Bloomberg Report: Star Wars Deal, Not Just Debt, Killed BioWare

Key points

• EA chose 'Star Wars Battlefront 3' over 'Mass Effect Universe' as the safer financial bet.
• The decision was influenced by $18 billion in debt from a $55 billion leveraged buyout.
• BioWare co-founder Greg Zeschuk called the buyout the 'final nail in the coffin.'
• Studios DICE and Respawn are reportedly collaborating on the new Star Wars project.
• EA cited 'evolving business conditions' and 'long-term priorities' for the closure.

Background

This follows EA's October 21 announcement to shut down BioWare, resulting in approximately 50 job losses at the studio and part of 400 total layoffs. The closure canceled 'Mass Effect Universe' and sparked a fan campaign with over 267,000 petition signatures. Previous coverage noted that BioWare's recent titles, including 'Dragon Age: The Veilguard,' missed sales expectations, leading to internal restructuring.

How outlets are covering it

Bloomberg and Dark Horizons emphasize the financial calculus, stating EA chose 'Star Wars Battlefront 3' because it was perceived as a more predictable success than a new 'Mass Effect' game, especially given the $18 billion debt from the Saudi Arabia Public Investment Fund's acquisition. Windows Central highlights the irony that BioWare, which created 'Star Wars: Knights of the Old Republic,' was sacrificed for the franchise. 80 Level features co-founder Greg Zeschuk, who attributes the closure to executives who have never made a game and a corporate shift toward sports titles, calling the buyout the 'final nail in the coffin.'

Why it matters

The closure signals a broader industry trend where publishers prioritize high-budget, lower-risk licensed shooters over complex, long-development RPGs to manage debt and maximize short-term returns, potentially ending iconic franchises like 'Mass Effect.'

What to watch

Studios DICE and Respawn are expected to collaborate on 'Star Wars Battlefront 3.' Fans continue to campaign for EA to license the 'Mass Effect' IP to another studio, while EA has not responded to public pressure.