Videogame publisher Electronic Arts forecast quarterly net bookings below expectations and missed first-quarter estimates on Tuesday, hurt by high competition and muted spending by gamers, sending its shares down 3% after the bell.
Aug 1 - Videogame publisher Electronic Arts
Legacy videogame publishers such EA are not only struggling with slowing spending, but also fighting for top spots with new entrants like Warner Bros Discovery, whose "Harry Potter"-based game "Hogwarts Legacy" was among the best-selling games this year through May, according to market research firm Circana.
EA said "Star Wars Jedi: Survivor", the latest videogame based on the storied Star Wars franchise launched in April, did well, while it saw lower in-game spending in multi-player shooter game "Apex Legends". EA forecast net bookings in the range $1.70 billion to $1.80 billion for its quarter ending Sept. 30, below analysts' estimate of $1.81 billion, according to Refinitiv data.
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