Pathfinder Online Layoffs; Ryan Dancey Leaves Company

Paizo CEO Lisa Stevens has announced that Goblinworks has had to lay off nearly the entire staff of Pathfinder Online. "We knew we needed a certain amount of money to finish to build the game, and we came really damn close, but we just couldn’t find the last bit of funding that we needed. […] Last Friday, we had to lay off most of the staff. […] I couldn’t pay them anymore. We gave them lots of warning, so they all knew this was coming." Not only that, apparently Ryan Dancey left the company two weeks ago! That leaves three employees (who are continuing work on the game), who are being moved to the Paizo offices; the Goblinworks offices are being closed. The company is seeking $1-$2 million from other investors to finish the game.

Paizo CEO Lisa Stevens has announced that Goblinworks has had to lay off nearly the entire staff of Pathfinder Online. "We knew we needed a certain amount of money to finish to build the game, and we came really damn close, but we just couldn’t find the last bit of funding that we needed. […] Last Friday, we had to lay off most of the staff. […] I couldn’t pay them anymore. We gave them lots of warning, so they all knew this was coming." Not only that, apparently Ryan Dancey left the company two weeks ago! That leaves three employees (who are continuing work on the game), who are being moved to the Paizo offices; the Goblinworks offices are being closed. The company is seeking $1-$2 million from other investors to finish the game.

Pathfinder Online was being produced by Goblinworks, a new company spearheaded by Ryan Dancey and Lisa Stevens, amongst others. It has had two successful Kickstarters already - one for a million dollars, and the other for a $300K technology demo.


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Here's the full announcement from Lisa Stevens:

To the Pathfinder Online Community

From the beginning of the three year journey to create Pathfinder Online, the one constant has been the support of our community and for this I thank you. We have had ups and downs including heated debates on design, implementation and overall gameplay. We have literally battled together (or against each other) and I know you enjoy playing the game as much as I do. I also know that the community comes together during tough times, and it is probably no surprise that we are currently in a tough spot right now. There are a number of things that have occurred in the past two weeks that you need to be brought up to date on.

As we have been on this journey to create Pathfinder Online with you for over three years now, we have striven to be as transparent as possible with you. We just shared the following message with the community during our weekly Keepside Chat. In full transparency, here is a quick run down of the state of our game:

EE10.2 is on ZOG for final testing and should roll out to live on Thursday or Friday morning.

EE11 is targeted for the end of September

Ryan Dancey has had to resign from the company for personal reasons (Lisa Stevens will be acting CEO)

Finances are tight at Goblinworks, which has resulted in the layoff of the majority of Goblinworks staff

CTO Mark Kalmes, Art Director Mike Hines, and Designer Bob Settles continue to push the game forward (your monthly subscriptions are what keep these three employed and the server up)

Goblinworks is in talks with multiple game publishers to take the game on and bring it to Open Enrollment

I know that is a lot to take in, so I will share what details we can below:

Game status (EE10.2 and EE11)

We are in final testing before pushing EE10.2 to the live server with its fully revamped and improved new player experience, buy orders for the auction house as well as auction sales histories, settlement chat, and the new crystal ogres monthly event, as well as turning the previous event (The Wrath of Nhur Athemon and its Shadow counterpart) into an ongoing escalation, and making a bunch of bug fixes and improvements. The team has been working hard on this and on EE11 for most of July and August. EE11 is done in design, almost entirely done in art, and just needs a bit more programming to get it to the point where we can test. It will take settlement activities to the next level by allowing you to customize and build your settlements the way you want to. Building a settlement will be a large group task, with lots of raw materials to gather and refine before buildings can be erected. We will also have the dark elves monthly event ready, providing more PVE content for those who are focused on that aspect of the game. The core team has the goal of shipping EE11 by the end of September, and we'll keep you updated on our progress.

Ryan Dancey

Ryan Dancey needed to resign from the company for personal reasons. We were very sad that he needed to leave us, but supported his decision because it is in the best interests of Ryan’s life outside Goblinworks. In Ryan’s absence, the board of directors has appointed me Acting CEO.

