Perhaps the stock price rose too quickly. Electronic Arts (NASDAQ: EA) is now on a never-ending downtrend that accelerated after a shooting at a Madden NFL 19 tournament in Jacksonville. Although the cancellation of the event and those in the future could hurt sales, Battlefield V’s delayed release by four weeks is a concern.
EA announced it would delay its Battlefield V release on Aug. 30. It also lowered its FY19 bookings guidance sharply lower, from $5.55 billion to $5.2 billion. Second-quarter guidance is still $0.48 EPS and $1.16 in net bookings. Markets panicked over the game delay, which now gets a November 20 launch date. But the long-term impact on the negative news is typically temporary. That assumes the game content, playability, and receptiveness from gamers are positive.
The near-term risk of Battlefield is its positioning in the game market. Call of Duty Black Ops and Red Dead Redemption are both getting released that same month, putting EA’s title in the middle. With game titles so expensive these days, there is not enough money to spread the spending among those three titles.
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Activision (NASDAQ: ATVI) bounced higher in recent sessions and its uptrend is intact. Take-Two Interactive (NASDAQ: TTWO) closed near yearly highs.
