Major videogame companies are feeling the hurt in a weak consumer market for their products; Electronic Arts has reduced staff as the once mighty THQ is sold for parts.  The videogame business has been in free fall, with a 9% decline in the U.S. in 2012 (see "Videogames Drop in 2012").

EA posted a message on its Website in late April after leaks about layoffs began to appear.  The message said in part, “In recent weeks, EA has aligned all elements of its organizational structure behind priorities in new technologies and mobile.  This has led to some difficult decisions to reduce the workforce in some locations.” 

It seems clear that the layoffs were done with the knowledge that EA was about to acquire the Star Wars license (see "Disney Awards 'Star Wars' License"), indicating that even with the addition of a huge property, EA still expects its business to continue to shrink.   

THQ, once a major videogame company, filed Chapter 11 bankruptcy last December (see "THQ Files Bankruptcy") and is in the process of selling off its assets.  It sold several of its studios and some of its intellectual property in January, and has continued to sell assets and take bids.  Hearings on bids for the remaining assets will take place this month.