The cost of ELECTRONIC ARTS (EA) shares collapsed eight percent over the last week. The decline occurred after the FIFA creator postponed the release of video games Battlefield 2042 from October 22 to November 19, writes Forbes.
Battlefield 2042 exit delay did not like investors who hoped that the early release would lead to an increase in sales during the vacation season. Nevertheless, according to Trefis Machine Learning Engine, the average profitability of stocks (consisted of the growth rate of shares and dividends) EA will reach a 2.5 percent indicator during the next trading month. In addition, the company confirmed its forecast for the number of pre-orders for 2022, despite the delay in the release of the game.
The increase in the involvement of users of the video game after a sharp jump during the coronavirus pandemic slowed down, so the shares of gaming companies fell in general in the last months. Nevertheless, EA surpassed its American competitors with a decline of 2.17 percent over the past six months. Other companies lost more: Shares Take-Two Interactive (TTWO) fell by 14.31 percent, Activision Blizzard (ATVI) – 18.67 percent, Zynga – by 23.88 percent.
If the shares of American gaming companies fell from less demand for games, their Chinese competitors have encountered another problem – their shares entrusted Beijing’s policies. The government decided to limit the time on video games to persons under 18. According to the new rules, gaming platforms can allow their children only from 20 to 21 hours to Fridays, weekends and festive days. In addition, companies called on to refrain from participating in improper competition and focus on introducing innovation.