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Is the Closing of a "Star Wars" Game Studio a Warning Sign for Electronic Arts Investors?


Is the Closing of a "Star Wars" Game Studio a Warning Sign for Electronic Arts Investors?

Right in time for the Halloween season, Electronic Arts (NASDAQ: EA) has delivered news that has given some shareholders a fright. The publisher announced on Oct. 17 that it would be closing Visceral Games, a studio within the company that had been working on a big-budget Star Wars game. The title will be picked up by a new team but will undergo a substantial change in direction and is now likely years from release.

With the company's shares down roughly 4% following the news, it's worth taking a look at whether the closing of Visceral is merely a near-term setback or a potential indication of more serious problems at EA.

EA's Star Wars Battlefront II will still be launching this November, but one of the company's other in-development games based on the famous sci-fi series appears to be in trouble. Image source: Electronic Arts.

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Source: Fool.com

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