Layoff reports reopen Activision-Scratch fiasco

Activision could be facing new allegations of misconduct for the purchase of Los Angeles-based developer 7 Studios, with new reports indicating that the publisher has now axed half the studio’s workforce.

Anonymous sources, said to be close to the matter, have revealed to Kotaku that as many as 30 jobs at 7 Studios have been made redundant.

7 Studios was the initial developer of Scratch: The Ultimate DJ, before the group was acquired by Activision back in April.

The buyout quickly sparked lawsuit proceedings, with Activision accused of buying the team solely to disrupt the development of Scratch, a game in direct competition with Activision’s own DJ Hero.

Activision rubbished the allegations, claiming back in April that it purchased 7 Studios to “bolster its development capabilities”, and “provided the fledgling developer with much needed financing during these difficult economic times”.

The 30 alleged layoffs are believed to be the equivalent to half of 7 Studio’s entire workforce.

“Since the completion of its acquisition by Activision, 7 Studios has realigned its business to focus its development resources on the music genre,” said Activision in a prepared statement.

“As a part of this realignment, the studio is reducing its workforce to better reflect Activision’s upcoming slate of music-based games."