this post was submitted on 30 Sep 2025

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EA's new owners are making "a huge bet" on generative AI cost-cutting to help repay a $20 billion loan, claims report (www.rockpapershotgun.com)

submitted 1 day ago by bytesonbike@discuss.online to c/games@sh.itjust.works

78 comments fedilink hide all child comments

The buyers are committing $36 billion of their own equity (briefly and inexpertly, "equity" is the value of your assets after you deduct anything you owe), including the value of the PIF's existing investments in EA. They're making up the rest of the total thanks to a $20 billion loan from JPMorgan Chase Bank. How will they manage that massive debt? According to the Financial Times, who cite unnamed insiders, they're gambling on the deployment of generative AI tools as a gigantic cost-saving measure.

"The investors are betting that AI-based cost cuts will significantly boost EA's profits in the coming years, people involved in the transaction told the Financial Times," the paper wrote (paywall) in their own coverage of the story. The FT elsewhere commented that the acquisition "is a huge bet that artificial intelligence can significantly cut EA's operating costs, allowing the equity consortium to manage a large debt load on a company that historically carried limited net debt."

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[–] Manjushri@piefed.social 16 points 23 hours ago (2 children)

This has got to be some form of vulture capitalism. They will sell off all the IP and physical property, either directly or by spinning off divisions into new companies to sell off. Then sell off any other pieces of the company that they can, and finally they'll take all that income as bonuses for the new owners and leave the remains of EA with nothing but debt and no option other than to file for bankruptcy. Same thing that was done to companies like Toys-R-Us but on a larger scale.

[–] The3represents@sh.itjust.works 5 points 19 hours ago

That was exactly my thought. Extract cash for the owners through massive cuts, gut the company and discard the husk. Classic leveraged buy out scheme.

[–] mnemonicmonkeys@sh.itjust.works 2 points 16 hours ago (1 children)

Thing is, could they even get enough from selling the IP to cover the purchase?

[–] Manjushri@piefed.social 1 points 16 hours ago (2 children)

Probably not and they have no intention to. They will give themselves bonuses and stock dividends that will eat up all the income from selling the IP (and everything else) and then leave the company with nothing but debt forcing it to declare bankruptcy.

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[–] db0@lemmy.dbzer0.com 21 points 1 day ago

Well, they're fucked then

[–] Noise7@lemmy.world 6 points 20 hours ago

Hahaha sure, let them do that.

I always hated them anyway. Good riddance.

[–] BuboScandiacus@mander.xyz 4 points 18 hours ago

EAAI

[–] BlameTheAntifa@lemmy.world 4 points 19 hours ago

Whoops.

[–] AllNewTypeFace@leminal.space 9 points 23 hours ago (2 children)

Also, a bet on consumers being willing to pay AAA prices for slop

[–] djsoren19@lemmy.blahaj.zone 4 points 17 hours ago

They already do, the only difference is now the slop will be made by AI instead of underpaid developers in Romania.

[–] MohamedMoney@feddit.org 3 points 21 hours ago

Don’t they do that already?

[–] Diplomjodler3@lemmy.world 8 points 23 hours ago (1 children)

What a fantastic plan. Nothing could possibly go wrong.

[–] frezik@lemmy.blahaj.zone 1 points 18 hours ago

Stay the course, this will go great.

[–] CyberSeeker@discuss.tchncs.de 5 points 23 hours ago* (last edited 23 hours ago) (1 children)

Vibe coding is one thing, but I am curious about the state of using of AI tools to reduce the cost of generating 3D assets, animations, and textures. I assume they are introducing this into Ignite and their other build tools, for more rapid prototyping if nothing else.

[–] Hackworth@sh.itjust.works 4 points 20 hours ago

For 3D model generation, I've played with Hunyuan3D, Tripo and Trellis. The models they make are impressive, but not production-usable. You'll spend enough time cleaning them up that you may as well make them the old fashioned way.

Most of the benefits of generative image models are already baked into Photoshop. While helpful, not something that's going to give them a competitive advantage.

[–] EdanGrey@sh.itjust.works 4 points 22 hours ago

Well now, I'd already basically given up on EA, glad I made the right choice

[–] Fiivemacs@lemmy.ca 4 points 23 hours ago

good, let them fail more.

[–] HorreC@lemmy.world 2 points 23 hours ago

Not that I bought their games to start, but I can hope this drives others to stop buying their games all just to say fuck you to some of the investors in this.

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