(Reuters) -Electronic Arts forecast net bookings below Wall Street expectations on Tuesday, pressured by uncertain consumer spending on its core sports portfolio amid a challenging economic
EA Projects Lower Quarterly Bookings Amid Cautious Gamer Spending
EA's Financial Forecast and Market Response
(Reuters) -Electronic Arts forecast net bookings below Wall Street expectations on Tuesday, pressured by uncertain consumer spending on its core sports portfolio amid a challenging economic environment.
Impact of Economic Conditions
Shares of the company fell more than 2% in extended trading.
Upcoming Game Releases and Expectations
With shifting U.S. trade policies threatening to push inflation higher, gamers have become more cautious with discretionary spending.
Analysts' Insights on Bookings
EA said the second-quarter bookings forecast includes a four percentage point year-over-year headwind , due to changes in recognizing returns from the Ultimate Edition of "FC 26", which will now be booked in the third quarter.
Earlier this month, the videogame publisher launched "College Football 26", hoping to build on the success of last year's edition, which became one of the best-selling titles of 2024.
However, analysts warned that growth comparisons for "College Football 26" may be challenging, given the breakout success of its predecessor, which revived the franchise after a more than 10-year hiatus.
The company said it expects a more "normalized curve" for College Football sales, partially offset by the launch of "Madden NFL 26".
EA last week unveiled the first trailer for "Battlefield 6, placing a big bet on the title to reinvigorate the franchise after the previous installment fell short of fan expectations.
The title is set to launch in EA's current fiscal year with analysts expecting the game to sell millions of copies.
EA forecast second-quarter bookings of between $1.80 billion and $1.90 billion, below analysts’ expectations of $2.01 billion, according to data compiled by LSEG.
For the first quarter, EA reported bookings of $1.30 billion beating estimates of $1.29 billion.
The Redwood city, California-based company reaffirmed its full-year bookings forecast.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zhaid)
