Electronic Arts shares declined by more than 16% this week, or $6 billion in market value, following its pre-earnings announcement that FC 25 and Dragon Age: The Veilguard has failed to meet its expectations.
On Wednesday, EA warned the market that it now expects a decline in its live service revenue for its current fiscal year, after previously forecasting growth. Primarily, the decline was attributed to an FC 25 “slowdown” during the Christmas period.
In addition, EA said that the BioWare RPG Dragon Age: The Veilguard – released in October – has missed its expectations by around 50%, with 1.5 million “players” reached.
By Thursday, the publisher had lost $6 billion from its market value of $37.3 billion, following the pre-earnings news. EA FC generates around $2 billion annually, Reuters reports, with around $800 million of that made up by Ultimate Team.
“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,” said MoffettNathanson analysts.
EA Sports FC 25 received the franchise’s most significant mid-season gameplay overhaul to date last week, which included some of the most sought-after community requests, according to EA.
Dragon Age: The Veilguard was released in October for PS5, Xbox Series X/S, and PC. Earlier this month, the game’s director, Corine Busche, confirmed she was leaving BioWare for an offer she “couldn’t turn down.”
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