Electronic Arts (EA) has decided to cancel a forthcoming Star Wars game and will terminate 5% of its global workforce, affecting around 670 employees.
The game, which was in its early stages of development, was planned to be a first-person shooter set in the Star Wars universe.
EA stated that this “streamlining” process aims to “deliver deeper, more connected experiences for fans.”
This move reflects a broader trend of job cuts within the gaming industry.
EA had previously announced in December 2023 its intention to lay off employees at UK-based developer Codemasters, known for titles such as F1 23 and EA Sports WRC.
In a letter to employees, CEO Andrew Wilson mentioned that affected staff members have begun receiving notifications, with the layoffs expected to be finalized by summer.
He also explained the decision to reduce the number of new game titles, stating, “We are also sunsetting games and moving away from development of future licensed IP that we do not believe will be successful in our changing industry.”
This shift in focus, according to Wilson, allows the company to prioritize creativity, innovation, and opportunities in owned IP, sports, and online communities.
In a subsequent email to employees, EA entertainment chief Laura Miele disclosed the cancellation of the upcoming Star Wars title being developed by subsidiary Respawn Entertainment.
This studio was responsible for Star Wars Jedi: Survivor, which received generally positive reviews.
Miele stated, “As we’ve looked at Respawn’s portfolio over the last few months, what’s clear is the games our players are most excited about are Jedi and Respawn’s rich library of owned brands.”
The gaming industry has witnessed similar rounds of layoffs, with Microsoft announcing plans in January to lay off 1,900 employees in its gaming division, including some from recently acquired Activision-Blizzard.
Additionally, Sony recently revealed intentions to cut 900 staff and close its renowned London Studio.
Sarah Stevens, head of gaming HR firm e-volveHR, emphasized the importance of humanity and kindness in supporting those affected by these layoffs.
Karol Severin, senior analyst at Midia Research, noted that these recent cuts reflect the intensifying competition within the gaming industry.
He emphasized that while the industry is evolving into a more mature phase focused on efficiency, profitability, and competitiveness, it remains a substantial and growing market, projected to reach $223 billion by 2030.
Source-BBC
