EA’s Slow Growth Hurts Share Price
Electronic Arts Inc shares droped 7 per cent after weak revenue growth estimates for the coming quarter were announced.
The company pinned the down turn on dwindling sales of Battlefield 1, a tentpole franchise for EA, from the previous quarter.
EA has taken heat for not being responsive to player’s concerns about mishandling precious IP’s (having notoriously botched the Star Wars franchise), loot boxes and other allegedly exploitative business practices.
Combined with the rising popularity of free to play battle royale games, which were massively popular in the relevant quarter, it’s getting tougher for EA to rely on its old methods raising revenue.
Investors are hopeful that upcoming games including Madden NFL and Battlefield V will push sales for the next few months.