Game developers’ union condemns EA buyout, urges government to scrutinize deal: “Job losses or studio closures would be a choice, not a necessity”

Games
Leave a comment
20

Madden 25

“EA is not a struggling company,” the union’s statement continues. “With annual revenues approaching $7.5 billion and roughly $1 billion in profit each year, EA ranks among the world’s largest game developers and publishers. That success was built by tens of thousands of EA employees whose creativity, expertise, and dedication made the company valuable. Yet the workers who stand to be affected were not included in the negotiations or discussions around this buyout.”

Historically, private equity buyouts rarely improve working conditions or game quality; layoffs, project cancellations, and studio closures often follow. Many observers also view the Saudi government’s participation as ethically problematic. The UVW-CWA, however, centers its critique on the concrete threat of layoffs and the impact on studios and individual workers it represents.

The union adds, “We are especially concerned about studios that might be labeled ‘less profitable’ despite their essential contributions to EA’s reputation. Since 2022, an estimated 40,000 game industry workers have lost their jobs across AAA and indie studios alike. As Game Developer reports, the proposed transaction would leave EA carrying nearly $20 billion in new debt — who will be protected, which costs will be cut, and which studios might be sacrificed to satisfy investors?”

“If jobs are eliminated or studios closed because of this deal, that would be a deliberate choice made to enrich investors — not a necessity intended to strengthen the company,” the statement says.

The UVW-CWA calls on regulators and elected officials to scrutinize the transaction and to insist on safeguards that protect jobs, preserve creative autonomy, and keep decision-making accountable to the workers who create EA’s games.

Government oversight of major game industry deals has grown. In 2023, the FTC challenged Microsoft’s $70 billion acquisition of Activision Blizzard (a bid the agency ultimately failed to block), and the UVW-CWA stresses that legal review alone won’t guarantee fair treatment for developers and staff.

“Organizing is the only way for workers to secure a genuine voice when ownership changes hands, and it’s the only method that ensures the people who make games have influence over how studios operate,” the union states.

“The value of the video game industry lies in its workers. United as an industry-wide union, we — the members of UVW-CWA — stand together and refuse to let corporate profiteering determine the future of our craft.”

 

Source: gamesradar.com

Read also