EA Stock Plummets 16% After Missing Sales Targets for 'FC 25' and 'Dragon Age: Dreadwolf'
2025-01-25 10:27:01Electronic Arts (EA) witnessed a sharp decline in its stock price this week, plummeting over 16% and losing $6 billion in market capitalization. This downturn followed a pre-earnings announcement revealing that sales figures for both 'FC 25' and 'Dragon Age: Dreadwolf' fell short of expectations.
On Wednesday, EA issued a warning to investors, revising its projected online service revenue for the fiscal year from growth to a decline. The company attributed this primarily to the “slowed performance” of 'FC 25' during the holiday season.
Furthermore, EA disclosed that 'Dragon Age: Dreadwolf,' the role-playing game developed by BioWare and released in October, attracted 1.5 million players, approximately 50% below projections.
Following this pre-earnings news, the publisher's market value tumbled by $6 billion, down from $37.3 billion as of Thursday. Reuters reports that the 'EA FC' franchise typically generates around $2 billion annually, with the 'Ultimate Team' mode contributing approximately $800 million.
Analysts at MoffettNathanson commented, “'Ultimate Team' was once viewed as a reliable engine for bookings growth in interactive media. If it stagnates, EA faces significant pressure to fill the void.”
EA stated that last week, 'EA Sports FC 25' received its most substantial mid-season gameplay update to date, incorporating numerous improvements highly requested by the player community.
'Dragon Age: Dreadwolf' launched in October for PS5, Xbox Series X/S, and PC. Earlier this month, the game's general manager, Corrine Busch, confirmed her departure from BioWare after receiving an “offer she couldn't refuse.”