Electronic Arts Inc., the multi-billion dollar company behind many of the world’s top selling games, recently took a big hit in the stock market. Now it would appear that the company may soon reach a ten year low concerning the matter.
As reported by Market Watch, EA’s shares (-13.43%) plunged by an estimated 10 percent on Tuesday following missed sales expectations. EA’s stock has reportedly fallen a total 24 percent within the past year. If EA’s stock continues to decline through today, the company will experience its largest single-day percentage decline since Dec. 17, 1999.
EA Chief Executive Andrew Wilson has gone on to claim that the company faced “significant challenges” within the fiscal third quarter of the year that would continue through the fourth quarter.
Battlefield V has drawn much of the blame. The title reportedly sold a grand 1 million fewer copies than EA executives had anticipated. The game failed to offer a battle royal mode, as is becoming more and more popular within the industry. Beyond that, the game was delayed for release. Ultimately, Battlefield V was met with stiff competition from Red Dead Redemption 2, Assassin’s Creed: Odyssey and Call of Duty: Black Ops 4. As reported by Market Watch, Wilson recently offered a statement concerning the matter.
“As a result of these decisions, we struggled to gain momentum and did not meet expectations for the quarter,” Wilson said. “We made some calculated decisions that did not work as planned in Q3 and we did not execute well in other areas of our business. Against the backdrop of a very competitive quarter, the combination of those factors led to our underperformance.”
Electronic Arts holds a largely dominant place within the realm of sports games. The company is responsible for using properties such as FIFA, Madden, NBA Live and the UFC. Beyond that, EA publishes hit series such as Dragon Age, The Sims, Mass Effect, Need For Speed and Titanfall. EA holds a place within the top three largest publishers within the gaming industry, among Activision Blizzard and Take-Two Interactive.
Of course, EA has not gone without its controversy. Back in 2012 and 2013, EA was voted “Worst Company in America” by The Consumerist. Among those trailing behind EA in the votes were massive oil companies and big banks.
More recently, the release of Star Wars Battlefront II was met with controversy. The game featured a heavy dose of monetization. The backlash largely came from the inclusion of loot boxes, a practice considered gambling to some lawmakers.
EA has faced a bevy of criticisms over the years. However, it would appear that the massive company is now facing challenges in the stock market.