Saturday December 22, 2018

EA Stock Plummets by $21 Billion as Battlefield V Sales Disappoint

Electronic Arts is expecting additional estimate reductions and downward revenue revisions due to the poor sales of Battlefield V. While some allude to the hard-hit tech market, Seeking Alpha blames consumer backlash, as the FPS has been heavily criticized for portraying WWII inaccurately and having a limited campaign. YouTuber YongYea predicts EA will continue to "hemorrhage" loyal customers due to this fiasco, which is already scaring away investors.

Since peaking in July, shares of Electronics Arts (EA) have fallen over 45% and set a fresh 52 week low on Monday. Though the broader technology market has suffered in recent months, EA’s outsized declines are caused by concerns over unit sales of the company’s tent-pole Battlefield franchise. This year’s release, titled Battlefield V, suffered from consumer backlash as a less authentic portrayal of WWII was revealed over the summer.