In the shooter Borderlands 3, there is currently significant trouble behind the scenes. At the center are bonuses that are not being paid out, despite the shooter being a major success. Insiders expect that employees will leave the studio.
What happened? According to the website Kotaku, which reportedly spoke with 6 employees from Gearbox, there is currently trouble regarding bonus payments for Borderlands 3.
The developers had apparently counted on large, sometimes six-figure amounts that were promised by management. However, Gearbox’s CEO Randy Pitchford reportedly informed employees on March 31, 2020, that the bonuses would be significantly lower than planned.
The cause is said to be the studio’s overall financial situation, which is currently not looking good:
- One reason is flops like Aliens: Colonial Marines (2013) and Battleborn (2016), games that did not achieve major success.
- But Borderlands 3 also cost more money overall than expected.
- Additionally, the studio has opened a branch in Quebec, Canada.
The outbreak of the coronavirus is reportedly, according to Pitchford, not said to have influenced the decision.
Why is this a problem? According to Kotaku, employees at Gearbox are paid, on average, lower than at other developers. Therefore, they count firmly on the bonus payments.
There is said to be a distribution of 60/40 in the company, through which employees of the respective title receive a total of 40% of the revenues quarterly as bonus payments. 60% again flows back into the company and to its owner Randy Pitchford.
According to the company’s statement, more than 100 million dollars have already been distributed in bonus payments. In 2012 for Borderlands 2, the payments were reportedly so large that many employees subsequently bought houses.
The developers likely hoped for something similar with Borderlands 3.
Borderlands 3 was a success, but an expensive one
Where exactly are the problems with Borderlands 3? During the development of Borderlands 3, there was a switch from the Unreal Engine 3 to the newer version 4, which is said to have cost money and time.
Additionally, Gearbox is reportedly only set to get paid by the publisher 2K once all expenses for the game are covered. This also includes costs for the new DLCs, which according to Kotaku are expected to raise the budget to around 140 million dollars.
Borderlands 3 will set a new record in franchise sales, as Strauss Zelnick, the CEO of Take-Two, stated during the earnings call in February. However, it appears that the path there was significantly more expensive than it was for Borderlands 2.
What does the CEO say? Randy Pitchford reportedly told employees at Gearbox that they are welcome to leave the studio if they are not satisfied with the bonus system.
However, he hopes to receive more money from 2K in the future to distribute to employees.
Kotaku additionally highlights another detail regarding the CEO. It is said that Pitchford negotiated a bonus of 12 million dollars for himself with the publisher Take-Two in connection with the start of the development of Borderlands 3. However, this money reportedly came from the company’s 60%, as it turned out.
Although this money therefore has no direct impact on the bonuses, employees are reportedly still dissatisfied with Pitchford for this reason.
Are employees now leaving Gearbox? According to Kotaku, some employees are said to be very upset by the current situation. The contacts for the website reportedly stated that they expect the departure of some employees in the near future.
Some are said to have made financial plans based on the expected bonuses. For them, the absence could now also mean a bottleneck.
