EA Revenue Forecast Below Estimates As Gaming Declines
American video game developer Electronic Arts Inc. (EA) has delivered a sales forecast for the current quarter that was a drop below analyst estimates.
The figures given from EA on a statement on Tuesday range from $1.73 billion ($2.49 billion AUD) to $1.78 billion ($2.56 billion AUD). This is a considerable drop from what analysts estimated would be $1.86 billion ($2.68 billion AUD).
The low estimates come off the back of a slump in the gaming industry, with spending having dropped 8.7% according to NPD group. The decline comes as COVID-19 lockdowns are lifted, meaning less people are at home playing games. The industry also continues to suffer from supply chain issues affecting hardware.
EA specifically has had a shakey year, still recovering from the catastrophic release of Battlefield 2042 last November, which was met with terrible reviews and a rapidly declining player base. The company has also failed to release any major new titles this year.
EA is due to release the next titles in its massively popular Madden NFL and FIFA series, however even those have been met with issues. EA announced that its 30-year licensing agreement with FIFA has come to an end, and that the series will be renamed as EA Sports FC.
2023 will hopefully be a better year for the gaming giant, who are looking to remake their scifi survivor horror game from 2008 Dead Space, as well as Star Wars Jedi: Survivor. Their free battle royale title Apex Legends, which takes on the likes of Fortnite, is the sixth most watched game on Twitch, and the company’s active player count sits at 600 million.
Net income for EA sat at $311 million ($448.07 million AUD) for the first quarter of the fiscal year, up from $204 million ($293.91 million AUD). Earnings per share sat at 47 cents (68 cents AUD), while analysts estimated just 28 cents (40 cents AUD).