Mark Darrah, a former producer at BioWare, has recently addressed the implications of EA’s massive $55 billion acquisition, emphasizing the potential instability it may bring to the company’s studios, including BioWare. Darrah noted that with this leveraged buyout, EA is facing an additional $20 billion in debt. He warned that this could result in more layoffs and studio closures, particularly as EA looks for ways to reduce costs.

“Adding $20 billion to your balance sheet is going to require substantial interest payments,” he added. “If the interest is around 5%, that translates to $1 billion annually just to service the debt.”

Furthermore, he expressed concerns over the involvement of the Saudi government’s Public Investment Fund and Jared Kushner’s Affinity Partners in the acquisition, suggesting that this could lead to significant shifts in the company’s messaging and culture.

“It’s hard to imagine such influences not affecting EA’s direction,” Darrah said. “If this is a PR move for the Saudi government as much as it is a financial one, it might push the company’s messaging in ways that reflect their interests.”

As EA transitions to a private company, there might be increased opportunities for long-term strategies, but Darrah believes that immediate repercussions will likely include job losses and potential studio closures.

For more insights, check the full article on PC Gamer.