EA disappoints investors following Battlefield bomb

EA’s stocks have taken a sharp dive following what the company called a “difficult quarter”.

CFO Blake Jorgensen cited increasing competition in the video game space from titles like Fortnight, as well as weaker than expected sales for Battlefield V. The game sold about 7.3 million copies, which was 1 million fewer than expected. “It’s always a battle, for time more than a battle for money,” he told Bloomberg.

Total revenue for the quarter ending in March will be about $1.17 billion dollars, about $300 million less than what investors had anticipated. Shares declined 19% in response to the news.

What the earnings report fails to mention is the steady stream of PR disasters EA has had over the past year. First with the Battlefront II loot box scandal, followed by former executive Patrick Soderlund telling people not to buy Battlefield V following criticism over the game’s progressive political slant and historical revisionism. Both things lost them a lot of goodwill with the game buying public.

While controversy has died down somewhat, response to EA’s upcoming blockbuster title, Anthem, has been lukewarm at best. Those taking part in the beta and paid “demo” have reported numerous technical problems and gameplay issues. Interest in sports titles, except for FIFA, is also reportedly in decline as players become fatigued over annual releases.

It’s likely EA is in for a few more rough quarters before the company’s fortunes start to improve.