Electronic Arts (EA) has completed its transition to a private company, a move orchestrated by Saudi Arabia's Public Investment Fund (PIF) and the investment firm of Jared Kushner, Donald Trump's son-in-law. The deal loads the publisher with approximately $20 billion (£14.8 billion) in debt, raising immediate concerns about mass layoffs and a narrowed focus on its most profitable franchises.
Immediate cost-cutting plans
Just days after the buyout, EA executives announced plans to achieve £125 million in 'organisational efficiencies'—a euphemism that industry observers expect to translate into significant job cuts. This comes at a time when an estimated 50,000 developers have already lost their jobs since 2022, according to industry tracking. The layoffs are partly attributed to overstaffing during the Covid-19 pandemic, but the broader issue is the consolidation of the industry into a few giant corporations.
EA CEO Andrew Wilson issued a statement praising the 'extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies,' but critics note that such words ring hollow when followed by cost-cutting measures that typically target staff, not executive bonuses.
Saudi influence and creative concerns
The PIF, Saudi Arabia's sovereign wealth fund, has been aggressively investing in global entertainment, including sports (owning Newcastle United and hosting the 2034 World Cup) and gaming (holding stakes in Nintendo, Take-Two, and Embracer Group). The fund's involvement raises questions about creative freedom, especially for titles like The Sims, which has a strong LGBT+ following. The PIF's Misk Foundation previously acquired Japanese studio SNK, and later inserted Cristiano Ronaldo and DJ Salvatore Ganacci as playable characters in Fatal Fury: City Of The Wolves, angering fans.
While the PIF may not immediately impose changes, the debt burden alone will likely push EA to concentrate on its biggest earners—EA Sports FC and Madden NFL—and expand microtransactions. The publisher has already reduced its output, moving away from its former versatility.
Industry-wide trend
EA's situation mirrors a broader industry trend. Western publishers like Activision (now mostly Call of Duty) and Take-Two (focused on billion-dollar franchises) have narrowed their portfolios. The obsession with live-service games and chasing the next Fortnite reflects a short-term profit mindset, with little regard for audience loyalty or employee welfare.
As one analyst noted, 'A customer exists only to be fleeced of money as often and as deeply as possible.' For EA, this is less of a concern because football fans will buy the next EA Sports FC regardless, but other franchises may suffer.
Impact on gamers
For casual players of EA Sports FC, the change may be barely noticeable beyond increased microtransactions. But fans of The Sims or other smaller EA franchises could see reduced support or creative changes. The deal, unlike the attempted Warner Bros. sale to Paramount Skydance, faces no legal disputes, leaving the future of EA in the hands of a government with a controversial human rights record.
The video games industry, already under fire for widespread layoffs and exploitative practices, now faces a future where one of its biggest players is controlled by foreign interests with little accountability. As the article concludes, the industry's problems stem from 'short-sighted, morally bankrupt oligarchs' who prioritize personal wealth over employees and customers alike.
