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DICE Shuts Down Trauma Studios' NY Office

by Rainier on June 7, 2005 @ 9:05 a.m. PDT

Digital Illusions have decided to discontinue the New York office, Trauma Studios, previoisly known for the Desert Combat mod. All of the twelve employees are offered employment at the head office in Stockholm, for which they'd have to move from US to icecold Sweden.

The conditions have changed and the future plans of the company differ considerably from when Trauma Studios was acquired in September of 2004. The acquisition of Trauma Studios was nevertheless particularly motivated. The deal contained value in form of rights to trademarks as well as a new game concept, says Thomas Skoglund, the chairman of the board of Digital Illusions.

- We will from now on focus on the growth of the Swedish operations, says Patrick Söderlund, the CEO of Digital Illusions.

Digital Illusions are planning a growth in Sweden already in 2005. The company will continue the use of outsourcing of elementary graphic services to cheaper countries as for example Ukraine.

The Canadian office will continue to function as a satellite studio. The operations are based on working with gaming concepts, mainly expansion packs, based on technology developed in Stockholm.

Digital Illusions will not pay the supplement payment of 200,000 USD as agreed upon at the time of the acquisition of Trauma Studios. The total payment is thereby 300,000 USD. Following the adjustment for the default of payment of the additional supplement payment, the SEK 1.3m remainder of the value of goodwill is written down during the second quarter of 2005. Other costs of liquidation are diminutive.

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