Electronic Arts misses bookings estimates as 'Battlefield' engagement falls

Electronic Arts Inc.
Take-Two Interactive Software, Inc.

Electronic Arts Inc.

EA

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Take-Two Interactive Software, Inc.

TTWO

0.00

May 5 (Reuters) - Videogame publisher Electronic Arts EA.O missed quarterly bookings estimates on Tuesday, weighed down by a post-launch drop-off in engagement for its "Battlefield" franchise and sluggishness in its mobile business.

  • While "Battlefield 6" enjoyed a strong launch late last year, the title has struggled with a slackening in player engagement, raising concerns about its long-term live-service revenue potential.

  • "Battlefield 6" has seen "significant attrition" in engagement with the "most-played" metrics on Xbox and PlayStation down from the third quarter, TD Cowen analysts said in a note last month.

  • EA reported fourth-quarter bookings of $1.86 billion, missing analysts' average estimate of $2.0 billion, according to data compiled by LSEG.

  • Profit rose to $461 million, compared with $254 million a year earlier.

  • The upcoming launch of Take-Two Interactive's TTWO.O "Grand Theft Auto VI" poses a threat to EA, as the biggest videogame launch of all time is likely to dominate player attention and discretionary spending.

  • EA is preparing to go private in an acquisition led by Saudi Arabia's Public Investment Fund, along with private equity firms Silver Lake and Affinity Partners for $55 billion.


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