“EA’s Cautionary Tale: Navigating a Market Slowdown After Mixed Results from EA Sports FC and Dragon Age”
By EA has alerted investors to brace for a decline in performance ahead of its Q3 fiscal report after notable franchises EA Sports FC and Dragon Age failed to meet projections.
In a preliminary fiscal report, the company stated it had expected mid-single-digit growth in live service revenue, but is now forecasting a “mid-single-digit decline.”
The organization noted that its ‘Global Football’ sector (which includes FIFA alternative EA Sports FC) represents a significant portion of its revenue.
“Global Football had seen two consecutive fiscal years of double-digit growth in net bookings. However, the franchise has faced a slowdown, as the initial momentum in the fiscal third quarter did not extend to the end,” according to a statement for investors.
EA revealed that Dragon Age: The Veilguard also fell short of expectations, attracting approximately 1.5 million players during the quarter, nearly a 50 percent decrease from internal forecasts.
Consequently, EA now projects revenue of around $2.2 billion for the third fiscal quarter and between $7 billion and $7.2 billion for the 2025 fiscal year.
EA executives emphasize ‘long-term vision’ after major titles underperform
EA CEO Andrew Wilson expressed his confidence in the company’s long-term strategy but acknowledged that Dragon Age and EA Sports FC “did not perform to expectations.”
“During Q3, we continued to deliver high-quality games and experiences across our portfolio; however, Dragon Age and EA Sports FC 25 did not meet our revenue expectations,” added Wilson.
“This month, our teams provided a comprehensive gameplay update along with our annual Team of the Year update in FC 25; new player features and early results look promising. We remain confident in our long-term strategy and anticipate a return to growth in FY26 as we build towards our pipeline.”
EA CFO Stuart Canfield noted that the company continues to strike a balance between investing in future growth and maintaining operational discipline, indicating that EA plans to launch more of its “iconic franchises” as it approaches the next fiscal year.
Last year, EA demonstrated its commitment to operational discipline by investing $125 million to make 5 percent of its workforce redundant.
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