Electronic Arts Falls Short of Quarterly Bookings Estimates Amid Lower Consumer Spending
Updated: Aug 26
Electronic Arts (EA) misses quarterly bookings estimates due to lower consumer spending and intense competition. Sales of popular gaming titles, such as "Star Wars Jedi: Survivor," were impacted during the holiday quarter. Analysts attribute the results to the absence of major game releases and a challenging comparison to the previous year.
Electronic Arts (EA), a leading gaming company, has reported lower-than-expected quarterly bookings due to decreased consumer spending and intense competition in the industry. As a result, the company's shares dropped by over 2% during extended trading.
The holiday quarter proved to be challenging for EA, as high interest rates and stiff competition impacted the demand for its gaming titles, including the popular "Star Wars Jedi: Survivor." Market research firm Circana revealed that games like Microsoft's "Call of Duty: Modern Warfare 3" and Nintendo's "Super Mario Bros. Wonder" dominated sales in December.
Analysts, such as Michael Pachter from Wedbush Securities, attribute the disappointing results to the absence of major game releases during the December quarter and the difficult comparison to the previous year. Pachter stated, "They had to compare to last year's (2022) launch of 'Need for Speed,' and that creates a US$150 million hole in the portfolio... I'd say this is what we should expect without any big new games."
However, there was a silver lining for EA as bookings for their revamped soccer franchise, "FC 24," experienced a 7% year-over-year growth compared to the previous edition.
Electronic Arts (EA) misses quarterly bookings estimates due to lower consumer spending and intense competition.
Sales of popular gaming titles, such as "Star Wars Jedi: Survivor," were impacted during the holiday quarter.
Analysts attribute the results to the absence of major game releases and a challenging comparison to the previous year.
Source: REUTERS
