Electronic Arts Inc. saw its stock price fall severely after releasing 2025 financial forecasts that were much lower than expected.
EA said its initial guidance for fiscal 2025 expected “mid-single-digit growth,” but the company has done a complete 180-degree turn and now expects “moderate single-digit decline.” ” is predicted.
Two initiatives were specifically mentioned as reasons for the decline in revenue, with EA blaming global soccer programs for the bulk of the losses.
This relates to EA FC 25, the brand's flagship soccer game that lost its FIFA partnership in recent years. FIFA has since signed the contract It is rumored that they are planning a new game under license with Studio Konami in 2024.
EA's Global Football had two consecutive years of double-digit sales growth, but in 2024, the sector “experienced a deceleration” of around single digits, EA said. press release.
Another failed project was Dragon Age: Origins, EA's latest Dive Intext Extremewekeness.
As a result of these missed forecasts, our net revenue forecast has decreased since our previous report.
in projection Released in October 2024, EA expected net bookings of approximately $2.4 billion to $2.55 billion in the third quarter of 2025, ending in March. That forecast has been updated to approximately $2.215 billion.
In fiscal 2025, it was expected to earn between approximately $7.4 billion and $7.7 billion. That number has been updated to range from $7 billion to $7.15 billion.
“We continued to deliver high quality games and experiences across our portfolio,” CEO Andrew Wilson asserted. “However, Dragon Age and EA Sports FC 25 fell short of online reservation expectations.”
Wilson claimed that early feedback on the latest update to the soccer game was “encouraging” and that the company was confident in its long-term strategy.
As a result of the new prediction, the EA's stock price It has fallen to its lowest point since early 2020, going from about $142 per share to about $115 per share per day.
Dragon Age: Origins saw significant backlash in September after fans realized that the game's plot and mechanics overwhelmingly included political and biological beliefs.
Gender pronoun options have also been added, including “they/them” and “non-binary”.
Gamers were able to turn on or off “Top Surgery Scars,” which refers specifically to transgender surgeries. This is in addition to the second, more common option of scars and cellulite on the player's body.
The storyline was littered with gender ideology and dialogue that was very specific to certain identities. Not just games included entire cutscene Dedicated to teaching gamers how to use pronouns correctly (and apologizing for misuse), it featured a plotline about characters – who are mythical creatures. come out to her family Dinner as a “non-binary” person.
Like Blaze News? Bypass censorship, sign up for our newsletter and get stories like this straight to your inbox. Sign up here!
