Electronic Arts (EA) has unveiled a significant restructuring plan that will see the cancellation of Respawn Entertainment’s in-development Star Wars first-person shooter (FPS) and the reduction of its workforce by approximately 670 employees, or 5% of its total staff. This move is part of a broader strategy to refocus on owned brands and support existing games, amidst a shifting landscape towards open-world, community-driven, and live service games.
Strategic Shifts and Project Cancellations
EA Entertainment president Laura Miele, in a note to staff, detailed the company’s future business priorities, highlighting the difficult decision to shut down the early development Star Wars FPS action game. Miele emphasized that the decision reflects a strategic focus rather than a commentary on the development team’s talent or passion. Rumored to feature a Mandalorian protagonist, the fate of this Star Wars FPS, as well as EA’s Star Wars strategy game, now hangs in the balance as the company pivots towards large-scale, community-centric gaming experiences.
Reassignment and Focus on Key Franchises
The team previously dedicated to the Star Wars FPS will be largely reassigned to other major projects, including Apex Legends, Iron Man, Black Panther, and the confirmed third installment of the Star Wars: Jedi franchise. Despite the shift towards owned IP, EA remains committed to its partnership with Disney/Marvel, ensuring the continuation of the Star Wars: Jedi series.
Battlefield and Mobile Game Adjustments
Following the departure of Marcus Lehto, EA is also restructuring its Battlefield teams, sunsetting Ridgeline Games and integrating some developers into Ripple Effect. Criterion’s Danny Isaac and Darren White will now oversee single-player aspects of the Battlefield series. Additionally, EA announced the sunset of several mobile games, including F1 Mobile Racing, MLB Tap Sports, Kim Kardashian Hollywood, and The Lord of the Rings: Heroes of Middle-earth.
A Narrowed Focus
EA’s restructuring aims to concentrate its efforts on a select group of its most successful franchises, including EA Sports, Apex Legends, Star Wars: Jedi, Iron Man, Black Panther, Battlefield, Need for Speed, Dragon Age, Skate, and The Sims. A team remains in pre-production for the next Mass Effect installment, with Bioware’s current focus on Dragon Age.
The Human Impact of Restructuring
Laura Miele’s message to staff underscored the human impact of these changes, acknowledging the challenges and disruptions faced by employees. The layoffs are part of a troubling trend of mass layoffs within the gaming industry, with EA itself having reduced its workforce by 6% nearly a year prior. The company’s SEC filing revealed that it would incur costs between $125 million to $165 million related to the layoffs, including severance and office space reductions.
Conclusion
EA’s announcement marks a pivotal moment for the company as it navigates the evolving gaming landscape. By focusing on a handful of its biggest franchises and reorienting its business strategy, EA aims to adapt to the industry’s shift towards more immersive, community-driven gaming experiences. However, the cancellation of Respawn’s Star Wars FPS and the reduction of its workforce underscore the complexities and challenges of maintaining relevance and growth in a highly competitive market.