Source and leaked memo: EA plans to cut ~400 jobs, or ~3% of its total staff, and shut down BioWare; EA went private in August following a $55B leveraged buyout

EA halts development on the next Mass Effect game, impacting its storied RPG franchise.

Electronic Arts (EA) is shutting down its legendary BioWare studio and discontinuing development on the next Mass Effect game. This decision, along with layoffs affecting approximately 400 employees (about 3% of its workforce), follows EA's acquisition and transition to a private company in August for $55 billion. While BioWare's closure is a significant event, EA also announced other strategic shifts. Respawn and DICE will collaborate on a future project, likely a new Star Wars: Battlefront game, and EA is continuing development on Marvel's Iron Man and a new Star Wars Jedi title. The company is also working on a new American football game, "Project Gridiron," and reviving the Fight Night series. For The Sims, development on "Project Lotus" is paused to focus on "Project Evergreen," and the live-service game Skate will see studio changes to implement a clear roadmap. These changes aim to concentrate EA's resources on fewer, larger projects with clear growth potential.

The closure of BioWare signifies a major consolidation in the AAA development space, prioritizing established franchises and new IPs over studios with a rich, but perhaps less commercially successful, history. This move by EA, post-leveraged buyout, suggests a stronger focus on profitability and potentially a more risk-averse approach to game development, leaning towards guaranteed hits and live-service models that offer consistent revenue streams. The industry will be watching to see if this strategy leads to increased success or a dilution of creative output from EA's remaining studios.

This restructuring indicates a broader industry trend where large publishers are streamlining operations and consolidating talent to maximize returns following significant financial transactions. The emphasis on fewer, larger projects and collaborative efforts between studios like Respawn and DICE points to a desire for efficiency and leveraging existing IP and technology. It also signals a potential shift in how player engagement is measured, with a renewed focus on core franchises and new ventures that promise substantial, long-term growth potential, possibly at the expense of experimental or niche titles.