01:36 PM: Mike Sugarbaker says...
AEG announces layoffs

Apparently there is a limit to how many high-production-value collectible games a smallish company can launch and keep running at one time. AEG's front page is a note from John Zinser - we'll try and update the link when it moves, but the text is included below - saying that the company will be generally healthy afterwards, and no product impacts are spoken of here, so maybe this is just a good, if sad, business move in an industry where good moves are more rare than they should be. And buy some City of Heroes when it comes out, it's good. Okay.

The below is text from the Alderac.com website.

October 18th, 2005

Dear Friends,

This has been a very sad day for AEG. Changes in our industry, especially a major decline in the number of hobby gaming retailers over the past several months, combined with increasing costs for paper and printing, have forced me to implement major changes at AEG. In response to these changes in the market, today I implemented a series of cost saving measures which included substantially downsizing our workforce.

I am making these changes today because AEG is a strong and healthy company and delaying these actions any further would undermine that strength, and that is a risk I will not take. AEG is in the process of being retooled as a tighter, refocused company – one that will be able to continue to deliver excellent service and a quality gaming experience.

To everyone affected by today’s events, I extend my most heartfelt sympathies. Our thoughts and best wishes go with those who are leaving. I wish them the best of luck in all their future endeavors.

Sincerely,

John Zinser
CEO, Alderac Entertainment Group
jzinser@alderac.com