Electronic Arts

Gaming firm Electronic Arts just today announced it’s revising its net bookings outlook for fiscal year 2019 driven by an update to its Battlefield™ V launch date with the new title’s release being delayed to the 20th of November impacting its full year guidance with foreign exchange rates and a revised mobile forecast playing a part in this change.

EA’s stock dropped by as much as 9.7% as of trading on Thursday in reaction to this news as investors and Wall Street analysts respond to this change highlighting issues for gaming companies as they aim to keep up with mega titles like the current craze Fortnite which has taken the world by storm and has already grossed over $1.2 Billion in revenue since its last year July release.

“We believe we’ve got one of the best Battlefield games ever coming in Battlefield V,” said Laura Miele, Chief Studios Officer, Electronic Arts. “Tens of thousands of players have been hands on with the game so far, and we’ve been honored to receive best multiplayer awards at E3 and Gamescom. We’ve had valuable feedback from our community, and we’re going to take the time to make some final adjustments and deliver a great experience for our fans.”

“We’re updating our fiscal year guidance to reflect the updated launch date for Battlefield V, the ongoing impact of foreign exchange rate changes, and our current outlook for our mobile business,” said COO and CFO Blake Jorgensen. “Our core businesses, including FIFA Ultimate Team, are strong, we think our players are going to love Battlefield V, and excitement is building for our new IP, Anthem.”

According to EA, moving the launch of the upcoming title by four weeks stands to deliver the best possible experience for gamers even as it affects net bookings from its fiscal year guidance.

EA has updated its 2019 net bookings estimates from $5.55 Billion to a lower price of $5.20 Billion with about $115 million of this change related to movement in foreign exchange rates as per its report.

Even as the Redwood based company maintains R&D spending, It’s also making some operational savings to its expenses estimated to be around $50 million excluding foreign exchanged impacts and stock based compensation as stated by the company.

The gaming firm is expected to announce its fiscal Q2 earnings on the 30th of October with a conference call set for 2:00 pm PT (5:00 pm ET) on that date to discuss the results.

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