The game was being developed by the studio that made 2023’s Star Wars Jed.
Electronic Arts (EA) has announced that it is canceling an upcoming Star Wars game and has disclosed plans to lay off approximately 5% of its global workforce, amounting to around 670 employees. The canceled game was in early development and was intended to be a first-person shooter set in the Star Wars universe. EA framed these moves as part of a broader “streamlining” initiative to ” deliver deeper, more connected experiences for fans.”
This decision comes amid a broader trend of job cuts in the gaming industry, with EA announcing layoffs at UK developer Codemasters in December 2023. The company’s CEO, Andrew Wilson, explained the rationale behind these measures in a letter to staff, citing a focus on developing fewer new titles and sunsetting games that are not expected to succeed in the changing industry landscape.
In a subsequent email to employees, EA entertainment boss Laura Miele clarified that this streamlining effort includes canceling an upcoming Star Wars title developed by Respawn Entertainment, a subsidiary of EA. Respawn Entertainment is known for its work on Star Wars Jedi: Fallen Order, which received positive reviews.
The gaming industry has experienced a series of job cuts recently, with Microsoft revealing plans to lay off 1,900 people in its gaming division in January and Sony announcing the elimination of 900 staff and the closure of its London Studio just two days before EA’s announcement.
The decision to cancel the Star Wars game has drawn attention to the challenges faced by the gaming industry in retaining top talent, especially as the industry undergoes significant changes. Rich Barham, a former executive at gaming studio Blizzard, highlighted the difficulty of obtaining funding for new game studios in the current environment, emphasizing the risk of losing skilled professionals to other industries.
Competition intensifies as the gaming industry matures, leading companies to prioritize efficiency, profitability, and competitive capabilities. Karol Severin, senior analyst at Midia Research, noted that while the gaming industry is entering a more mature phase, it remains a robust and growing market, projected to reach $223 billion and expand by an additional $78 billion by 2030.
Overall, the gaming industry is navigating a challenging landscape marked by increased competition, strategic shifts, and workforce adjustments, with companies like EA making decisions to adapt to the evolving market dynamics.
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