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Pandemic were relocated as opposed to shut down - they wanted to get them out of California as that state is apparently 'too expensive'. Most of the staff were relocated to the closest EA studio (I've forgot which one :( ).

Supposed Pandemic are still working on the same projects as before (Mercenaries and Saboteur 2 apparently), and the games will still have the Pandemic name. Just they wanted to get them to a cheaper part of America.

But er, EA will most likely just be the same as this year, struggling but slowly turning it around.