Finances

We have always known that we would need a certain amount of money to make Pathfinder Online a reality. Some delays in getting the game to market coupled with some anticipated funding falling through have left us about 75% short of the money we need to finish the game and bring it to Open Enrollment. We knew that we could cut our burn rate (the rate at which expenses burn your cash reserves) by having folks participate in Early Enrollment and that was always the plan, though we never thought that the Early Enrollment subscribers could carry the company to Open Enrollment. We knew we needed that full investment amount to do that. We had numerous times this year where the full funding was dangling in front of us only to be snatched away at the last moment. Very frustrating, but we moved forward and kept looking for somebody to come through with the money we needed to see the game through.

Due to the commitment that you have made to the game, your current subscriptions are able to keep the core team employed and the servers live. We will continue to move the game forward with that team and keep the servers live as long as the continued financial support from the community is there. But that means we need you, the Pathfinder Online Community, to continue to support us with your monthly subscription fees. They are very literally what is keeping the servers paid for, and keeping our core team employed, working on EE11, and talking with various potential partners about purchasing the game so they can finish it. If you wish to see the game through to its finish, we need you to support it financially for the next few months, and if you know people that want to support it, encourage them to subscribe now. (During this period, we will offer only month-to-month subscriptions.)

On August 28, we had to lay off the majority of the Goblinworks staff. Continuing to push the game forward are CTO Mark Kalmes, Art Director Mike Hines, and Designer Bob Settles. We have been keeping the staff abreast of our efforts to find funding for Pathfinder Online and that we would likely have to lay them off on the 28th. We felt it was super important to give our employees warning so they could plan their lives accordingly. Their efforts to line up new jobs led to some of the rumors about layoffs. So why didn’t we announce this earlier? Because there was and still remains a chance for Pathfinder Online to get its funding and continue forward, so it wasn’t a foregone conclusion that we would have to lay the staff off until Friday, the 28th.

Future

For the past few weeks, we have been shopping Pathfinder Online to a number of other game publishers, looking for a good fit to take the game on and fund it over the finish line. There have been quite a few companies coming out of the woodwork to discuss this with us and we are in ongoing talks with a number of them about the possibilities. More companies enter the fray every day. These kinds of things take some time, though we are motivated to see them through as quickly as we can. At any moment, one of these publishers could agree to buy the game and we could quickly ramp up to full tilt again. Due to confidentiality, we can’t provide information on these negotiations. Rest assured that you will be the first people we tell when there is news we can share.

This isn’t a super rosy picture, but we aren’t dead yet! The Goblinworks team and the Pathfinder Online community have been underdogs for pretty much the entire project’s history. But we have persevered and survived. Sometimes it is darkest right before the dawn. When I was at White Wolf, we were close to having our electricity and phones shut off in the month before Vampire: The Masquerade released and became a huge hit. At Wizards of the Coast, we had to lay off the entire staff for 9 months before Magic: The Gathering launched and became one of the most successful games in history. You have my word that I will work relentlessly to find the right partner to take Pathfinder Online through to the finish line. The team has brought the ball down the field to the red zone, and now we just need somebody to punch it over the goal line.

I will be hosting another Keepside Chat on Wednesday, September 8th at its normal time of 5pm PST. You can join the chat live by going to:

Golarion.mumble.com

Port 3093

The ability for us to make Pathfinder Online has always been entirely dependent upon you, the Pathfinder Online Community and the support you have given us. I would like to thank the Pathfinder Online community for your fierce dedication, support, feedback, and drive to see this game made well. The only reason to make Pathfinder Online is you, our customer. I hope you will stay with us over the next few months as we search for that proper partner to finish the game. It is your support, literally, that will allow this to happen. Without you, there is no Pathfinder Online.

You have my eternal gratitude,

Lisa Stevens
Acting CEO
Goblinworks Inc.






Original post:
Goblinworks has laid off all but three of the Pathfinder Online staff.

 

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smiteworks

Explorer
I don't mean to imply that you don't need people who are good with story... just that it becomes easier to produce story elements when the world is already fully developed.
 

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Cergorach

The Laughing One
Lisa and Ryan wanted too much, too fast with a Pathfinder MMO. If they did a CRPG things would have been more manageable and they would generate some experience and trust with investors and backers. The Shadowrun Returns kickstarters are a good example on how to do something like that, but even the Weissmann had way more experience in the computer game development branch then Ryan and Lisa. Lucky for them they did the PF MMO under a different entity then PF/Paizo, that insulates them from any legal responsibilities (unless they were criminally negligent in their duties, which I doubt).

It's a shame, but not totally unexpected, not then, not now.

