Stock Prices of EA Drop by 17% Due to Disappointing Previews of Dragon Age and EA Sports FC 2025
Rewritten Article:
EA's stock took a massive hit on Thursday, plummeting a staggering 17% – its biggest price drop since the 2008 financial crisis. The culprit? Two underperforming games that left the company's earnings in tatters.
EA revealed that its Q4 2024 bookings clocked in at $2.22 billion, a far cry from the projected $2.4-$2.5 billion. Moreover, the company scaled back its fiscal 2025 forward-looking bookings from a maximum of $7.8 billion to a mere $7.15 billion.
Follow-on revenue from game purchases took a significant nosedive as well.
The star performer responsible for this financial freefall? None other than EA Sports FC 2025. Launched in September, this title has underwhelmed since its debut, following a three-part series after EA parted ways with FIFA over licensing fees.
Another letdown was Dragon Age: The Veilguard, a role-playing game that managed to find its way into the hands of only about 1.5 million players during the last quarter – half the expected number.
Despite these concerning figures, EA CEO Andrew Wilson remains optimistic about the company's future, expecting growth to return in the 2026 fiscal year.
While the search results don't explicitly link EA Sports FC 2025 and Dragon Age: The Veilguard to EA's stock plunge in 2024, they do mention broader challenges faced by Electronic Arts, such as:
- Softening Gaming Demand: The anticipated revenue decline for Electronic Arts in 2025 may have started in 2024 due to a softening gaming market[2].
- Escalating Costs and Stagnant Free Cash Flow: Electronic Arts grapples with increasing costs and a static free cash flow, which could signal potential forthcoming issues and dampen investor confidence[3].
- Share Recovery After Slump: In January 2025, Electronic Arts' shares rebounded after a steep decline, bolstered by the success of sports titles. However, this recovery occurred after the 2024 period in question[3].
- Microtransactions and Consumer Perception: The company's reliance on microtransactions can be a concern if consumer sentiment shifts negatively, which could impact future growth prospects[4].
To fully grasp the reasons behind the stock dip in 2024, more information is needed on the performance of EA Sports FC and Dragon Age: The Veilguard. These details aren't included in the available search findings.
Technology-driven industries such as finance and business have reported a decline in investor confidence in Electronic Arts, following the company's dismal performance in Q4 2024. This downturn can be partially attributed to underperforming titles in the sports and technology sectors, specifically EA Sports FC 2025 and Dragon Age: The Veilguard, both of which failed to meet expectations.
