Electronic Arts Reportedly Looks to AI to Slash Expenses Under New Ownership

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Electronic Arts, the creator of well-known games such as Madden NFL, Battlefield, and The Sims, is being acquired by a group of investors in what will be the biggest buyout deal ever financed by private equity.

The agreement is worth $55 billion and involves Saudi Arabia’s sovereign wealth fund, Silver Lake Partners, and Affinity Partners, a firm led by Jared Kushner, the son-in-law of President Donald Trump. EA stockholders will receive $210 for each share they own. This represents a significant valuation and offers a substantial return to investors.

The Saudi Public Investment Fund (PIF), which is already the biggest single investor in EA, will maintain its 9.9% ownership in the company.

Andrew Marok at Raymond James notes that the Public Investment Fund (PIF) started investing in gaming in 2022, acquiring ownership in prominent companies and purchasing businesses such as ESL, FACEIT, and Scopely. “PIF is clearly aiming to expand its gaming division, Savvy Gaming Group, and acquiring EA would be its largest step in that direction by far,” Marok explained.

This agreement comes after news of the acquisition leaked last week. It’s predicted to be finalized in early 2027, assuming it receives the go-ahead from both shareholders and regulators. Electronic Arts’ (EA) CEO, Andrew Wilson, will continue leading the company for now. This is a significant development, and we’ll continue to follow it closely. Further details will be released as they become available.

I was reading the Financial Times, and it sounds like the new folks in charge of EA have some big plans! Apparently, they’re going to use artificial intelligence to help lower expenses and get a handle on EA’s debt. It’ll be interesting to see how that plays out, honestly.

The future of game development may see AI taking on more responsibilities, which could lead to fewer jobs for developers and actors, although the specifics are still uncertain. This development follows closely after the creation of the United Videogame Workers Union, formed in part due to concerns about AI and the recent wave of job losses within the gaming sector. It’s a rapidly evolving situation.

According to the Financial Times, investors believe that reducing costs with artificial intelligence will greatly improve EA’s earnings over the next few years. They also stated that the acquisition is “a significant gamble on AI’s ability to lower EA’s expenses, which will help the group of investors handle the large amount of debt for a company that hasn’t typically had much debt.”

EA is already using generative AI thanks to its Search for Extraordinary Experiences Division. CEO Andrew Wilson stated in May 2024 that AI is speeding up and improving game development. “We’ve gone from taking six months to build stadiums to just six weeks,” he explained, specifically mentioning their football games. He also noted that AI allows developers to “focus on the enjoyable parts of development sooner.”

While improving efficiency is important, it doesn’t automatically guarantee job security. EA has already downsized its team in recent years, initially reducing its workforce by roughly 5% – about 670 employees – in 2024. They then laid off an additional 300 people and also closed one of its newer development studios.

The acquisition led by Saudi Arabia also brings up concerns about how employees might be impacted while working for investors from a country with a questionable human rights history. Getting official approval could take a significant amount of time, much like Microsoft’s purchase of Activision Blizzard, which was reviewed for years by the U.S. Federal Trade Commission.

Game developers at EA could see significant shifts in the coming years. This is because artificial intelligence is playing an increasingly important role in how games are made, and the company is transitioning to being privately owned.

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2025-10-02 22:45