Electronic Arts shares fell more than 15% on Thursday on an unexpected slowdown in spending on the football franchise that has shaped its gaming empire.
The video game maker launched its latest football game, FC 25, in September, the latest in a series of best-selling games. But this version wasn’t as warmly received as its predecessor, eroding revenue from EA’s largest source of revenue: its live services division.
Jefferies analysts said FC 25 received mixed reviews as players complained about a lack of new features and innovation, including in-game physics and goal-scoring mechanics.
The outspoken criticism led to a comprehensive update in January that “received overwhelmingly positive player feedback,” the analyst added.
However, EA on Wednesday lowered its annual revenue forecast due to poor early performance. It also expects a mid-single-digit decline in annual field service bookings.
Weak spending on the Dragon Age: Veiled Wardens role-playing game, which launched in October, also contributed to the cuts, as players stuck with proven titles amid economic uncertainty.
The move marks a shift for the company, which in October raised its annual bookings forecast and banked on strong performance of its American football games “Madden NFL” and “College Football.”
If losses continue, EA on Thursday is expected to lose nearly $6 billion (approximately Rs. 51,753 crore), with a market capitalization of $37.3 billion (approximately Rs. 3,21,684 crore). The stock trades at nearly 17 times its projected 12-month earnings estimates, compared with Take Two Interactive’s P/E ratio of 27.72 times.
EA makes money from the sale of its football games and from in-game player spending on services like “Ultimate Team,” in which people can use in-game currency to buy players for teams that compete online.
Wedbush Securities analyst Michael Pachter said EA FC typically has annual sales of about $2 billion (approximately Rs. 17,248 crore), of which field service revenue amounts to $800 million (approximately Rs. 6,901 crore).
The previous game in the series, FC 24, was one of the best-selling games of 2023, according to Circana, and it was launched after the end of a three-year partnership with FIFA in 2022, which ultimately led to the FIFA game being rebranded as FC.
MoffettNathanson analysts said: “Ultimate Team has been viewed as a near-Swiss clock for interactive media booking growth. If it stalls, it will put tremendous pressure on EA to fill the gap.”
© Thomson Reuters 2025
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