By Zaheer Kachwala
(Reuters) -Electronic Arts forecast second-quarter net bookings below Wall Street expectations on Tuesday, pressured by uncertain consumer spending on its core sports portfolio amid a challenging economic environment.
With shifting U.S. trade policies threatening to push inflation higher, gamers have become more cautious with discretionary spending.
EA said the bookings forecast includes a four percentage point year-over-year headwind, due to changes in recognizing returns from the Ultimate Edition of “FC 26”, which will be booked in the third quarter.
Earlier this month, EA launched “College Football 26”, hoping to build on the success of last year’s edition, which became one of the best-selling titles of 2024.
However, analysts warned that growth comparisons for “College Football 26” may be challenging, given the breakout success of its predecessor, which revived the franchise after a more than 10-year hiatus.
The company said it expects a more “normalized curve” for College Football sales, partially offset by the launch of “Madden NFL 26”.
Its shares were up more than 1% in extended trading.
EA last week unveiled the first trailer for “Battlefield 6”, placing a big bet on the title to reinvigorate the franchise after the previous installment fell short of fan expectations.
“With Battlefield competing in the shooter category this year after not releasing a title for four years, we think Battlefield stands to benefit more than Call of Duty does in the back-half of 2025,” D.A. Davidson & Co analyst Wyatt Swanson said.
Battlefield competes with Activision Blizzard’s “Call of Duty” franchise, which has long-been the dominant player in the first-person shooter genre.
“Battlefield 6” is set to launch in EA’s current fiscal year with analysts expecting the game to sell millions of copies.
EA forecast second-quarter bookings of between $1.80 billion and $1.90 billion, below analysts’ expectations of $2.01 billion, according to data compiled by LSEG.
For the first quarter, EA reported bookings of $1.30 billion beating estimates of $1.29 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Tasim Zhaid)
