EA shuts down BioWare and lays off 400 staff after privatization

Electronic Arts has confirmed the permanent closure of BioWare, the Canadian studio founded in 1995 and responsible for iconic franchises like Mass Effect and Dragon Age. The decision, communicated on October 21, 2026, via an internal letter signed by COO David Tinson and Studio President Cam Weber, implies the immediate cancellation of the next Mass Effect title, which was in an early stage of creation.

The labor impact is significant: the restructuring plans the dismissal of approximately 400 employees, representing around 3% of the company's global workforce. Of these, about 50 belonged directly to the BioWare team in Edmonton, Canada, whose facilities will be closed. The studio issued a statement on social media thanking players and recalling its legacy of over three decades in the Western RPG genre.

This decision comes just two months after EA became a private company following a $55 billion leveraged buyout. The operation, led by the Saudi Public Investment Fund (PIF), Silver Lake, and Affinity Partners, left the company with approximately $18 billion in debt. This change in financial structure has imposed immediate pressure for profitability and the reduction of operational costs.

Before the privatization, EA's management had communicated to investors its intention to save up to $700 million in costs. A fundamental part of this plan involved reducing spending on research and development (R&D). In this context, studios focused on large-scale titles with long development times and uncertain commercial returns, such as BioWare, were in the crosshairs of strategic cuts.

In addition to the closure of BioWare, the restructuring has affected other projects in development. The Sims title known as Project Lotus has been discarded to prioritize Project Evergreen, which will continue its development with more time to reach its full vision. On the other hand, the studio Full Circle, responsible for the Skate reboot, will see its staff reduced to focus on a more sustainable and focused roadmap.

The company has made it clear where it will concentrate its future resources. EA will maintain its bet on high-performing, lower-risk franchises, such as EA Sports games, the shooter Apex Legends, and action-adventure projects, which include the upcoming Star Wars Jedi and the new Marvel's Iron Man video game.

A key point of the announcement is the collaboration between the Respawn and DICE studios to work on a new joint project. Although EA has not officially confirmed the title, multiple industry sources indicate that it is a new entry in Star Wars: Battlefront. This alliance seeks to leverage the technology and recent success of Battlefield 6 to strengthen the company's shooter portfolio.

In the sports segment, EA Sports has announced two new projects in development that will be revealed in the coming months. Among them stands out Project Gridiron, an open-world experience centered on American football, and the return of Fight Night after 15 years of absence, demonstrating that investment in established licenses remains the company's main priority.

The closure of BioWare marks a change in the production logic of major studios: high-rotation projects prevail over ambitious long-term narrative works. This trend, accelerated by the entry of private capital in the sector, reduces the diversity of auteur titles in the catalog of major publishers and increases the focus on safe franchises and already consolidated licenses.

The reaction from the developer and player community has been one of surprise and concern. The dismissal of 400 people and the closure of a historic studio raise questions about the future of creativity in the AAA sector. Analysts point out that this restructuring could be the first move in a broader integration, given that PIF also owns Savvy Games Group, which could lead to a future merger of digital assets.