EA shutdown a studio called BioWare but this BioWare isn’t the one I knew and loved. That studio got lost somewhere along the way. It sucks that people lost jobs but I’ve already grieved as a fan. I just hope Bungie end up actually turning it around
The problem with studios and companies now they just shut down when they have a couple of misses. Does no one remeber the capcom days of resi 5, resi 6, operation racoon city, dmc and dead rising 3? In recent years they have delivered time and time again. All they needed was space and patience.
I for one would like to thank the Saudi state for their intervention into our media culture, thank goodness they're around to ensure we are served the most profitable content. I would never want to get in the way of MBS's vanity projects.
We all saw it coming. Even besides the Saudi buyout, it's been what… 13-14 years since the end of the Mass Effect trilogy? The new game was in 'early development'. That doesn't fly. Yes there was Andromeda which was garbage, and yes they've been working on other games, but it doesn't matter. You used to see people walking in public wearing N7 jackets. They lost the momentum. You can't go that many years without some meat on the bone.
I had the opportunity to work on Andromeda and while Im sad to see it bioware go they really struggled creatively. I always wished they would find their vision again, wishing all the employees well.
EA management must have been really pissed at the last Mass Effect review. As Jason has stated, game development includes in process reviews where leadership reviews game progress, budget, schedule, etc. If a game meets or exceeds milestones, development continues and they authorize the next batch of funding. Mass Effect has been delayed for years, rumors are that BioWare has exceeded budget, so EA not only cancelled it but also cashiered the entire studio. This shutdown is EA’s lack of confidence in BioWare not only for Mass Effect but their other recent high profile flops.
Unfortunately this was predictable. I knew as soon as the doctors sold to EA amd cashed out to microbrew beer that BioWare was on a ticking clock to oblivion. I cannot think of one studio that has thrived post acquisition, all of them became worse and eventually got spun off or cease to exist.
So uhh… a leveraged buyout is when you go "I wanna buy a business" but you don't have enough money to buy the business so you go to the bank and say "I wanna take out a loan to buy a business" and they say "how will you pay for the loan" and you say "the business I want to buy will generate enough money over time to pay for the loan" and if you have enough power/connections/clout they'll just let you do that?
this is a tragedy and the next time a megacorp tries to convince you that consolidation is fine, actually, remember the tens of thousands of employees who’ve been shitcanned over the last decade.
outside of the indie space, i don’t see how the industry survives this—who would want to be in the next generation of games devs? it’s not an aspirational career anymore. the corporations have made ‘digital toymaker’ an unappealing job. howTF did we get here
Also how the fuck is leverage buyout okay? A company is being "bought", but the money is being assinged to the company as debt? What the actual fuck? Why the fuck can't i buy a car from ferrari and make them write it as a debt that they'd have to pay to me?
In response to a "go woke go broke" comment that I half expect will be deleted by the author: it's quite the opposite happening here. It's more like "go end-stage capitalism, go broke".
EA was bought out by the Saudi government (notoriously authoritarian) with the facilitation of Jared Kushner (son-in-law of Donald Trump), the backing of his private equity firm and a second American PE firm, and the approval of the Trump administration and the European Union. It was a leveraged buyout, meaning an $18 billion debt for the purchase (due to American bank JPMorgan Chase) was placed on the company itself rather than the buyers. The investors get a payday, and the company must reduce "organizational inefficiencies" to pay off the debt – a nice way of saying that EA as a whole will be stripped for parts until the debt (which will accrue $1.8 billion in interest annually) is paid off. For context, EA's annual net income (i.e. profit after all operating costs) has hovered around $1 billion annually over the last five years. They'd have to more than double that in order to be able to even make a dent in the accruing debt, so cutting costs through shutdowns and layoffs is the way they will plan to balance it out. Very commonly in cases like this, if the new owners aren't able to effectively reduce the debt, they try to sell the company off to someone else, and if that doesn't work out, the company files for bankruptcy or closes outright.
In summary, BioWare's closure (as part of the removal of 400 positions within the company) is an early symptom of massive cost-cutting measures at EA over the foreseeable future, and almost certainly the beginning of the end of the company as a whole unless they somehow obliterate revenue expectations in that time frame.
There is no hope for future for artistic or RPG minded development studios underneath these big megacorporations. BioWare shriveled and died under EA, with their games becoming simpler and worse over time. Obsidian and InXile will shrivel and die under microsoft. Indie or cooperative is the only way.
