So I feel that people are misunderstanding the issue here and that in fact closing Visceral didn't actually close the office Visceral was operating out of.
Visceral was working out of Redwood City, CA which is close to San Francisco but not SF.
https://en.wikipedia.org/wiki/Visceral_Games
EA Redwood Shores is still very much active and hiring as per their careers page I linked.
The cost of employees is virtually the same in Redwood City as it would be in SF, though they might pay 10-15% more depending on the role in SF.
Closing Visceral because of employee costs is not the reason, otherwise they would have shut down the whole office/studio.
I live in the east bay and work in SF. It is an expensive area but the reason companies are here is not because they like to spend a lot on their employees and real estate, but because this is where most of the talent is. It is hard to get people to move here, but there is a critical mass of talent. There is a bit of virtuous cycle going on, companies founded here, employees move, more talent here, companies found here because there is more talent, more employees move, more companies and so on.
It is insane, I don't like the cost, but it is a great area and I enjoy it. Thinking about moving back to my home town feels depressing a bit other than having my family closer by.