The gaming industry hasn’t been immune to lower demand caused by high inflation and a lack of new titles — and one of its biggest players is feeling the crunch.
Electronic Arts lowered its full-year net bookings forecast following its earnings report for the fiscal second-quarter ending Sept. 30.
The California-based company known for titles like “Madden NFL” and “Apex Legends” generated $1.9 billion in revenue in Q2, compared to $1.8 billion for the same period a year prior. But expects net bookings to range between $7.65 billion and $7.85 billion in FY2023, down from a previous projection between $7.9 billion and $8.1 billion.
FIFA ended its long-term licensing agreement with Electronic Arts in May with “FIFA 23” — but early returns imply that the last EA title to carry the governing body’s name could leave a big void.
- “FIFA 23” was the best launch in series history with 10.3 million players in the first week.
- Earnings per share reached $1.07 in Q2, compared to Wall Street estimates of $1.35.
- Full-year revenue is expected to range between $7.5 billion and $7.7 billion.
Electronic Arts kept its ties to soccer in August by extending its licensing and sponsorship deal with MLS, which has worked with the video game company since 1999. Electronic Arts also has deals with the Premier League, Serie A, and Bundesliga.
In October, Electronic Arts secured a deal with Marvel Games to develop “at least three” action adventure games for consoles and PC. The deal kicks off with an “Iron Man” title developed at Montreal-based Motive Studio.