I've been wondering about this for a while, when a game like Apex Legends makes as much money as it does, does that money go straight to Respawn or does EA get it and they decide where that money goes? Respawn is producing other games, so would EA give some of that money to those games or could they give money to other EA games not under Respawn? I hope that makes sense?
It is important to realize here that Respawn is part of EA and not a separate independent entity. The nutrients from food I eat don't go only to my right hand and not the rest of my body. Those nutrients are generally used to sustain my entire body. My body will, of course, favor the parts that it thinks it needs with those nutrients - muscles grow bigger and stronger if they are exercised, fat deposits grow if the body is getting extra energy, injuries need to be healed over time, and so on. Also, certain parts of the body will receive fewer nutrients if they are deemed less necessary - like how unused muscles will atrophy over time.
Similarly, EA uses the money they earn from Respawn's games (and all of their other games) to sustain all of their development studios as well as all of their other costs (marketing, publishing, HR, taxes, rent, benefits, legal, licensing, paying off debt, etc.). Centralized costs like legal, HR, benefits, recruiting, etc. don't necessarily earn money directly for EA, but still cost money and are necessary for running the company. These costs must be covered by the parts of EA that do earn money directly. Anything the company earns beyond those total overall costs is profit, which is usually reinvested in the company and/or paid out to shareholders.
That isn't to say that Respawn gets only what it needs to survive and nothing more. EA (like most publishers) has an internal bonus system that is supposed to reward the parts of the company that do well. If the company is doing well overall, all company employees get a bonus. If a specific part of the company is doing better than expected and the company is doing well, the specific part gets a bigger bonus as a reward for being a major driver for the overall company success. EA could also decide to invest more into Respawn so it can tackle bigger projects and hire more people in the future.
In like manner, if Respawn’s upkeep costs more money than expected and their games fail to meet corporate expectations, it is likely that Respawn would get scaled down to reduce costs (which usually means reduced headcount). They would likely lay off the extra employees and/or transfer them to a different studio under the EA umbrella to work on a different project. This is what happened to Bioware’s Montreal studio after Mass Effect: Andromeda failed to meet expectations - some of the studio employees were let go or quit, and others were transferred to EA Motive to work on Battlefront 2.
In summary - Respawn is part of the whole that is EA. The money EA takes in from Respawn’s games (and all of EA’s other games) is used to sustain EA as a whole, including paying for all of the necessary non-development costs. EA generally rewards the entire company when things are going well with bonuses, and will reward specific business units even more for exceeding expectations with even bigger bonuses. Business units that don’t meet expectations get downsized and those saved resources will be reallocated to other units.
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