If you haven’t been paying attention lately, the world is going to Hell.  Prices are rising, salaries are falling, stocks have plummeted, and unemployment rates are off the charts.  One could even say we’re in the middle of a Financiapocalypse. Luckily for developers, economists have always labeled video games as a recession-proof industry.

Turns out, they were wrong.

Seems like everyday we’re hearing news of another video game studio laying off a portion of their workforce or even closing their doors altogether. Here’s just a few of the studios that have felt the wrath of the economy:

• LucasArts (75-100 game developers)
• Midway (Austin-based studio closed and Chicago studio on its last legs)
• Ensemble Studios (Gone for good after Halo Wars is completed)
• Electronic Arts (1,000 employees, nine studio and publishing locations gone)
• THQ (Paradigm, Helixe, Locomotive, Sandblast Games, Mass Media and Juice Games have all been axed)
• Brash Entertainment (rumored to be gone for good)
• Sony (8,000 employees let go, no detail of how many from the Playstation division)
• Free Radical (Gone for good)
• Aspyr (Knocking on death’s door)
• Factor 5 (Gone for good)

It’s getting real ugly out there folks and the bad thing is it looks like this is just the beginning so expect to see even more studios join that list as this recession continues. That is why studios closing up shop due to the flailing economy is #40 on our Top 100 Gaming Moments of 2008.

My sincere condolences to anyone who has been affected by these closings.

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