Electronic Arts stock down 17% today...

[bgray9054]

Is this an investor reaction to the complete and utter failure of this game or unrelated?

[dolby]

Цитата допису Jayde:

Stock in EA is not down because of Veilguard. The loss of 1.5 million projected units for Veilguard doesn't even move the needle for EA. They bring in $7 billion a year. Big B billion.

The reason stock is down is that most of their downward projection is due to the bottom falling out of FC 25 micro transaction income to the tune of around $300 million in a single quarter.

A whopping 70% of EA's revenue is based on live service games and the stock price is down because it indicates a potentially worrying trend in EA's main money makers of live service titles. FC and other sports games are basically the bulk of EA's income and not meeting expectations over the holidays is very concerning for their long-term revenue streams.

Veilguard is part of what was included, but it was a small (and, importantly, non-recurring part.) Investors are concerned that the trend of lowered FC revenue could continue into future quarters. Falling $300 million in one quarter extrapolated over an entire FY is a huge amount of money.

what nonsense again you really do live in a dream world.

Electronic Arts CEO Andrew Wilson told you and you still trying to spin your own stories so funny... What part of underperform don't you understand that has huge impact on shares...

[Jayde]

I would encourage you to actually read EA's financials some time. Out of their $7 billion per year in bookings, 70% comes from live service revenue.

Weakness in their live service games such as FC 25 is the biggest cause for concern in their long term financial outlook.

Veilguard selling 1.5 million fewer copies than expected would only account for $30-40 million. They announced a forecast reduction from a range of $7.5 billion to $7.8 billion all the way down to $7 billion for their 2025 bookings forecast, a reduction of $500 to $800 million.

Veilguard would literally only account for 3-5% of that decline. The rest is due to their adjustments to FC franchise.

Don't think you guys realize how small a release like Veilguard is to EA's financial picture. They make over $5 billion per year on sports loot boxes. That is why investors are concerned.

[dolby]

i will take a word of a CEo over yours ...Yes it's not the only reason but it's there.

There is a reason they will close the studio and that is to please the investors. You do that to stop the bleeding and send a message to investors.

So stop downplaying this and deal with it. IT's a huge flop, it was written in starts years before it's release and we all knew it, some sooner than others.

Closing a studio is a big deal even for EA...

[Jayde]

You can read literally any financial website to see them say exactly what I am saying. This isn't rocket science, it's literally basic math.

If you think 1.5 million units for a $60 game makes a dent in EA's financials, I don't think you understand how huge $7 billion is.

Even the very first report of this by Jason Schreier stated
"EA pinned most of the blame on its soccer title, EA Sports FC 2025, which was released in September to mixed reviews. The company introduced a refresh this month."

This is simple numbers. Get out a calculator and check for yourself.

[bgray9054]

Adding a vid that I just saw discussing it more -

https://www.youtube.com/watch?v=7WM5EQ5bxG0

[Jayde]

Someone please get this guy a calculator. If anyone thinks Veilguard is the bulk of a $800 million bookings adjustment when it had a target shortfall of 1.5 million units then I truly weep for future generations.

Apparently Veilguard sells for $600 a unit. Who knew.

Or maybe it's because of the rest of the press release where they stated the bulk of the adjustment was due to live service sports titles, which is where EA makes 70% of their income.

Most finance articles on the topic aren't talking about Veilguard at all, because that's not why the stock is having issues.

https://finance.yahoo.com/news/electronic-arts-growth-questioned-analyst-185551482.html

Comments regarding Global Football contributing significantly to the $350 million – 450 million (BofAe) reduction in Live Services bookings suggest that FCUT likely saw a double-digit decline year-over-year, and management anticipates at least another quarter of continued decline.

According to the analyst, the reasons for this downturn remain unclear. Possible explanations include poor execution, seasonal impacts like holiday travel, or structural issues such as a saturated global player base.

Without FC as a key growth driver, the analyst finds it hard to see how EA can sustainably outperform the industry while improving its margins since FC contributes to around 60% of EA’s operating income, with Ultimate Team likely being one of its highest-margin games.

FC accounts for such a huge percentage of EA's revenue that such a major decline is a huge cause for concern of their business.

Veilguard's revenue is barely a rounding error in EA's overall revenue over its development timeline. It is almost entirely irrelevant to their stock price.

FIFA/FC is EA's golden goose. A $500-800 million reduction in revenue forecasts for the year for an ongoing revenue stream that has been growing for years is a huge red flag. That is why their stock is down. Nobody gives a crap about Veilguard on Wall Street. lol

[DemonicMMO]

Цитата допису mps:

EA has long been the most hated company in the world, I'd just like to see them tank so they don't destroy any more developers.

It beat out Nestle and others? Where can I find the survey/data where you got your info?

[pjedilord]

Цитата допису Navi:

Iunno. I went into Andromeda with the expectation of enjoying it and instead found myself completely disappointed in how they phoned in the main antagonist, reused a ton of their plot devices from prior titles, shortcutted the vast majority of world building, and removed choices while giving us four ways to say the same thing in every dialogue.

The combat and environmental traversal in Andromeda was an improvement, the story, world building, characters, and gameplay choices were all a large step backwards.

Many of the same flaws that carried over right into Anthem.

Female was best to play did best voice ?

[elgallifante]

Good news indeed. Hope this shuts up the shills

[nwad]

That's what happens when a game is marketed to a fringe minority.

[vkobe]

Цитата допису bgray9054:

Is this an investor reaction to the complete and utter failure of this game or unrelated?

dragon age+fifa 25

[vkobe]

Цитата допису bgray9054:

As a side question to EA / BioWare's recent failures, for anyone who may have more information - is there any hope for Mass Effect 5 or are we thinking they'll pump it full of ideological propaganda like Veilguard and wreck the IP for good (and likely their studio in the process)?

I loved the original trilogy (haven't played Andromeda, and don't plan to), and while it had some of what would currently be described as "woke elements", you could opt your way out of some (most?) of it...I think if they try to force the propaganda into it to any degree like companies have been doing it will likely bring about the end of the IP & BioWare...

i bet respawn will develop mass effect 5

bioware is gone in february, i think some bioware employees will join respawn, but bioware end in 2025, i dont see future for them after andromeda, anthem and dragon age v

electronic art closed westwood and maxis for less than that

[Sloths]

Цитата допису Jayde:

You can read literally any financial website to see them say exactly what I am saying. This isn't rocket science, it's literally basic math.

If you think 1.5 million units for a $60 game makes a dent in EA's financials, I don't think you understand how huge $7 billion is.

Even the very first report of this by Jason Schreier stated
"EA pinned most of the blame on its soccer title, EA Sports FC 2025, which was released in September to mixed reviews. The company introduced a refresh this month."

This is simple numbers. Get out a calculator and check for yourself.

It was one of the reasons why the stock dropped not the reason. 3 million was the expected sales not the sales needed to break even. Also the initial sales of the game weren't even at full price since it was on sale almost immediately. They lost hundreds of millions of dollars on it. Which is why the CEO listed them. A loss is a loss and never a good thing in business. Not to mention FC's loss was just a loss of growth which is still not a good look for a company vs Dragon Age not even being able to recoup the money they spent on it.

https://ir.ea.com/press-releases/press-release-details/2025/Electronic-Arts-Pre-Announces-Preliminary-Q3-FY25-Results/default.aspx

[Etagloc]

go woke go broke

[Shiro]

1.5m players means it includes free copies they gave with GPUs, Geforce Now and EA play. Its not sales ... Sales could be less than 1 milion.