EA shares plunge 19%, on track for worst day since dot-com bubble

Core Viewpoint - Electronic Arts (EA) announced a workforce reduction of 6% and lowered its full-year bookings guidance, primarily due to challenges with its soccer franchise, leading to a significant drop in its stock price [1][2]. 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 [3]. - Revenue for the December quarter was reported at about $1.88 billion, with diluted earnings per share of $1.11 [3]. - EA anticipates full fiscal year net bookings between $7 billion and $7.15 billion, a decrease from prior guidance of $7.5 billion to $7.8 billion [4]. Product Performance - The company's soccer franchise, which transitioned from FIFA branding to EA Sports FC, has shown significant weakness, impacting overall performance [4]. - The role-playing game "Dragon Age" had 1.5 million players during the quarter, approximately 50% below expectations [5]. - EA expects Global Football sales to decline year-over-year and anticipates a decrease in bookings from online sales in fiscal 2025, with the soccer franchise being a major contributor to the shortfall [5].