Electronic Arts has confirmed the closure of its BioWare studio and the cancellation of its upcoming Mass Effect game. While this decision carries significant emotional weight for employees and fans, industry analysts suggest it was an unsurprising, albeit harsh, business maneuver.
According to video game analyst Joost Van Dreunen, the drastic cuts were necessary for EA to manage the substantial debt incurred from its leveraged acquisition by Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity. The company faces annual interest payments of approximately $1.8 billion, a figure that surpasses its $1.5 billion annual EBITDA. Van Dreunen stated that the shutdown of BioWare was "entirely predictable and precisely what a leveraged buyout looks like once the deal closes." He added that a team of 50 working on a game years from release is an easy target for cost-cutting, regardless of the studio's legacy.
Piers Harding-Rolls of Ampere Analysis echoed this sentiment, acknowledging the emotional impact of closing a studio with a 30-year legacy known for popular RPGs. However, he pointed to recent commercial disappointments such as Dragon Age: The Veilguard, Mass Effect: Andromeda, and Anthem as factors that likely contributed to EA management's decision. Harding-Rolls suggested that discussions about BioWare's future may have been underway even before the acquisition was finalized, driven by the evolving landscape of high-end gaming and the imperative to reduce costs.
Amidst the news, Canadian politician Avi Lewis has called for government intervention to support BioWare workers in a potential buyback. Lewis described the situation as a common outcome of private equity practices, where businesses are acquired, run down, and dismantled for short-term profit. He advocated for providing federal support to enable developers to acquire and operate the studio themselves, emphasizing their proven ability to create beloved games.
The new Mass Effect game, first revealed in 2020, had remained in early development until its cancellation. During its development period, BioWare released Mass Effect Legendary Edition in 2021 and Dragon Age: The Veilguard in 2024. Despite the cancellation of the game, the Mass Effect TV series for Amazon's Prime Video is still proceeding with its development.