The game development company Digital Illusions is planning a move of its Gothenburg office and will concentrate all operations in Sweden to Stockholm. The move, which will take place during fall 2004, is the result of a need to gather knowledge and competence in one place. All seventy-three employees at the Gothenburg office will be offered employment in Stockholm.
The game development business is growing rapidly, and competition is increasing. Game development today is very similar to the development of large-scale Hollywood productions, often demanding seventy to one hundred people.
The global trend in game development is ever increasing size and complexity of the development projects, says Patrick Söderlund, CEO of Digital Illusions. In order to defend our position as one of the worlds leading game developers, we must be able to shift resources between projects swiftly.
By gathering all employees in one place flexibility is increased, thereby securing high quality in the production. It will also benefit further growth of Digital Illusions.
All employees at the Gothenburg office is offered a similar job in Stockholm. We understand that not all employees will have the possibility to accept this offer. But we hope that as many as possible will be able to move to Stockholm, says Patrick Söderlund.
The move will result in a cost of approximately SEK 5 to 7 million in 2004, estimated to be equally divided between the third and fourth quarter. As of 2005 and onwards, the move is expected to generate yearly cost reductions of approx SEK 15 million.
Digital Illusions game release schedule is not expected to be impacted by the move. Negotiations with the local union in Gothenburg have been initiated.