The Pulse: Dec. 18, 2024

A gaming executive says the recent layoffs at Inflexion Games and the full closure of Humanoid Origin have been influenced by investment in gaming companies being scaled back and the ongoing absence of a tax credit program in Alberta.

"It's well known that during the course of the pandemic, interest in gaming skyrocketed, both as a business opportunity and fuelled by people consuming games at home during lockdown," Scott Nye, the chief operating officer of Inflexion, told Taproot. "That led to a significant amount of investment. Those times of expansion, probably, were too aggressive. Now (the industry is) settling back into a more sustainable version of itself."

In October, Inflexion laid off at least 66 employees. The studio was founded by Aaryn Flynn, a former general manager for BioWare, and was originally owned by Improbable and later sold to Tencent.

Weeks later, Humanoid Origin announced it would close and let go at least 53 people. Like Flynn, Humanoid Origin founder Casey Hudson made his name at BioWare with work on blockbuster titles like Mass Effect.

Both studios offered statements on LinkedIn.Inflexion said "the industry is undergoing a period of significant transition." Meanwhile, Humanoid Origin said there are " broader challenges in the industry" that caused the studio to close.

Taproot contacted Humanoid Origin but the company declined to comment for this story.

Nye's assessment of industry woes is echoed by reports that suggest that the global gaming industry has laid off more than 23,000 people over the last two years.

Dorian Rowe, the interim executive director of the Edmonton Screen Industries Office, also sees the trend. The organization is a city-funded entity that supports gaming, film, TV, and broader interactive digital media (often called IDM).

Rowe said the cash contraction in games is in step with the strains on other screen-based industries, but isn't catastrophic.

"I wouldn't characterize it as a burst bubble. It's maybe a bubble that's shrinking a little bit, or maybe coming back to a 2018 or a 2019 level, versus the peak of, let's say, 2021," Rowe told Taproot. "In media in general, but I would say in (the) video game industry for sure, if (you) think that you have a crystal ball on the immediate future of the video game industry or any media industry — good luck … Predicting hits, predicting things that aren't hits, that's always super, super challenging."

• Edmonton Police Commission chair John McDougall has resigned effective immediately following controversy over his plan to continue serving from Portugal. McDougall, who has been on the commission for seven years, said that his overseas residency could distract from the commission's work, which includes hiring a new police chief next year. His decision came after Public Safety Minister Mike Ellis expressed his expectation that McDougall would step down after his relocation became permanent.
• The City of Edmonton has extended its extreme weather response until Dec. 21 because of the severe cold. Vulnerable residents are urged to seek shelter to avoid frostbite, and anyone who sees someone sheltering outside is asked to call 211 for the Crisis Diversion Team. Special shuttle services and expanded shelter options, including additional overnight spaces at Al Rashid Mosque, are available to assist those in need.
• Edmonton Transit Service has implemented several accessibility improvements for individuals who are blind or have low vision based on feedback from the CNIB's Get On Board campaign. The improvements include changes to emergency push strip colours, blue curb painting, and clearer bus signage. More changes are planned for 2025, including expanding blue curb painting across the city and re-tiling benches in downtown LRT stations.
• The remains of Erum Kamal, who disappeared into the North Saskatchewan River in 2001, have been identified through DNA sequencing. Her remains were discovered in September 2023 near a golf course in northeast Edmonton, and genetic genealogy was used to confirm her identity. The identification is part of Project Match, a collaborative effort by the Edmonton Police Service, the Alberta RCMP, and the Office of the Chief Medical Examiner.
• Whyte Avenue in Edmonton is experiencing a mix of vibrancy and vacancy, with some long-standing businesses enduring while others remain closed, including the historic Princess Theatre. Despite challenges such as high vacancy rates and changing nightlife patterns, the area continues to attract new businesses and has retained its status as a popular shopping and dining district. The Old Strathcona Business Association is working to enhance the area's appeal and encourage investment. "A lot of what we try to do is increase footfall and support making the space feel vibrant and busy," said executive director Cherie Klassen.
• Fifteen new community peace officers were celebrated at a ceremony on Dec. 17, with five joining Edmonton's Transit Safety Team and others supporting various Alberta organizations. The officers received training in Indigenous and mental health awareness, de-escalation, and working with vulnerable populations, the City of Edmonton said in a release.
• The Cross Cancer Institute in Edmonton has opened a new $1.4-million staff wellness centre, funded by an anonymous donor through the We Cross Cancer campaign by the Alberta Cancer Foundation. The wellness centre, designed in collaboration with architecture and engineering firm WalterFedy, includes a kitchen, a yoga and meditation area, and circadian lighting.
• The Canada Mortgage and Housing Corporation reported a 4.1% increase in purpose-built rental apartments in 2024, the largest in more than 30 years, which raised the national vacancy rate from 1.5% in 2023 to 2.2% in 2024. Despite the increase in supply, rental market conditions remain tight, with Edmonton experiencing slight rent growth acceleration due to higher rent increases for new tenants and newly completed units.
• A report by Climate Central found that Edmonton is experiencing an increase in winter days with temperatures above 0°C due to climate change. The trend is attributed to the burning of fossil fuels and has been observed in the northern hemisphere, with Vancouver and Calgary also seeing significant increases in above-freezing winter days.
• In an interview with Postmedia, Transportation Minister Devin Dreeshen defended the province's reduction in photo radar sites across Alberta by limiting their use to playgrounds, school zones, and construction sites. Dreeshen said the change is meant to improve traffic safety by focusing on areas needing safety enhancements rather than generating revenue, despite concerns from Edmonton city council and police about potential safety impacts.
• Edmonton Oilers head coach Kris Knoblauch confirmed that both Connor McDavid and Darnell Nurse are okay after a collision during practice. Meanwhile, forward Viktor Arvidsson might return to play in the team's game against Boston on Dec. 19 after recovering from an injury, while Zach Hyman, who took a puck to the face in a recent game, is expected to play.
• The Edmonton Elks traded quarterback McLeod Bethel-Thompson to the Montreal Alouettes in exchange for veteran quarterback Cody Fajardo. Fajardo is expected to bring valuable experience to the Elks, complementing quarterback Tre Ford, who recently signed a three-year extension with the team.

Here are some events happening today in the Edmonton area.

• CIAFV Winter Gathering starting at 1pm at South East Edmonton Seniors Association
• Artistic Horizons starting at 1pm at Strathcona Community Centre and County Hall
• ASTech Awards Information Session starting at 1:30pm online
• Edmonton Tech Wednesday starting at 5:30pm at GRETA Bar YEG
• Icehouse's Annual Customer Christmas Party starting at 7pm at Rocky Mountain Ice House
• The Climate Limbo starting at 7pm at CKUA

And here are some upcoming events to keep in mind:

• Jan. 1: Calgary Hitmen vs. Edmonton Oil Kings at Rogers Place
• Jan. 6: Silent Book Club at St. Albert Public Library
• Jan. 9: Kings of Curry Cooking Class at Blue Quill Community Hall

Visit the beta version of the Taproot Edmonton Calendar for many more events in the Edmonton region.