I'm gonna go out on a limb here, make a bit of a hot take: This won't be the last studio EA shutters. EA's Saudi masters want more money from the EA than it has ever made before to cover that LBO.
While sad to see this happen, the BioWare that was closed is not the BioWare that brought us all those amazing games back in the day. I wonder how many of us were actually looking forward to a new release from them. That being said, I will also echo the voice of others and say these big corporations have access to way too many financial tricks which do more harm than good.
the way this has all happened is completely miserable regardless of how you felt about EA or how things have been going with Bioware under EA's leadership; a big American company sold out to effectively slaveholding monarchs in one of the largest leveraged buyouts in history, which was allowed to go forward because Trump's son-in-law brokered the deal and profited from it, now its gonna be pretty heavily dismantled
9:17 Always worth pointing out that the money in "Kushner's" investment fund was a kickback from the Saudis after Trump 1. So EA was bought by Saudi Arabia, Silverlake, and Saudi Arabia again but with sunglasses and a fake mustache.
Dragon Age: Origins is still one of favorite video games. I remember getting it for free on games with gold in 2016. I was struggling with anxiety and depression at the time and couldn't start college that fall. I remember playing this game between shifts at work and it really gave me hope and something to get me through each day during one of the hardest times of my life. I'll always remember that and be thankful to BioWare. RIP
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
EA shutdown a studio called BioWare but this BioWare isn’t the one I knew and loved. That studio got lost somewhere along the way. It sucks that people lost jobs but I’ve already grieved as a fan. I just hope Bungie end up actually turning it around
The problem with studios and companies now they just shut down when they have a couple of misses. Does no one remeber the capcom days of resi 5, resi 6, operation racoon city, dmc and dead rising 3? In recent years they have delivered time and time again. All they needed was space and patience.
Leveraged buyout sounds like it shouldn't be legal…
Oh well, wonderful world of modern economics…
I for one would like to thank the Saudi state for their intervention into our media culture, thank goodness they're around to ensure we are served the most profitable content. I would never want to get in the way of MBS's vanity projects.
We all saw it coming. Even besides the Saudi buyout, it's been what… 13-14 years since the end of the Mass Effect trilogy? The new game was in 'early development'. That doesn't fly. Yes there was Andromeda which was garbage, and yes they've been working on other games, but it doesn't matter. You used to see people walking in public wearing N7 jackets. They lost the momentum. You can't go that many years without some meat on the bone.
I had the opportunity to work on Andromeda and while Im sad to see it bioware go they really struggled creatively. I always wished they would find their vision again, wishing all the employees well.
Of course they are corporate consolidation kills everything its like a disease
We need a pod with you and Lucas Shaw. That would rock so hard.
EA management must have been really pissed at the last Mass Effect review. As Jason has stated, game development includes in process reviews where leadership reviews game progress, budget, schedule, etc. If a game meets or exceeds milestones, development continues and they authorize the next batch of funding. Mass Effect has been delayed for years, rumors are that BioWare has exceeded budget, so EA not only cancelled it but also cashiered the entire studio. This shutdown is EA’s lack of confidence in BioWare not only for Mass Effect but their other recent high profile flops.
Unfortunately this was predictable. I knew as soon as the doctors sold to EA amd cashed out to microbrew beer that BioWare was on a ticking clock to oblivion. I cannot think of one studio that has thrived post acquisition, all of them became worse and eventually got spun off or cease to exist.
So uhh… a leveraged buyout is when you go "I wanna buy a business" but you don't have enough money to buy the business so you go to the bank and say "I wanna take out a loan to buy a business" and they say "how will you pay for the loan" and you say "the business I want to buy will generate enough money over time to pay for the loan" and if you have enough power/connections/clout they'll just let you do that?
this is a tragedy and the next time a megacorp tries to convince you that consolidation is fine, actually, remember the tens of thousands of employees who’ve been shitcanned over the last decade.
outside of the indie space, i don’t see how the industry survives this—who would want to be in the next generation of games devs? it’s not an aspirational career anymore. the corporations have made ‘digital toymaker’ an unappealing job. howTF did we get here
Also how the fuck is leverage buyout okay? A company is being "bought", but the money is being assinged to the company as debt? What the actual fuck? Why the fuck can't i buy a car from ferrari and make them write it as a debt that they'd have to pay to me?
Holy shit…
This sucks
Cant Wait to not play another copy and paste sport game
This one hurts… Horrible news. The profit motive is killing creativity nonstop.
