By Shares in Electronic Arts (EA) reportedly declined by more than 16% this week, the company losing around $6 billion in market value, in the wake of a pre-earnings announcement on Wednesday regarding its “FC 25” and “Dragon Age: The Veilguard” video game releases.
EA warned the market that it expects a decline in its live service revenue for the current fiscal year after previously forecasting growth. The reason for that decline? A “slowdown” in revenue generated by its soccer/football title “FC 25” during the Christmas period.
The “EA FC” franchise generates around $2 billion annually for the company, with around $800 million of that from the game’s ‘Ultimate Team’ mode. One analyst for MoffettNathanson says (via VGC):
“Ultimate Team has come to be viewed as a near Swiss clock of interactive media bookings growth. If it is stagnant, it puts enormous pressure on EA to fill the void.”
The title did receive a major mid-season gameplay overhaul this week with sought-after community requests answered.
In addition, EA advised that BioWare’s fourth “Dragon Age” main game, released in October, missed its expectations by around 50% with around 1.5 million ‘players’ reached. Both titles are said to have underperformed, leading to the lower revenue cast.
Source: VGC
The post Poor “FC 25,” “Veilguard” Sales Hurt EA Stock? appeared first on Dark Horizons.
