Video game giant Electronic Arts reported earnings today for its fiscal third quarter ended December 31, and it could have gone better during the all-important holiday period. While EA did post gains in revenue and profit, the company said in its official remarks that it was a "difficult quarter" that saw the company fail to meet its commercial expectations.CFO Blake Jorgensen said in prepared remarks that 2018 was a "tumultuous" year for the gaming industry overall. Though he did not share any specifics, he might have been referring to the way in which the absolute juggernaut Fortnite shook up the industry in the past year. Not only that, but Red Dead Redemption 2's release in October might have impacted sales of EA's games.While it might not have been the quarter EA wanted, Jorgensen said EA is "making adjustments to improve execution and we're refocusing on R&D." EA CEO Andrew Wilson said the company is looking to "sharpen" its execution going forward.One title that struggled … [Read more...] about EA Has “Difficult Quarter,” Stock Price Nosedives
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The last two years have been a disaster for EA and things don’t seem to be improving for the company at the financial front. We previously reported how the company’s stock dropped 44% in 6 months thanks to the botched PR and launch of Star Wars Battlefront 2 and Battlefield V. EA’s stock value has been in a state of flux since late last year and it seems the continued failure is forcing top EA execs to abandon ship and pull out their money from the company. In the recent week and months, top EA execs have pulled millions from the company which is a clear sign of “every man for himself” mindset among top Electronic Arts execs after the continued failure. Battlefield 5, Star Wars Battlefront games, and even FIFA Ultimate Team aren’t generating enough revenue for the company. EA’s dubious practices and aggressive monetization is to blame for consumer mistrust that led to the company’s current state. Many of the buyers of Star Wars, … [Read more...] about EA Execs Dump Millions Worth of Company Stock Amid Crisis
In the modern world of gaming, buying a video game is just an opening for bigger things as the companies now tend to make more money through additional purchasable content. As the highly anticipated Red Dead Redemption 2 is getting closer to its launch let’s take a look at how the game could shape things up for its holding company, Take-Two Interactive’s stocks. Red Dead Redemption 2 can potentially take the revenues of Take-Two to incredible heights. According to the expert opinion of Michael Olson at the Piper Jaffray, Red Dead Redemption 2 could lift the Earnings Per-Share of Take-Two Interactive by one dollar each which is projected at $4.84 at this time. Moreover, after looking at it in an optimistic way, the game is being backed by Olson to harvest about $500 million which presently is proposed to have $250 million for the fiscal revenue of 2020. While Red Dead Redemption 2 is taken into consideration here just to put things into perspective for you, other renowned … [Read more...] about What Could The Success Of Red Dead Redemption 2 Mean For Take Two’s Stock?
Electronic Arts announced yesterday that Battlefield V will be releasing later than the initial release date. Due to the delay announcement, Electronic Arts Inc. has also faced a huge cut in their stocks. The suspension of Battlefield V October 19 release date has cost the video game company quite a fortune. EA has seen a straight drop of 10 percent in the trading of net bookings in the U.S alone. Before EA decided to push the release date of Battlefield V the full-year guidance for their net booking was at $5.55 billion. However, upon the completion of the 2019 fiscal year in March the net bookings of Electronic Arts stand at $5.20 billion. The Chief Financial Officer, Blake Jorgensen at EA established in an official statement regarding the stock issues saying: We’re updating our fiscal year guidance to reflect the updated launch date for Battlefield V, the ongoing impact of foreign exchange rate changes, and our current outlook for our mobile business The video game … [Read more...] about Battlefield V Delay Causes 10% Drop in EA Stock
Electronic Arts is currently on the right track to make up for all the commotion past decisions regarding Star Wars Battlefront 2 has caused. Right after the company announced they are bringing back the Star Wars Battlefront 2 Microtransactions, its stock price has reached a new all-time high at $130. In February 1st, Electronic Arts stock price managed to reach a maximum price of $130 before settling to a $126.96 with the day’s end. That’s actually 7% up to what the price was yesterday and far more than what the company had over the last few months. Whether we like it or not, microtransaction mean more money for a company like Electronic Arts and investors are happier when their money is not wasted. The new Star Wars Battlefront 2 Microtransactions model will ensure more income without jeopardizing the company’s name and fame. The company is forecasting revenue of $5.1 billion for its fiscal year ending March 31 and profit of $1.015. Take a look … [Read more...] about EA Stock Price Reaches All-Time High As Star Wars Battlefront 2 Microtransactions Return