Reports indicate that EA has shut down BioWare and its Edmonton studio, canceling the next Mass Effect title which was still in early development. These changes occurred as EA pushed forward with a major restructuring, aiming to reduce the number of large-scale game developments.
The report, allegedly sourced from Bloomberg and published by the Los Angeles Times, indicates that EA added approximately $18 billion in debt to its balance sheet after completing a $55 billion acquisition deal in August. The company had previously informed investors of its plan to cut up to $700 million in expenses, including reductions in R&D costs.
EA subsequently announced a major restructuring, aiming to concentrate resources on a smaller number of large-scale projects. Management cited increasingly fierce competition in the action-adventure genre and rising production costs as reasons for reducing the number of simultaneously developed major titles while providing greater support for retained projects.
According to reports, the next Mass Effect title was originally being developed by a small team at BioWare, but the project was ultimately canceled as part of the aforementioned strategic adjustments. Current plans for future entries in the Mass Effect and Dragon Age series have not been disclosed. The report also states that EA management plans to hold a global all-hands meeting in November to further clarify the company's direction.