Though the plans were in the works for about a year, Electronic Arts has confirmed it's canceling setup of a new studio which was to be based in Vancouver, BC, Canada. The reason is said to be concerns of the global economic situation, and slow holiday sales in North America and Europe. The company continues to operate its Canadian headquarters and Black Box out of Vancouver.

EA's announcement comes just two days after the company lowered its expectations for both revenue and earnings for fiscal 2009.

“These are challenging times, they're uncertain times for our industry and across the board,” EA spokesman Colin Macrae told The Globe and Mail. “We continue to be firmly rooted in Vancouver.”

chautemoc via theglobeandmail.com »