EA has announced a workforce reduction of 5% by the end of March, along with a shift away from developing externally licensed games in the future.
CEO Andrew Wilson stated, “We are also sunsetting games and moving away from the development of future licensed IP that we do not believe will be successful in our changing industry. This greater focus allows us to drive creativity, accelerate innovation, and double down on our biggest opportunities — including our owned IP, sports, and massive online communities — to deliver the entertainment players want today and tomorrow,” on EA’s website.
In terms of licensed games, EA is currently working on titles based on Black Panther, Iron Man, and Star Wars. Although the Marvel games remain unaffected, other changes include the cancellation of a Star Wars FPS game at Respawn Entertainment, and the closure of mobile games based on various franchises.
EA’s strategy shift towards owned IP games will not impact its sports game lineup. Wilson emphasizes the importance of delivering bigger games based on IP under their control. The company aims to provide comprehensive experiences for fans, encompassing gameplay, content creation, and community-building.
According to GamesIndustry.biz, the restructuring plan will affect about 670 game developers and cost the company between $125 and $165 million. This move aligns with other recent industry layoffs, including Sony’s announcement of over 900 job cuts and the closure of several game development studios.
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