Electronic Arts Stock Drops 16% After Admitting Recent Games Underperformed
Solomon Thompson / 6 days ago
Electronic Arts has recently faced a significant drop in its stock value following the admission by its CEO, Andrew Wilson, that the company’s two latest major video game releases underperformed.
The games in question, EA Sports FC 25 and Dragon Age: The Veilguard, did not meet the company’s expectations. This shortfall has compelled Electronic Arts to revise its financial forecast for the current fiscal year.
Stock Prices Plummet After Underwhelming Game Performance
The market reacted swiftly to this revelation, causing a steep decline in the company’s stock price. Electronic Arts’ shares have fallen by 16% compared to their value a year ago, erasing approximately $6 billion from the company’s market capitalization. This plunge brings the stock price to levels not seen in several years, though the decline was far more abrupt this time.
Despite this setback, the company remains optimistic about its long-term strategy. Electronic Arts aims to rebound and resume growth in the 2026 fiscal year, which begins on March 31, 2025. Stuart Canfield, the company’s CFO, expressed confidence in this goal, stating that they expect to grow by releasing more titles from their flagship franchises during that period.