Electronic Arts experienced a sharp decline in its shares, sinking over 15% after a dismal reception for its soccer title FC 25. Mixed reviews criticized the game for lacking innovative features. This poor performance has forced EA to lower its revenue forecasts significantly, anticipating a decrease in revenue from their live services segment, which is crucial for the company's profitability. Additionally, weak sales from Dragon Age: The Veilguard further complicated the company's financial outlook. Investors are wary, as EA's stock reflects both immediate losses and a potential market value drop of around $6 billion.
Electronic Arts shares fell over 15% due to unprecedented slowdown in spending on its popular soccer franchise FC 25, leading to revenue forecast adjustments.
The release of FC 25 was met with mixed reviews, with players disappointed by the lack of innovation, resulting in a significant dip in EA’s live-service earnings.
EA's projection of a mid-single-digit decline in live-service bookings highlights the impact of weak spending on recent titles amid economic uncertainty.
Despite an initial optimism reflected in a raised bookings forecast earlier in October, EA's stock now risks losing nearly $6 billion in value due to financial setbacks.
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