In This Article:
(Bloomberg) -- Shares of Electronic Arts Inc. plunged 18% Thursday morning, the biggest decline since 2008, after the gaming company warned its financial results would be weaker than expected due to poor sales results of two titles released over the holidays.
Most Read from Bloomberg
-
How Sanctuary Cities Are Preparing for Another Showdown With Trump
-
Texas HOA Charged With Discrimination for Banning Section 8 Renters
Bookings fell to about $2.22 billion in the third quarter ended Dec. 31, missing forecasts of $2.4 billion to $2.55 billion, the Redwood City, California-based publisher said in a preliminary statement Wednesday. EA also reduced projected bookings for the 2025 fiscal year to a range of $7 billion to $7.15 billion. Its previous guidance was for $7.5 billion to $7.8 billion. Bookings from live services — revenue generated after the initial purchase of a game — will decline by a mid-single-digit percentage. The company had earlier expected a mid-single-digit increase in bookings.
EA pinned most of the blame on its soccer title, EA Sports FC 2025, which was released in September to mixed reviews. The company introduced a refresh this month.
Shares fell to as low as $117 as trading got underway in New York on Thursday. The stock has declined 12% over the past 12 months.
The roleplaying game Dragon Age: The Veilguard, which came out in October following a turbulent development cycle, reached 1.5 million players during the quarter, missing the company’s expectations by around 50%.
“We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline,” Chief Executive Officer Andrew Wilson said in the statement.
The company is scheduled to report more complete results on Feb. 4.
(Updates with stock trading)
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.