| Electronic Arts sales forecast disappoints as gaming craze cools |
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Electronic Arts sales forecast disappoints as gaming craze cools
Electronic Arts on Tuesday (Aug 2) forecast quarterly adjusted sales below estimates as easing COVID-19 curbs cool the pandemic-era gaming rage by unlocking other avenues for entertainment.
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The video game publisher behind Apex Legends expects second-quarter adjusted sales between $1.73 billion and US$1.78 billion, compared with analysts' estimate of US$1.87 billion, according to Refinitiv IBES data.
'FX has become a little bit more of a headwind,' said Chief Financial Officer Chris Suh, adding that the strengthening of the US dollar would impact the third and fourth quarter.
Rival Activision Blizzard had also delivered a disappointing second quarter, while Sony Group Corp trimmed its annual profit forecast after its PlayStation business faltered.
US consumer spending on video games fell 11 per cent in June and is expected to decline 8.7 per cent in 2022 on growing recession concerns, supply snags and a lighter slate of releases, according to analytics firm NPD.
EA's first-quarter adjusted sales of US$1.3 billion was lower than last year's, but still beat Wall Street targets thanks to the popular 'FIFA' franchise and the recent launch of 'F1'.
Suh also said the company was not 'completely immune' to rising inflation.
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