Shams Jorjani, CEO of Helldivers 2 developer Arrowhead Game Studios, has publicly addressed the recent $55 billion acquisition of Electronic Arts by a consortium involving Saudi Arabia, Silver Lake, and the investment firm Affinity Partners.
Following the completion of the deal, Jorjani stated that the move represents a significant consolidation in the industry. He expressed concern that the new ownership structure might pressure the publisher to focus exclusively on established sequels and large-scale franchises, rather than maintaining a diverse portfolio of projects.
Industry and Financial Impact
Jorjani noted that EA's historical success has been built on a range of titles, contrasting major blockbusters like Battlefield and Mass Effect with smaller or more experimental projects like Unravel and Split Fiction. He warned that if the company shifts its strategy toward only the largest cash cows, it would be a "real waste" of the publisher's catalog.
The acquisition has also brought immediate financial changes for the publisher:
- Debt Load: EA has taken on $18 billion in debt as part of the private takeover.
- Cost Reduction: The publisher has informed debt investors of plans to cut $700 million in annual costs.
- Organizational Efficiency: Approximately $170 million of those cuts are categorized as "organizational efficiencies," which typically signals impending staff reductions.
These developments arrive as EA faces ongoing scrutiny regarding its focus on major franchises, such as EA FC, Madden, and titles set in the Star Wars universe. Recent actions, including layoffs at BioWare following the release of Dragon Age: The Veilguard, have fueled industry concerns about the future of smaller, non-franchise projects under the new ownership.