Weeks before federal regulators decide on the $55 billion acquisition of Electronic Arts (EA) by Saudi Arabia’s Public Investment Fund, along with Silver Lake and Affinity Partners, EA has announced another round of layoffs. These layoffs affect employees in customer support, trust and safety, recruitment, and information technology. The European Union’s regulators are expected to finalize the terms of this deal soon, while U.S. regulators are also nearing a decision.
The gaming industry is witnessing a familiar pattern. Game developers, artists, engineers, quality assurance workers, and support staff have been losing their jobs as publishers consolidate, reorganize, and strive to improve margins. The latest staff reductions at EA involve roles responsible for assisting players with problems, moderating online communities, and managing trust and safety systems.
Affected roles may often be overlooked in headlines, but players notice their absence quickly.
As a Players Alliance member, I’ve interacted with gamers concerned about the industry’s direction. Some worry about layoffs, while others resent rising prices, subscriptions, microtransactions, and what seems like an unending effort to extract more money from players. A shared concern is that decision-makers are increasingly distant from the gaming communities they serve. This sentiment explains why opposition to the EA acquisition has grown to include nearly 100,000 gamers across the nation.
Sens. Elizabeth Warren and Richard Blumenthal have called for increased scrutiny of the acquisition, citing foreign influence concerns and the role of the Saudi Arabia Public Investment Fund. Over 40 House Democrats have separately asked regulators to examine the deal’s implications for workers, competition, and labor markets. Their concerns reflect a growing understanding that ownership structures affect not only investors but also workers, consumers, and communities.
The debate centers around incentives. Supporters claim new ownership could bring resources, stability, and long-term investment. While considering those arguments, regulators should also examine the track record of leveraged acquisitions. Investors often demand returns, leading to layoffs and restructuring. Consumer costs rise, services diminish, and aggressive monetization tactics increase. Companies frequently rely on subscriptions, premium upgrades, microtransactions, and recurring revenue models, reinforcing a perception that gamers are viewed more as revenue sources than customers.
The Federal Trade Commission has stressed that competition policy should account for worker and labor market impacts, not just consumer prices. This perspective is crucial in gaming, where consolidation affects employees and creative teams before appearing on balance sheets. The role of the Committee on Foreign Investment in the United States also warrants serious attention. Congress created the committee to scrutinize transactions involving foreign government-backed entities pursuing significant influence over major American firms. Although EA is not a defense contractor, it is a leading entertainment company, with games and online communities reaching more than 100 million people monthly.
Whether regulators align with the concerns of Warren, Blumenthal, and dozens of House Democrats matters less than conducting a thorough review that the public deserves. The implications transcend one company and transaction, touching on broader issues like consolidation, labor conditions, consumer welfare, and financial institutions’ growing influence in industries central to modern cultural life.
As someone immersed in gaming communities, I don’t anticipate regulators to make decisions based strictly on gamer preferences. I do expect them to assess whether the acquisition could exacerbate the industry’s existing problems. With ongoing layoffs, growing consolidation, and mounting pressure on employees and consumers, finding a solution in another massive private-equity-backed acquisition seems unlikely.
This is why the Federal Trade Commission and the Committee on Foreign Investment in the U.S. should approach the transaction with skepticism. If the evidence aligns with concerns from gamers, workers, and lawmakers, rejection of the acquisition might be warranted.
Otis East is part of Players Alliance.
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