EA shares drop 7% after company lowers guidance due to weakness in soccer, other games

Core Viewpoint - Electronic Arts (EA) has reduced its full-year bookings guidance due to underperformance in its soccer franchise, EA Sports FC, leading to a 7% drop in shares during extended trading [1][3]. Financial Performance - For the fiscal third quarter ending December 31, EA expects net bookings of approximately $2.215 billion, down from previous guidance of $2.4 billion to $2.55 billion [2]. - Revenue for the December quarter is projected to be around $1.88 billion, with diluted earnings per share of $1.11 [2]. - EA anticipates full fiscal year net bookings between $7 billion and $7.15 billion, a decrease from earlier guidance of $7.5 billion to $7.8 billion [3]. Game Performance - The soccer franchise, previously branded under FIFA, has shown weakness, with a noted slowdown in growth after two years of double-digit increases in net bookings [4]. - EA's role-playing game "Dragon Age" had 1.5 million players during the quarter, falling short of expectations by nearly 50% [4]. - The company expects Global Football sales to decline year-over-year and anticipates a decrease in bookings from online sales in fiscal 2025, primarily due to the soccer franchise's underperformance [4]. Recent Developments - EA recently updated FC 25 with new content and gameplay improvements, which received positive feedback from players [5].