Electronic Arts has recently undergone a significant restructuring, resulting in the rebranding of its long-standing EA Games division as EA Entertainment. Alongside this change, the company has made several other modifications to its overall corporate structure. Coinciding with these developments, Electronic Arts has also announced the postponement of Immortals of Aveum, a highly anticipated release.
Established in 1982 by Trip Hawkins, one of Apple's original 50 employees, Electronic Arts introduced the EA Games brand in 1999 to encompass its publishing division. This label now stands as the company's second-oldest in-house brand, preceded only by EA Sports, which was founded in 1991. Notably, EA Sports has faced challenges over the past year, including the loss of its FIFA license and the release of a poorly received Madden NFL 23.
EA CEO Andrew Wilson announced on June 20 that the company has undergone a significant reorganization. All of its studios have been organized into two divisions: EA Sports and EA Entertainment, formerly known as EA Games. Wilson described this move as an "evolution" for EA, allowing each division to take greater ownership and financial responsibility for their respective projects. The primary objective behind this restructuring is to enhance efficiency and drive the company's growth potential. Wilson emphasized that these changes will ultimately deliver long-term value for both employees and players.
The recent reshuffling at EA has resulted in the appointment of Laura Miele as the head of EA Entertainment and the promotion of Cam Weber to an expanded role as the president of EA Sports. Weber's main focus will be on developing a new brand of soccer games to replace the popular FIFA franchise. On the other hand, Miele will be responsible for expanding the EA Entertainment label, indicating the company's ambitions beyond the video game industry. In line with this, EA has also revealed plans to create a system that pairs popular streamers with sponsors. Despite these changes, the company has not mentioned any alterations to its overall content strategy. EA remains committed to financing projects such as Star Wars Jedi: Survivor and the Dead Space remake, demonstrating their continued support for single-player games.
The restructuring at EA will not impact the leadership of individual studios like BioWare, Codemasters, Motive, and Respawn Entertainment. Following the announcement, EA's stock experienced a 1.75-point decline during NASDAQ's business hours. The true impact of this reorganization on investor sentiment will only be evident when the market reopens on June 21.