Electronic Arts has admitted the failure of Dragon Age: The Veilguard, causing the company's share price to plummet rapidly
Electronic Arts has published a report for the third quarter of the current fiscal year (October-December 2024). In its document, the American publisher confirmed what is not a secret for analysts or gamers.
Here's What We Know
Electronic Arts recognised the failure of the release of the role-playing game Dragon Age: The Veilguard. The company reported that during this period sales of the game amounted to 1.5 million copies, while it was expected to sell the game to twice as many people.
EA Sports FC 25 and the Global Football franchise as a whole also performed below expectations, with a persistent decline in new player registrations for the first time in the last two financial years.
EA CEO Andrew Wilson noted that:
"In the third quarter, we continued to deliver high-quality games and user experiences across all of our projects; however, Dragon Age: The Veilguard and EA Sports FC 25 did not meet our sales expectations.
EA expects net revenue for the fiscal third quarter to be approximately $2.215 billion and for fiscal 2025, which ends 31 March 2025, between $7 and $7.150 billion (instead of the projected $7.5-7.8 billion).
Stock markets instantly reacted to Electronic Arts' published financial report and the company's share price fell by almost 19%, dropping to its lowest level in the last year, while EA's capitalisation fell by about $6 billion.
Electronic Arts share price. Source: Google Finance
Source: Electronic Arts, Google Finance
