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EA shares plunge after 'difficult' holiday season

Before Apex Legends launched on Monday, it really wasn't a great time to be an EA investor. It's no secret that Battlefield V failed to set the sales charts on fire, and the whole Star Wars Battlefront II controversy is still causing problems abroad for the publisher.

Today during its quarterly earnings calls, EA said that the holiday period was "difficult" as it failed to meet expectations. VentureBeat reported that EA head Andrew Wilson said the following.

The video game industry continues to grow through a year of intense competition and transformational change. Q3 was a difficult quarter for Electronic Arts and we did not perform to our expectations. We are now applying the strengths of our company to sharpen our execution and focus on delivering great new games and long-term live services for our players. We're very excited about Apex Legends, the upcoming launch of Anthem, and a deep line-up of new experiences that we'll bring to our global communities next fiscal year.

VentureBeat added that analysts expected EA to post earnings per share of $1.94, but the results fell short of that and EA's stock price fell 17 percent in after-hours trading. That's quite a dip!

Hopefully Anthem will turn this around. EA also said that Battlefield V's focus on the campaign — which was a series of short scenarios — was in part to blame. Had the developer focused on the "Firestorm" battle royale mode, the situation may have been different. There's no way to prove this because there was just a lot of competition in the "AAA" space this holiday season.

Asher Madan handles gaming news for Windows Central. Before joining Windows Central in 2017, Asher worked for a number of different gaming outlets. He has a background in medical science and is passionate about all forms of entertainment, cooking, and antiquing.

12 Comments
  • Good. I hope this cancerous company goes bankrupt.
  • **** these guys. theyve ruined so many good developers. BIOWare and DICE were my top favs and now they overwork their employees, and no overtime pay. That is abuse. And abuse their consumers with microtransactions.
  • Many development companies don't pay overtime. But yes, screw EA. The list of screwed developers are longer than these two. It all started with me with Westwood Studios, it's only continued since then. The unfortunate part is this won't hurt EA, it will just hurt more studios like it did Visceral.
  • This makes me feel good inside!
  • EA ruined many many games and studios. Now it's time they've learned some lessons.
  • Let's just hope they don't simply dumb the studios they ruined in the process to cover the losses.
  • I am not that sorry for them, they've ruined so many games... They were one of the best till mid 2000's. They've become a money hungry corporation who doesn't care the gamers.
  • No one trusts EA anymore - that is the simple truth. Nearly every game released these days feels like they are half completed/rushed messes that takes nearly a year after launch to finally become stable/viable games.
  • Dear NFL, please come to your senses and end EA's exclusive license rights.
  • how long is their license? isnt it only 10 years?
  • Simply they need to fix Anthem performance issues on Xbox One X. NOW! Because outlook for EA is grim. They released buggy games - Battlefield V. I was ready to buy it, but when I saw what kind of bugs present then I hesitated. I was ready to buy Anthem V and closed alpha looked good. Then I saw reviews for beta and hesitated. They messed with loot boxes and awful PR.
    They need to act quickly, otherwise The Division 2 will eat Anthem alive. They need to start beat the sh* out of their heads and focus on game quality immediately. Show results to the public immediately and slowly but steadily improve their image.
  • It's also "cool" to hate on them for anything and everything.