American video game company Electronic Arts announced sweeping structural decisions including the closure of the long-standing game studio BioWare and the layoff of approximately 400 employees, representing a reduction of roughly three percent of the company's total workforce. This shift comes after the company transitioned to private ownership and assumed $20 billion in debt.
Closure of BioWare and cancellation of prominent projects
BioWare, acquired by EA in 2007 and famous for developing prominent franchises such as Mass Effect and Dragon Age, experienced financial and critical setbacks in recent years after games Anthem and Dragon Age: The Veilguard failed to meet sales expectations. As a result, the company decided to close the studio entirely, including its headquarters in Edmonton, Alberta, Canada, and cancel the upcoming Mass Effect project that was in early stages of development.
Restructuring of other studios
The changes were not limited to BioWare, as other studios owned by the company were also affected:
- Full Circle studio: Downsizing the development team of the skateboarding game Skate to become a smaller and more focused team despite the game's success in early access.
- Maxis studio: Suspending the development of a project named Project Lotus to redirect resources toward another initiative known as Project Evergreen.
- Future projects: Respawn and DICE studios continue working on new projects including shooter games, alongside a focus on fewer large-scale projects in the action-adventure genre.
Why does this news matter?
This decision reflects major radical shifts occurring in the video game industry, especially with the growing financial pressures on major publishers following massive acquisitions. The closure of BioWare marks the end of an era for a studio that shaped the landscape of role-playing games for decades, while the layoffs and restructuring point toward a trend among companies focusing on guaranteed-return projects and reducing production risks.