UO Austin HQ being evacuated.

[Borg]

Electronic Arts to close Austin studio

Reuters, 02.25.04, 6:55 PM ET

LOS ANGELES, Feb 25 (Reuters) - Video game publisher Electronic Arts Inc. (nasdaq: ERTS - news - people) will close down its Austin, Texas studio, home to the "Ultima Online" franchise, by the end of April, the company said on Wednesday.

EA, the world's largest game publisher, has been consolidating its development operations around major "hubs" like its Redwood City, California headquarters, its studio in Vancouver and a new facility being established in Los Angeles.

A spokeswoman said development would continue on "Ultima Online" and "Ultima X: Odyssey" at the headquarters studio.

Many of the 100 or so employees in Austin were being offered the chance to move to California, while those who do not move will receive severance packages.

The Austin office is the home of Origin Systems, the pioneering PC game developer that EA acquired in 1992. Rumors had spread in recent days across Internet fan sites devoted to Origin games like "Ultima" and "Wing Commander" that the Austin studio was to be shut down.

EA recently said it would close the home of another studio prominent in the industry's history, "Sims" developer Maxis. Those jobs, like many of the Origin jobs from Austin, are to be moved to Redwood City.

Austin has become a hotbed of game development over the years, and the local gaming community said it would support those Origin employees left behind.

"The subject of EA's plans came up at the International Game Developers Association (IGDA) local chapter meeting yesterday evening and the mood was very upbeat with attendees being very supportive," Christopher Sherman, executive director of the Austin Game Initiative, said in a statement Wednesday.

"With so much talent expected to be available several local studio heads have indicated they are now evaluating accelerating their hiring plans," he said.

Copyright 2004, Reuters News Service