Electronic Arts shares plummeted by 18%, the biggest drop since 2008. This huge drop came after the company warned that its financial results would be lower than expected due to poor sales results of two games.
EA put most of the blame for the poor financial results on its football game EA Sports FC 2025, which was released in September and received mixed reviews. This month, the company introduced an update.
Another culprit is the role-playing game Dragon Age: The Veilguard, which was released in October after a tumultuous development cycle. It reached 1.5 million players during the quarter, falling short of the company’s expectations by about 50%.
According to preliminary results, order volumes in the third fiscal quarter (ended December 31, calendar year 2024) fell to $2.22 billion, falling short of the forecasts of $2.4-2.55 billion. EA also lowered its forecasted orders for fiscal year 2025 to a range of $7 billion to $7.15 billion. The previous forecast was $7.5 to $7.8 billion. Orders from live services – the revenue received after the first purchase of a game – will decrease by an average of single-digit percentage. Previously, the company expected an average single-digit growth in orders.
The company plans to publish full financial results on February 4.
Source: bloomberg
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