Electronic Arts has outlined more details regarding its financial savings plan, first announced earlier this month, noting that although restructuring will cost around USD 55-65 million over the next few quarters, the company stands to save USD 120 million annually as a result.
Around 1000 people will leave EA, the majority by the end of March 2009, a move that will cost around USD 30-35 million, while nine studios will be consolidated or closed.
Among those to be shut will be the Black Box Studio in Vancouver, with that team moving to nearby Burnaby. Location-based costs are expected to reach USD 23-28 million, with other asset impairment charges totalling approximately USD 2 million.
"EA is implementing a plan to narrow its product portfolio to focus on hit games with higher margin opportunities," read a statement. "The company remains committed to taking creative risks, investing in new games, leading the industry in the growing mobile and online businesses, and delivering high-quality games to consumers."
EA's share price closed up on Friday by 3.76 per cent at USD 17.39.
Wedbush Securities analyst Michael Pachter believes the next Xbox console might be already dead due to Microsoft embracing Game Pass at $30.
You know the world is f’d up when Michael Pachter has given up cheerleading Xbox.
The crazy part is that this crazy fool was saying that Sony was doomed (or in his words 'going to be run over by Microsoft') because of GamePass after the Activision Deal. He was the one telling them to embrace GamePass and now that its killed them he is acting like he never said that.
You know the world is f'd up when investors listen to Michael Patchtcher after the advice "Sony is doomed if Microsoft buys Activision and put it out on gamepass"and now he's saying "I Think The New Xbox Console Is Already Dead, They've Blown It by Embracing Game Pass"
I feel bad for investors.
It’s true what they say “even a broken clock is wright twice a day”.
In this clock case is twice a game generation 🤣
Wouldn't it be the case of Pachter finally agreeing with parts of us rather than we agreeing with him?
I remember vividly that back in the day when GP was introduced and shaped further, many of us were saying that it's a great service on one hand. But were also already skeptical, too, as to how Microsoft would be able to keep the service running financially in the future.
Or/and how it would affect studios and game development in general.
As of March 2026, I think we have the answers some of us anticipated back then, when it was still Pachter who had forecasted «100 million subscribers».
A lot of this is just basic logic and common sense.
How much does it cost to develop a game? How much does it cost to market a game? How much does it cost pay devs/publishers to release on GamePass?
How much do users pay per month/year on GamePass? How many users does Microsoft need to be subscribed at once for them to truly be profitable to where GamePass pays for ITSELF(i.e not including stuff like in app purchases that they would get regardless of GamePass' existence).
You would need a large amount of subscribers or increase it's price to a point where it's no longer a "bargain" for it to be profitable.... if you're asking me. For some reason Pachter didn't see it that way nor did MS' users.
Likely the next Xbox will have a premium price tag so they have some profit margin on the low numbers they sell. We all know that the bulk of revenue will come from 3rd party sales on other devices and perhaps some from game pass.
Not to mention the fact that if it does have steam, nobody is going to buy games off the windows store.
If they dont have free online, this thing is dead to me.
And even Gamepass flopped. The end goal of Gamepass was to be hegemonic, to kill game purcahses with subscriptions. But that never happened. Game sales are still thriving, Gamepass' subscriber count has stalled, it's costly for MS and studios and its price is increasing.
The purchase of Activision allows them to hide Gamepass' failure. Not suprising that gamepass was removed from Nadella yearly bonus, they knew they would never hit the targets.
the tinfoil hat is on!
You think they spend 75 billion to hide that gp isnt doing well? XD
They totally didnt buy activision because they got some of the biggest and most profitable ips on the planet, but instead they bought it so you can't say online that gamepass failed!! that's totally the reasoning fr fr
He never said any of that..
Said that it ALLOWED them to, not that it was THE reason for the purchase...
I am not a Pachter fan , but I have to agree...who would have though. It used to be to sell cheaper hardware that is subsidised by First party game sales in the first few years until you can reach millions owning the console and by that time you can cheapen your hardware because the tech have been revised. With gamepass on everything and developers losing sales that option is now limited. With the onset of more options for games and developers going for Gass gambling FOMO style games and dlc consumers have become rightfully picky. Add that to growing hardware prices and escalating ram and pandering to society... it kills a brand. Most og gamers are gonna find you out and stay away. Put on the pressure of companies demanding higher revenue for sales, the poor developer has no other option to put a new coat of paint on a copy of another successful game. Innovation , what we are looking for doesn't happen a lot because the danger of failing could lead to budget cuts and them letting you go...so you play it safe and make a copy of a copy. Yes we get genres and types but 80% is the same game we have had for ages. So then because you are scared you let them put it on gamepass and you know you know at least what you get.
Nintendo announced Friday that several of its long-time partners, including DeNA, will sell off some ¥300 billion in company shares.
Digital intelligence and analytics firm Sensor Tower has released its State of Gaming 2026 report, revealing flat growth in mobile game revenue, double-digit growth for PC and console gaming, and another record year for PC, with more games sold on Steam than ever before.
...Peter Moore hasn't jumped ship yet.
EA, stop making NBA Live. Leave it to the 2K guys for starters.
i wonder what the other studios are
now if they close down the people that make madden we might get an real version of what football video game should be ..not that arcady crap there putting out each and every year
but if you go to any gamestop around the country there are an ton of madden 06-09 for the 360 sitting in there .that should be an sign to step there game up but they havent..me and my friends have went back to playin nfl 2k5 and all pro 2k8 to get that football we long for in our system