Insider report claims that EA’s new investors are betting into AI technology for maximizing profit.
A new report by the Financial Times (currently paywalled) claims to have more knowledge about the operational hopes and plans that the new investors have in Electronic Arts.
In case you’ve missed out on the news, EA has officially announced today that they’ll be bought out and go private after a $55 billion dollar deal from multiple investors. Including Donald Trump’s son-in-law Jared Kushner from Affinity Partners, Saudi Arabia’s Private Investment Fund by controversial prince Mohammed bin Salman and Silver Lake company.
The deal, noted to go in full effect in the first quarter of Fiscal Year 2027, also puts pressure on the company with its $20 billion dollar debt. How does the company plan to keep up with maximizing profit and cutting cost? Apparently, with AI technology.
Electronic Arts’ (EA) new owners are banking big on AI in the future for the company. According to a new report from the Financial Times, the ownership group is betting on AI being able to “significantly cut CEA’s operating costs”.
Per the report (paywalled), the enhanced use of AI will be used as a way to also “boost EA’s profits in the coming years”. This will allow the new owners “to manage a large debt load on a company that historically carried limited net debt.”
For The Sims Franchise, we’ve already seen new AI technology being advertised last year during EA Investors Day. However, the talks mentioned here probably don’t allude to player-facing AI features. But rather behind the scenes operational costs and game development.
There’s no information if the current buyout will have an effect on the number of employees within Electronic Arts and Maxis studio. Still, the mention of speeding up the game development process and cutting operating costs could allude to future layoffs within the company.
What are your thoughts on the new claims about cutting development costs through AI? Join the comments below and stay tuned for more EA and Sims news.
just bad news and more bad news
And so we are witnessing the downfall and perhaps, the end, of an iconic game franchise.
Well it was fun as long as it lasted. Nice to have been part of this community but this is where I draw the line.
Goodbye.
I will never buy another EA game ever again. I’ve been playing the sims since 2008. This is insane.
So is it just general AI or GenAI, cause there is a difference
Damn, I didn’t know EA carried that much debt (20 billion).
They don’t. The debt comes from the deal with the new owners. EA acquires the debt in the deal. The new owners take massive payouts, while slashing jobs and cutting projects. The debt never gets paid. Then the new owners file for bankruptcy, close EA, and that’s that. It’s basically what happened to Toys R Us, Kmart, Joann Fabrics, Radio Shack, etc.
Some important context: Saudi Arabia *already* owns 10% of Electronic Arts. It’s the company’s third-largest institutional shareholder. (…) the far bigger immediate impact will come from the new private EA being on the hook for $20 billion in debt. That could mean mass layoffs, more aggressive monetization, and other big cost-cutting measures (Source: Jason Schreier)
They care about EA Sports not The Sims.
Very disappointing, and yet another moral dilemma to deal with. The Sims has been my place of refuge for years – a way of creating a world I want to live in. Knowing my investment into future packs supports organisations that are bringing harm to real world we live in, taints my enjoyment of the game and makes me complicit in their crimes against humanity.
Are we going to see the fall of Lilsimsie or will she show her true capitalist face by supporting this, it’s so funny, I’m ecstatic.
What a wild thing to say about someone who has repeatedly talked about how she doesn’t want to push people to pay for packs because of how many and how expensive they are.
Paralives is going to be carrying the Life Simulation genre at this rate.
A pity because it seems like a terrible game.
Bad news for Concept Artists and the likes.
EA was already replacing Quality Assurance workers with AI, after this deal, all their franchises will HEAVLY utilize AI