Abandon single-player, move development to Saudi Arabia, "reduce labour"? Experts on what EA's huge buyout debt could really mean
Electronic Arts has been acquired through a leveraged buyout, co-owned by private equity firms and Saudi Arabia's Public Investment Fund, with approximately $20 billion borrowed from Morgan Stanley. This significant debt places pressure on EA to generate substantial interest payments, leading experts to predict major shifts including potential layoffs and a focus on profitable live service games over niche single-player titles. The acquisition's structure and Saudi Arabia's strategic investment goals suggest a potential reorientation of EA's development and business practices.
- Entities
- Company: Electronic Arts
- Game: Mass Effect 2
- Person: Kieran Maguire
- Person: George E. Osborn
- Company: Saudi Arabia
- Game: EA Sports FC 24
- Company: Morgan Stanley
- Topic: Leveraged Buyout
- Topic: Video Game Industry
- Person: Adrian Fernandez-Perez
- Topic: Game Development
- Topic: Live Service Games
- Game: EA Sports FC 26
- Company: Public Investment Fund
This article was reported and published by eurogamer.net. feed.gg links to it as part of a story cluster — full text, images and rights remain with the publisher.