EA shares plummeted 17% on Thursday after the company confirmed it significantly missed revenue targets for its most recent financial quarter. [Image: Shutterstock.com]

Electronic Arts Inc. shares fell nearly 17% on Thursday after the company issued a preliminary results statement stating that its earnings would be lower than previously stated, largely due to two poorly performing games. This was the company’s biggest stock price drop since the 2008 financial crash.

EA said that bookings for the quarter ending December 31, 2024, were $2.22bn, significantly lower than the $2.4bn–$2.5bn forecasts. It also dropped its forward-looking bookings for the 2025 fiscal year from up to $7.8bn to a max of $7.15bn.

follow-on revenue from game purchases fell significantly

A big reason for the drop is that follow-on revenue from game purchases fell significantly. The performance of EA Sports FC 2025 is the big culprit, as it has underwhelmed since launching in September. This was the third edition since EA departed from its long-running arrangement with FIFA to release the iconic soccer game. The two parties disagreed over licensing fees, which led to EA developing its standalone title.

Another game that disappointed was Dragon Age: The Veilguard, a role-playing title that only got in the hands of about 1.5 million players during the most recent quarter, half the expectation.

Despite the concerning figures, EA Chief Executive Officer Andrew Wilson said that the company believes in its long-term approach and expects growth to return in the 2026 fiscal year.