Electronic Arts (EA) has recently decided to cancel an upcoming Star Wars game and lay off approximately 670 employees globally, which accounts for 5% of its workforce. The game, which was in the early stages of development, was supposed to be a first-person shooter set in the beloved Star Wars universe.
The company has described this move as a “streamlining” effort aimed at delivering deeper, more connected experiences for fans. Unfortunately, this news reflects the ongoing trend of job cuts within the gaming industry.
EA had previously revealed its plans to lay off employees at Codemasters, a renowned UK developer known for creating racing games like F1 23 and EA Sports WRC. These layoffs are expected to be finalized by summer, as the company has already started contacting affected employees.
In a letter addressed to the staff, EA CEO Andrew Wilson explained that the decision to reduce the number of new titles being developed is part of a strategy to focus on their owned intellectual properties (IP), sports games, and massive online communities. Wilson stated, “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.”
Additionally, in an email to the staff, EA entertainment boss Laura Miele revealed that this strategic shift would result in the cancellation of the upcoming Star Wars game being developed by subsidiary Respawn Entertainment. Miele emphasized that the decision was not a reflection of the team’s talent, tenacity, or passion for the game but rather a response to player excitement surrounding their existing game, Star Wars Jedi: Survivor.
Unfortunately, these job cuts are not isolated incidents in the gaming industry. In January, Microsoft announced plans to lay off 1,900 employees in its gaming division, including some from recently-acquired Activision-Blizzard. Furthermore, just two days ago, Sony revealed plans to axe 900 staff members and close its renowned London Studio.
The impact of these mass layoffs is significant, particularly for the talented individuals affected. Sarah Stevens, head of gaming HR firm e-volveHR, emphasizes the importance of humanity and kindness during these challenging times.
Senior analyst Karol Severin from Midia Research suggests that these recent layoffs reflect the increasing competition within the gaming industry. According to Severin, the industry is entering a new, more mature chapter where efficiency, profitability, and competitive capabilities are paramount. Despite these changes, the gaming industry remains strong with a projected growth of approximately $78 billion by 2030, making it a $223 billion industry in total.
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