AGS NEWS – Electronic Arts (EA) has announced the cancellation of an upcoming Star Wars game and revealed plans to reduce its global workforce by 5%, affecting around 670 employees.

The game, which was in early development, was intended to be a first-person shooter set in the Star Wars universe.

EA stated that the decision is part of a “streamlining” effort aimed at providing fans with deeper and more connected gaming experiences.

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This move reflects a broader trend of job cuts sweeping through the gaming industry, with Rich Barham, a former executive at gaming studio Blizzard, highlighting the difficulty of securing funding and the risk of losing top talent.

The company previously announced layoffs at UK developer Codemasters in December 2023, known for racing games like F1 23 and EA Sports WRC.

In a letter to staff, EA CEO Andrew Wilson outlined plans to focus on fewer new titles and sunset projects that are deemed unlikely to succeed in the changing industry landscape.

Subsequently, EA entertainment boss Laura Miele informed staff via email that the upcoming Star Wars title being developed by subsidiary Respawn Entertainment would be cancelled.

This decision follows a strategic review of Respawn’s portfolio, prioritizing projects like Star Wars Jedi: Survivor, which received positive reviews.

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The announcement adds to a series of job cuts in the gaming sector, including Microsoft’s plan to lay off 1,900 people in its gaming division and Sony’s decision to axe 900 staff members and close its London Studio.

Analysts suggest these moves reflect the increasing competition in the gaming industry and a shift towards prioritizing efficiency, profitability, and competitive capabilities.