Splinterlands: The Market & Economic Side Of 45%
So splinterlands laid off 45% of its staff, and the first thing that came to my mind was how this looked similar to the myriads of retrenchments that are currently happening in the cooperate world. Of course, this isn't the same thing. But when it comes to money, irrespective of where it's built or generated from, Profit and loss are occurrences that are always synonymous in a particular context.
I know that some people might already begin to think that Splinterlands might have money in FTX, well it's normal for them to think so and this is because the trust issue in the crypto world out there is being tanked by the likes of DO KWON and SBF. But, it's different in hive and everything is built here.
There's this extra layer of safety that comes with building on hive and this probably makes aggy and the team quite better. Generally, we can see the oblivion that's happening in the world of finance these days and it's a sad thing to see a huge company as splinterlands following the retrenchments route, but if we begin to see in-house analyses, we might just begin to understand that running a #p2e game in a bear market might be very expensive.
But there again, it makes you wonder, "shouldn't they have seen it coming and planned for it?* But then again, running a million dollars in cost per month is not child's play, whether it's the bull or the bear market. However, I don't exactly know the number of staff that makes up the 100%, and laying off 45% might seem epic, but I'm hearing it's close to 145.
The Maths Can Be Overwhelming
Maybe laying off 45% and keeping 100 of them might probably not seem huge
....but since we're dealing with percentages, I think close to 60 people must have been laid off. Now I don't know if these people's duties were dispensable or something that they could have easily transferred to other team members who could also handle these duties, but I'm certain there must have been someone tasked with the decision of choosing who would go and who needs to stay based on what they offered.
I think this is a tough thing to do and I don't really know if 145 staff are too much, because I cannot originally understand the essence of their functionalities. However, if this was just downsizing because some roles were surplus to requirement then Splinterlands Inc will eventually surge ahead after this. Although we cannot completely say they (splinterland Inc) have been spotless in their decision-making.
I particularly feel that the development phase of the game at the grassroots has stalled, the building at the lower level has reduced and it's more stationary with the level of sales we're completely seeing. Since I think riftwatchers came in too early when the Chaos legion packs haven't even sold out. I think I realize that some of these revenues from the sales are being channeled into cost. Although having lesser cost to run might mean not needing too many funds thereby channeling energy and resources into development and building rather sales upon sales.
But this is highly hypothetical.
For one I think 80 or 90% of the CL packs should be burned, then the next card edition should be halted till maybe 2024, (I'm indifferent towards riftwatchers, but I still feel it's expensive) then I think there should be more focus on adoption, graduating the ordinary user to higher levels, reducing cost of participation while offering bigger incentives should new users see the game as a long-term investment.
Running The Cost
This might currently not seem profitable for splinterland INC, but it's going to be in the long run. I'm trying to see beyond the gloom of this 45% layoff and the positive things they could achieve from this. It's even better we didn't see the DAO being used to further fund payments because this might grossly affect SPS. It's a bump in the road, I love splinterlands (even if my investment is tiny) I believe everyone does too, it's hard not to.
At this stage, I believe aggy and the team need to look to the future and begin to build something formidable again. No one likes the effect of bear markets, but generally, it's beyond the market and into stranger things. What I can see is that Splinterlands has done well considering. They've got dedicated die-hard users and it's only the beginning.
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