I do hope for the backers that they keep working on it and that they'll get something resembling what was promised.
 

Starfox

Hero
Lucky for them they did the PF MMO under a different entity then PF/Paizo, that insulates them from any legal responsibilities (unless they were criminally negligent in their duties, which I doubt).

They were pretty open with this; at least I immediately felt that was the reason Goblinworks wasa separate company. Standard practice. No surprises here. (Not claiming you said it was, just continuing the argument).
 

Dannager

First Post
This is one of the reasons that I NEVER back software projects on Kickstarter. They fail, more often than not.

This is exactly the reason I do back software projects on Kickstarter. Sure, maybe some fraction of those funded actually succeed. But my personal batting average is much better (I have backed six software projects on Kickstarter, and I am now 5 for 6; the Pathfinder MMO is the first to have failed, and I backed it with the understanding that it almost certainly would fail - I just wanted the exclusive autographed goodies). So it's actually pretty easy to back cautiously, and end up getting your money's worth on each of your investments.

But here's the real kicker: regardless of how many Kickstarter software projects fail, nearly 100% would not have existed if it weren't for the patronage model Kickstarter offers. By backing, I am helping to bring something into being that otherwise might not have existed. It's pretty cool to have someone pitch something that could exist, and then realize you can cause it to come into being. To paraphrase Holkins, I saw where a CRPG was not, and said, "No. This will not do."

Mind you, Kickstarter isn't something I see as a sensible choice for someone who doesn't really have disposable income. But there is no reason to take such a cynical approach to backing Kickstarter projects. If you have some risk control standards and do some really basic research on a proposed project, you can come really, really close to totally eliminating the risk behind your investment.
 
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Kinak

First Post
They were pretty open with this; at least I immediately felt that was the reason Goblinworks wasa separate company. Standard practice. No surprises here. (Not claiming you said it was, just continuing the argument).
Yeah, they mentioned this several times in relation to people being worried about what would happen to Pathfinder if PFO went under.

And, as you say, it's standard practice. It prevents damage from spreading and, even if things go well, helps keep the books a lot tidier.

Cheers!
Kinak
 

I was one of the backers for both and got the Thornekeep and emerald spire books so was really happy to back it................and maybe that was part of the problem. I seem to recall Ryan saying that the purpose of that Kickstarter was to show potential investors that there was large amount of intrest in the idea of PFO but if I had been an investor part of me would have been wondering how much of that intrest was for the actual game and how much was for the other rewards (Ie are people paying into it for PFO as was intended or are they seeing it more as the kickstart the Paizo supermodule)
 

delericho

Legend
My viewpoint is almost the exact opposite. Most of the studios we know today as big name studios or successful studios are that way because of how well they did with a licensed product.

Yep. And it's a sensible approach - use a license for your first game to guarantee it gets seen, do a good job, and then market your next game as "From the team that brought you..."

The problem, fundamentally, is that software is hard, and any new product is now being published into a world where top-quality software already exists. So it's not good enough to produce "a good first effort" - if you want to be taken seriously then you have to at least hold your own against the top dogs in the field.
 

Yanko128

First Post
I was one of the backers for both and got the Thornekeep and emerald spire books so was really happy to back it................and maybe that was part of the problem. I seem to recall Ryan saying that the purpose of that Kickstarter was to show potential investors that there was large amount of intrest in the idea of PFO but if I had been an investor part of me would have been wondering how much of that intrest was for the actual game and how much was for the other rewards (Ie are people paying into it for PFO as was intended or are they seeing it more as the kickstart the Paizo supermodule)

Exactly. Also 8700 backers does not show much interest in an MMO. For a traditional RPG, sure. Not for an MMO. And if they did not offer tabetop incentives a lot of people who were not interested in the game would not have pledged, and chances are the KS would have failed. Which would have shown that there was not enough interest in the game.
 

Uchawi

First Post
I have not joined a kickstarter to date. I prefer to see the end product, versus a purchase based on faith. I have not given up all hope that they may be able to pull through and produce the game. At that time, I may give it a fair shake. Graphics will not be the main seller, but content and the experience will be heavy factors in regards to enjoying a game that is no a carbon copy of what is currently on the market.
 

Nylanfs

Adventurer
I have backed all the Shadowrun games and haven't been disappointed. Chronicles could be better but I'm satisfied with the end result.
 

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