Yet one more online game big is reducing again its workers.
Electronic Arts has introduced plans to put off 5% of its workforce, roughly 670 workers, because the business faces slowing gross sales and ongoing consolidation. The restructuring, which EA mentioned is supposed to emphasise “strategic priorities and growth initiatives,” follows a sequence of layoffs throughout the gaming panorama.
Yr so far, the online game business has slashed almost 8,000 jobs, together with EA and cuts earlier this week at Sony Interactive Entertainment. A slowdown in curiosity in video games as the present crop of consoles reaches the halfway level of their life cycle and fast-rising budgets for title improvement are probably the most usually cited causes.
EA echoed this in its announcement, saying it plans to lean into its hit franchises and transfer away from licensing mental property from different leisure firms (excluding some Star Wars video games).
“We are also sunsetting games and moving away from development of future licensed IP (intellectual property) that we do not believe will be successful in our changing industry,” wrote EA CEO Andrew Wilson mentioned in a memo to workers. “We are streamlining our company operations to deliver deeper, more connected experiences for fans everywhere that build community, shape culture, and grow fandom.”
EA additionally plans to scale back its workplace house footprint.
Some analysts who cowl EA mentioned the transfer is smart.
“The changes that were announced on Wednesday mesh with the reality of an increasingly AAA-centric marketplace, and they provide us with additional comfort around EA’s ability to deliver its profit expansion ambitions for FY:25,” wrote Nick McKay of Wedbush.
Others, although, cautioned that creating new franchises ais important to progress.
“While its annual sports franchises may seem mature in core markets, EA Sports is well positioned for the convergence of linear and interactive media,” wrote Brian Fitzgerald of Wells Fargo. “Still, new IP and mobile, each wrapped in live services, must be the growth driver. One to two new at-scale franchises would solidify the bull case, while EA’s lucrative sports franchises limit downside risk.”
