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EA Abandons Plans For New Canadian Studio

EA Abandons Plans For New Canadian Studio

December 12, 2008 | By David Jenkins

December 12, 2008 | By David Jenkins
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More: Console/PC

Electronic Arts has abandoned plans to open a new studio in Vancouver, Canada, citing lower than expected revenues from the current year and the more general effects of the global economic slowdown.

EA already operates two studios in the city: Need for Speed developer Black Box and FIFA developer EA Canada. The new studio was to have been housed in a 20,000 square foot facility in the city's Yaletown district, with planning beginning around a year ago.

No hiring target had been set for the new studio, and it is unclear what its focus would have been.

Despite a rise in critical acclaim for its more recent titles, EA has suffered a number of setbacks this year, with lower-than-expected sales forcing the company to lower its expectations for both revenues and earnings for the fiscal year.

As a result, the company has said it plans to reduce its headcount, consolidate existing facilities, and reduce the number of products produced in the next financial year.

"These are challenging times, they're uncertain times for our industry and across the board," spokesman Colin Macrae told The Globe and Mail. "We continue to be firmly rooted in Vancouver."

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