Codemasters Halts Rally Game Development, Focuses on F1 Amidst EA Restructuring
A significant chapter in racing game history has closed. Codemasters, the veteran UK based studio famed for its decades long legacy in creating rally games such as Colin McRae Rally and the F1 games, has confirmed it is “pausing development plans on future rally titles,”.
This also means the end to its involvement with the World Rally Championship (WRC) franchise under parent company Electronic Arts (EA). This comes just over 4 years after Codemasters acquired the WRC license. During those 3 years they only produced one game, EA Sports WRC before the late April 2025 that they were ceasing production of any new rally games.
Layoffs Confirmed Amidst EA Cuts
Following reports of significant layoffs across EA (estimated between 300-400 roles, including major cuts at Respawn Entertainment), Codemasters confirmed to VGC in early May that it has also been impacted. A spokesperson stated EA is “reducing some roles” at Codemasters while attempting to “redeploy as many as possible against our strategic priorities.” The exact number of layoffs specific to Codemasters was not disclosed.
This restructuring appears linked to EA’s strategic shift, potentially driven by financial pressures and a desire to focus on owned IP, major sports licenses, and live service games. Some reports suggest recent Codemasters titles in the F1 and WRC franchises may have underperformed against EA’s commercial expectations.
Refocusing on Formula 1
With all rally game projects ceasing development, Codemasters’ primary focus now appears to be squarely on its flagship F1
series, which operates under an official license from Formula One Management.
The next installment in the F1 game franchise, F1 25, is slated for release on May 30, 2025. This aligns with EA’s stated strategy but represents a significant narrowing of the studio’s historically diverse racing portfolio.
This isn’t the first time Codemasters has seen changes under EA. The Project CARS series had all projects canceled in 2022, and the Codemasters Cheshire studio (formerly Evolution Studios) was merged into Criterion Games to work on Need for Speed that same year.
Legacy and Future
The news has been met with disappointment from rally game fans who have followed Codemasters’ work for decades.
While the FIA has indicated that the WRC gaming franchise will continue under a “new ambitious direction” (implying another developer will eventually acquire the license), the departure of the genre veterans at Codemasters marks a significant moment.
Codemasters remains operational within EA, but its recent journey highlights the volatile nature of the modern games industry, marked by consolidation, strategic pivots, and workforce reductions. The studio that defined rally gaming for generations now looks ahead with a laser focus on the Formula 1 grid.