Electronic Arts (EA) lowered its annual bookings forecast on Tuesday as the FIFA and Apex Legends publisher grapples with the surging US dollar this year and the gaming industry’s slowdown from pandemic highs. . The company now expects annual bookings – an indicator of future revenue – between $7.65 billion (about Rs. 63,280 crore) and $7.85 billion (about Rs. 64,930 crore), down from 7 $.90 billion (about Rs. 65,350 crore) to $8.10 billion (about Rs. 67,000 crore) earlier.
After a meteoric rise during the pandemic, video game sales have slowed this year due to a lack of major releases and a drop in spending by consumers who have faced high inflation for decades.
That, coupled with protracted industry supply chain challenges, also put pressure on quarterly revenue from Sony’s PlayStation 5 and Microsoft’s Xbox content and services.
Overall, the games market is expected to grow just 2% in 2022, according to data from research firm Newzoo, a far cry from 2020’s 23% jump.
A nearly 17% rise in the US dollar this year has also stifled growth, with EA predicting an impact of around $200 million (about Rs 1,650 crore) on annual bookings. The company generates more than half of its revenue outside the United States. But EA, which hasn’t had any major releases in the first three quarters of 2022, could get some support from the October launch of FIFA 23 – the latest installment in its popular football franchise.
FIFA 23 had the best launch week of any game in the series, and demand is expected to increase thanks to the FIFA World Cup in Qatar next month. EA reported adjusted sales of $1.75 billion (about Rs 14,475 crore) in the second quarter, missing the $1.80 billion (about Rs 14,890 crore) expected by analysts, according to data from Refinitiv.
Net profit rose to $299 million (about Rs.2,470 crore), or $1.07 per share, from $294 million (about Rs.2,430 crore), or $1.02 (about Rs.85 ) per share, a year earlier.
© Thomson Reuters 2022
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