Electronic Arts (EA) reported its Q4 2024 earnings and yielded a mixed outcome. The major points include a 5% workforce layoff, distinct decline year-over-year in the earnings and revenues. With variance in its Q4 revenue, EA differed from Wall Street's expectations. The board also announced a substantial $5 billion share buyback program.
Despite weak guidance and missing goals, EA projected an increase in their annual bookings, signalling a positive future trajectory. The gaming giant even noticed a record growth for its 'Madden NFL', while the company's 'Battlefield' entry is continuing despite player rejection. EA plans to incorporate ads into AAA games and punctuates on AI's role to positively metamorphose 50% of development process.
The company's plan also includes the audacious release of two unheard games this fiscal year. However, full-year sales guidance failed to meet the expectations, causing a temporary 5% dip in bookings. EA emphasized its commitment to innovation by featuring Musqueam Artwork in the imminent FIFA 23. The company's lifetime revenue of Apex Legends reached a significant milestone of $3.4 billion mark, bolstering its holdings.
Negative news encompass major layoff announcements and the cancellation of a highly-anticipated Star Wars game. However, EA also revealed the formation of its largest Battlefield team to build 'another tremendous live service'. They introduced EA SPORTS FC Tactical, an innovative mobile strategy game, in its continued efforts to expand its sports division.
Electronic Arts EA News Analytics from Thu, 13 Jul 2023 07:00:00 GMT to Wed, 08 May 2024 16:58:21 GMT - Rating -2 - Innovation 5 - Information 6 - Rumor 2
