Funcom, makers of such games as Anarchy Online, Dreamfall and Age of Conan has recently been in Norwegian media not because staff cuts, but because of alleged staff exploitation (articles in Norwegian here, here, here and here). The articles mentions pending investigations by the Norwegian Labour Inspection Authority.
The main problems seem to be expected unpaid overtime, continuous crunch time and leadership unresponsive to critique. The parallels to the problems at EA Games seem striking, and there there the employees even went so far as to sue for overtime pay. Stories about other problems similar to the problems at Funcom have been circulating on the Internet a few years now.
Of course, I do not know how it is to work at either company, and media often makes things seem worse than they are. However, the common denominator for these companies are that they attract young up-and-coming software developers, thrilled by the chance to work on something they have a passion for - they would even have done it for free! This, combined with the fact that managers see them putting in more effort than they are asked to do, is perhaps what makes it so easy to either implicitly or explicitly expect more from the employees than what you can demand.
I’m sure if the executives at either company are asked, they will not approve of employees being treated like this - however, how people are treated is ultimately their responsibility, and placing the blame on managers and middle managers is wrong.
If you are a middle-manager, be very careful - your actions and statements can and will be interpreted in ways you might not intend them to be. Trust me, I’ve been there myself…