EA Games Cancels Star Wars Amidst Layoffs: Industry Fallout

Electronic Arts (EA Games) has decided to halt the development of a future Star Wars game, laying off roughly 670 workers worldwide, or 5% of its total staff.

The EA was supposed to be a first-person shooter set in the Star Wars world, but it was still in the early stages of production.

According to the corporation, these steps are a part of their efforts to “streamline” operations and give customers more connected and engaging experiences.

This choice continues the current pattern of employment losses in the casino sector.

According to Rich Barham, a former executive at Blizzard, “video games run a significant risk of losing top talent outside of the industry and being impacted for years.” Obtaining funding to start a new game studio is incredibly difficult, and thousands of people are laid off every month.

EA Games revealed in December 2023 that it would terminate employees at Codemasters, a UK-based firm best known for racing video game news, including F1 23 and EA Sports WRC.

The company’s CEO, Andrew Wilson, informed staff members via letter that notifying impacted workers had begun and that the layoffs should be completed by summer.

Wilson also explained the choice to reduce the amount of new games being developed.

“We are also discontinuing certain games and shifting focus away from the development of licenced IP that we believe may not thrive in our evolving industry,” he said.

Laura Miele, EA’s head of entertainment, explained in a follow-up email to the staff that this strategy change means that the upcoming Star Wars news project, which subsidiary Respawn Entertainment is developing, will no longer proceed. Star Wars Jedi: Survivor was created by this firm, and according to review aggregator Metacritic, the game garnered “generally favourable” reviews.

After evaluating Respawn’s portfolio over the past few months, we’ve seen that the games our users are most excited about are those in the Jedi survivor Metacritic and Respawn’s vast array of exclusive brands,” she stated.

“Deciding to discontinue a project is always challenging, and this choice does not diminish the team’s skill, determination, or dedication to the game.”

This marks the most recent wave of layoffs affecting the gaming sector, following Microsoft’s January announcement of intentions to cut 1,900 positions within its gaming division, including some at the recently acquired Activision-Blizzard.

Two days after Live 5 news, Sony revealed plans to terminate 900 employees and shutter its renowned London Studio.

“The reverberations of widespread layoffs deeply resonate within the gaming community, especially for the skilled professionals impacted,” remarked Sarah Stevens, CEO of e-volveHR, a human resources firm specializing in gaming.

Above all, demonstrating humanity and kindness is crucial for individuals navigating these challenging circumstances.”

Karol Severin, a senior analyst at Midia Research, commented that the recent layoffs underscored the increasing competitiveness within the gaming industry and electronic arts careers.

“This doesn’t imply that the industry is facing dire straits; rather, it indicates a transition into a new, more mature phase where efficiency, profitability, and competitive prowess are paramount,” Severin explained.

He noted, “The gaming industry remains a substantial $223 billion market and is projected to expand by approximately another $78 billion by 2030.”

“To put this in perspective, that’s greater than the current size of the global recorded music industry.