of work. 'The struggling video game publisher informed employees Tuesday morning that it was closing the studio as part of a recently announced plan to eliminate 1,500 jobs, or 16% of its global workforce. Pandemic has about 220 employees, but an EA spokesman said that a core team, estimated by two people close to the studio to be about 25, will be integrated into the publisher's other Los Angeles studio, in Playa Vista.' An ex-developer for Pandemic attributed the studio's struggles to poor decisions from the management."

babboo65 writes "Dungeons and Dragons Online is enjoying a second life in terms of player count and buzz, all thanks to its new business strategy: giving the game away. Turbine is making their MMO as accessible as possible, and that includes making players who don't pay anything as happy as possible. Subscriptions are up 40 percent. Ars explores how free can be very profitable."

Kheldon writes with an article at MMO Gamer which explores how well real money transactions work in online games, using EVE Online as a test case. Quoting: "... My next problem came from trying to sell the [Game Time cards] through the 'Time Code Bazaar' on the forums. While I quickly found buyers, none of them actually went through with the deal. This is the inherent problem with developer sanctioned RMT. Unless true, unfettered, player-to-player transactions are allowed without developer 'regulation,' the market will inevitably be operating inefficiently. Consider gold-farmers for a moment. Setting aside the moral or legal aspects of the trade, and considering from a purely economic standpoint, gold-farmers are the RMT equivalent of large corporations. They operate on the concept of 'economies-of-scale,' which basically means that up to a certain point, the larger a company is, the cheaper they can produce that product. Of course, companies that can produce a product more cheaply can undercut the competition while maintaining the same profit margin; meaning they'll make more sales, giving them more overall profit, and supporting the corporate growth, which furthers the economy of scale. This is the market at its most pure."

Perhaps emboldened by the similar setback to Champions Online, Jumpgate Evolution developer NetDevil has announced that the space MMO will not be released in June, as was originally planned. NetDevil's president, Scott Brown, said, "One of the things we've always promised is that we would not release an unfinished product, nor would we subject players to a sub-par experience. ... Jumpgate Evolution is nearly feature complete, but since entering the Friends & Family phase of testing we've been able to bring new eyes onto the game and get solid, crucial feedback from actual players and fans. Based on these results, it is clear that the product needs more time to meet its objectives. As an example, we have received and read lots of feedback regarding the instanced and public PvP systems. The feedback has been vital in helping us polish and improve this core feature of the game." A new release date has not yet been selected.

BoyIHateMicrosoft! writes "A friend of mine sent me this link today about a group of MIT students who have created something called a WoWPod. It's like a playhouse for WoW players. It has everything from Refreshing Spring Water, to food (Like Crunchy Spider Surprise of course!) to a toilet and of course the appropriate gaming gear."