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EA closing Chicago studio

An internal memo from EA Games president Frank Gibeau confirms that the company is closing its Chicago studio

An internal memo from EA Games president Frank Gibeau confirms that the company is closing its Chicago studio.

Kotaku has purportedly obtained a copy of the memo detailing the fate of the studio. EA confirmed the closure, but has not yet released any additional details.

In the document, Gibeau indicates that news of the Chicago closure was intended to be included in EA's quarterly earnings announcement but was delayed out of respect for the death of a colleague at the studio.

"We're willing to take risks, make long-term investments, and to support teams and individuals between launches," Gibeau wrote in the memo.

"But each team is responsible for staying on a reasonable path to profitability. Sticking to that strategy is what gives us the financial resources and flexibility to take risks on new projects.

"Unfortunately, EA Chicago hasn't been able to meet that standard. The location has grown dramatically in the past three years while revenue from the games developed there has not.

"The number of employees has grown from 49 in 2004 to 146 people currently in the new facility in downtown Chicago. As it stands, EA Chicago has no expectation of hitting our profitability targets until FY2011 or later."

Gibeau goes on to say that closing the studio is the toughest decision he has made in his career, but he is convinced that it's the right thing to do for the future of the Games Label and EA.

EA will be offering relocation opportunities to many employees as well as outplacemenet assistance and severance to all eligible employees.

No mention was made of the fate of the Marvel comic character fighting game that the studio is reported to have been working on, nor the future of the Def Jam franchise.