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EA Cuts Hundreds of Jobs at Respawn and Other Studios, Halts Development of Titanfall Title

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Electronic Arts (EA) has announced significant layoffs, cutting between 300 and 400 jobs across its various studios, including approximately 100 positions at Respawn Entertainment. Alongside the workforce reduction, EA confirmed the cancellation of a highly anticipated Titanfall game in development, code-named R7. This project, described as an extraction shooter set in the Titanfall universe, was reportedly still in its early stages and far from release.

A spokesperson for EA, Justin Higgs, explained the restructuring as part of a broader strategy to realign teams and optimize resource allocation for long-term growth. The decision to halt the R7 project reflects the company’s shift in focus toward its strategic priorities and suggests a careful reassessment of ongoing game development efforts. Respawn Entertainment, best known for its work on Apex Legends and the Star Wars Jedi series, confirmed it had paused two early-stage projects and made targeted team adjustments to streamline development.

Despite the setbacks, Respawn assured fans that it remains committed to its flagship franchises. The studio is continuing work on the next installment in the Jedi saga and plans to deliver new seasons and a major overhaul for Apex Legends. These efforts underscore Respawn’s dedication to supporting and expanding its existing popular games, even as it navigates the challenges brought on by the recent layoffs and project cancellations.

EA’s layoffs come amid broader financial pressures following underwhelming sales of recent titles. Earlier this year, the company revised its fiscal year revenue estimates downward after EA Sports FC 25 failed to meet expectations. Additionally, EA scaled back its BioWare studio after the release of Dragon Age: The Veilguard, which reportedly sold 50% fewer copies than projected. These developments indicate a period of transition for EA as it refocuses on profitability and strategic growth in a competitive gaming market.

EA Shares Climb on Strong Forecast, ‘Battlefield’ Launch Amid GTA VI Delay

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Electronic Arts (EA.O) saw its shares rise over 2% on Wednesday, as investors responded positively to the company’s upbeat fiscal 2026 forecast and the upcoming launch of its major title “Battlefield”, which could benefit from a market gap left by the delayed release of “GTA VI” by rival Take-Two Interactive.

EA expects fiscal 2026 bookings to range between $7.60 billion and $8 billion, exceeding Wall Street’s consensus of $7.62 billion (LSEG). The results signal renewed momentum for the gaming giant, especially in its flagship sports franchises like “FC” and “Madden NFL.”

“The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story,” Jefferies analysts noted.

Key Drivers of the Rally:

  • Double-digit monetization growth for “FC” since a January update, easing fears of a slowdown after its rebranding from “FIFA.”

  • Launch of a new “Battlefield” title in fiscal 2026, which could capture attention while GTA VI is postponed beyond that period.

  • Analysts view the delay of GTA VI as a “window of opportunity” for EA to dominate AAA-title sales next year.

The positive sentiment led at least 10 brokerages to raise their price targets, bringing the median estimate to $158 per share. Despite the rally, EA stock is up just 5.6% year-to-date, trailing Take-Two’s 26% gain.

From a valuation perspective:

  • EA trades at ~19.96x forward earnings

  • Take-Two trades at a significantly higher ~31.47x, underscoring investor appetite for its blockbuster GTA franchise

With U.S. tariffs contributing to macroeconomic pressure on consumer spending, EA’s forecast is being interpreted as a sign that demand for premium gaming experiences remains resilient.

EA Forecasts Strong Fiscal 2026 Bookings, Fueled by New ‘Battlefield’ Launch and Sports Titles

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Electronic Arts (EA) projected fiscal 2026 bookings above Wall Street expectations, driven by strong momentum in its flagship sports titles and the anticipated launch of a new installment in the “Battlefield” franchise. The forecast sent EA shares up over 6% in after-hours trading on Tuesday.

EA said it expects bookings to reach between $7.60 billion and $8 billion, slightly surpassing analyst estimates of $7.62 billion, according to LSEG. The company also beat forecasts for its fiscal Q4, reporting $1.80 billion in bookings, compared to the expected $1.56 billion. The performance was buoyed by strong sales of “Split Fiction”, a multiplayer action-adventure game that became one of March’s bestsellers.

CEO Andrew Wilson expressed confidence in EA’s future, citing a “deep content pipeline,” beginning with the summer reveal of the new Battlefield game. The launch comes at a favorable time, filling the void left by Take-Two Interactive’s delay of “Grand Theft Auto VI” beyond fiscal 2026 — a shift that analysts believe opens a window of opportunity for EA to capture player attention and spending.

“Battlefield gives people something to look forward to and to play until GTA comes out,” noted Wedbush analyst Michael Pachter, highlighting the advantage of not having to compete directly with Rockstar’s highly anticipated title.

In addition to Battlefield, EA continues to benefit from its sports gaming portfolio, with titles like “EA Sports FC” and “Madden NFL” remaining fan favorites. Notably, in-game monetization for “FC” rose by double digits following a January update, signaling a rebound after earlier underperformance.

The company’s upbeat guidance also reflects resilience in gaming demand, even as broader consumer spending faces pressure due to macroeconomic factors and U.S. tariffs.