Electronic Arts has shut down BioWare and canceled its new Mass Effect sequel, a move reportedly driven by the opportunity to develop a third Star Wars Battlefront game. The decision came as EA faced significant financial pressure following a $55 billion buyout by Saudi Arabia’s Public Investment Fund.
According to reporting from Bloomberg, EA executives saw the potential Mass Effect game as a competitor to a new Star Wars Battlefront title, which they viewed as the less financially risky project. This led them to prioritize the Star Wars game and close BioWare, despite EA having acquired the studio partly due to its success with the Star Wars: Knights of the Old Republic series.
An EA spokesperson stated the decision was made after "months of planning, review, and analysis, including careful consideration of evolving business conditions, industry dynamics, and our long-term priorities."
Contributing Factors to BioWare's Closure
While the Star Wars project was the catalyst, other factors contributed to BioWare's demise. The studio's recent title, Dragon Age: Veilguard, significantly underperformed sales expectations. Previous releases, such as Mass Effect: Andromeda in 2017 and the live-service title Anthem in 2019, were also poorly received. This led to a gradual reduction in staff, with only 50 employees remaining at the time of the studio’s closure.
EA has a history of acquiring studios only to shut them down later, including Westwood, Origin, Pandemic, Black Box Games, and Visceral. In a separate development, former BioWare employees reported that EA pressured the studio to remove a flag supporting LGBTQ+ rights from the in-development Mass Effect Universe, potentially due to EA’s new Saudi backing.
Industry-Wide Layoffs Continue
The video game industry has seen widespread layoffs in 2026. As game development budgets continue to escalate, publishers are increasingly focusing on established franchises. Xbox recently announced a "major reset" involving approximately 3,200 job cuts and the closure of several studios, including Ninja Theory and Compulsion Games. These industry trends suggest a future with fewer original titles and a greater emphasis on established "name brands."