Well it’s sad people lost their careers. Duh. But also, that studio wasn’t the same one from the golden era
I hope someone picks up the Mass Effect IP, like Larian did for Baldur's Gate
Please sell the IPs and dont just lock them away
Thank you, Jason. It's a really difficult day for those who love Thedas and the Citadel.
Fucking bullshit! Fuck private equity. Bullshit.
you ok man most of your videos you seem like its business as usual you seem distraught on this one
In response to a "go woke go broke" comment that I half expect will be deleted by the author: it's quite the opposite happening here. It's more like "go end-stage capitalism, go broke".
EA was bought out by the Saudi government (notoriously authoritarian) with the facilitation of Jared Kushner (son-in-law of Donald Trump), the backing of his private equity firm and a second American PE firm, and the approval of the Trump administration and the European Union. It was a leveraged buyout, meaning an $18 billion debt for the purchase (due to American bank JPMorgan Chase) was placed on the company itself rather than the buyers. The investors get a payday, and the company must reduce "organizational inefficiencies" to pay off the debt – a nice way of saying that EA as a whole will be stripped for parts until the debt (which will accrue $1.8 billion in interest annually) is paid off. For context, EA's annual net income (i.e. profit after all operating costs) has hovered around $1 billion annually over the last five years. They'd have to more than double that in order to be able to even make a dent in the accruing debt, so cutting costs through shutdowns and layoffs is the way they will plan to balance it out. Very commonly in cases like this, if the new owners aren't able to effectively reduce the debt, they try to sell the company off to someone else, and if that doesn't work out, the company files for bankruptcy or closes outright.
In summary, BioWare's closure (as part of the removal of 400 positions within the company) is an early symptom of massive cost-cutting measures at EA over the foreseeable future, and almost certainly the beginning of the end of the company as a whole unless they somehow obliterate revenue expectations in that time frame.
And private equity scores another kill.
Hey! Rambling direct to Cam videos are my thing! Jkjk good story Jason
I'm a simple man when I see a One Take Schreier upload I click 🔥 Rip Bioware
Thank you for your stellar reporting as always. I am going to go cry in a corner now.
There is no hope for future for artistic or RPG minded development studios underneath these big megacorporations. BioWare shriveled and died under EA, with their games becoming simpler and worse over time. Obsidian and InXile will shrivel and die under microsoft. Indie or cooperative is the only way.
leveraged buyouts should be illegal. point blank. no exceptions.
KOTOR and Jade Empire were my link to BioWare. Legends. RIP!
crying…….
Well I saw this coming form a mile away. Sucks to see Biowere collapse in just 6 years.
So extremely deserved, glad to see them put out of their misery finally 😂
That makes me want to cry 😢
wtf
End of an era…
I’m genuinely worried about the Iron Man game
Good riddance. They were severely overrated anyway.
I'm gonna go out on a limb here, make a bit of a hot take: This won't be the last studio EA shutters. EA's Saudi masters want more money from the EA than it has ever made before to cover that LBO.
SuprisedPikachuFace: (says no one)
Bioware died years ago.
All their good stuff can still be grabbed on the cheap and enjoyed.
While sad to see this happen, the BioWare that was closed is not the BioWare that brought us all those amazing games back in the day. I wonder how many of us were actually looking forward to a new release from them.
That being said, I will also echo the voice of others and say these big corporations have access to way too many financial tricks which do more harm than good.
R.I.P. Kevyet mullat. 🍺😮💨
the way this has all happened is completely miserable regardless of how you felt about EA or how things have been going with Bioware under EA's leadership; a big American company sold out to effectively slaveholding monarchs in one of the largest leveraged buyouts in history, which was allowed to go forward because Trump's son-in-law brokered the deal and profited from it, now its gonna be pretty heavily dismantled
9:17 Always worth pointing out that the money in "Kushner's" investment fund was a kickback from the Saudis after Trump 1. So EA was bought by Saudi Arabia, Silverlake, and Saudi Arabia again but with sunglasses and a fake mustache.
Bioware had just been a skin suit worn by people with an agenda to push for a long time.
Watch them sell the Mass Effect IP to fuckin Xbox
Mrmattyplays is going to hurt so bad from this
Dragon Age: Origins is still one of favorite video games. I remember getting it for free on games with gold in 2016. I was struggling with anxiety and depression at the time and couldn't start college that fall. I remember playing this game between shifts at work and it really gave me hope and something to get me through each day during one of the hardest times of my life. I'll always remember that and be thankful to BioWare. RIP
it feels surreal remembering that dragon age inquisition won game of the year. game has had like zero cultural footprint
RIP, Mass Effect. You were great.