(Reuters) – Electronic Arts Inc. (And others)(O) has delayed the release of the basketball game NBA Live to coincide with the launch of the new gaming consoles are released next year, the video game publisher said on Tuesday.
FILE PHOTO: Electronic Arts, Inc., – the logo will be displayed on a screen for a PlayStation 4, Pro launch event in New York City, united states of america, September 7, 2016. REUTERS/Brendan McDermid/
The equity shares of the company after the bell on better-than-expected results, fell by about 5% on the news of the delay.
Sony’s (6758.(T) of the next-generation PlayStation, “PS5”, and Microsoft Corp’s (MSFT.(O) for the Majority of Project Aid is expected to launch next year, during the holiday season.
“The new consoles are always an opportunity to make more innovation in our EA Sports games,” Chief Executive Officer Andrew Wilson said on a post-earnings conference call.
The delay will affect the EA’s full-year forecast for adjusted earnings that fell short of analysts ‘ expectations.
The company has also been affected by forex headwinds and delayed the launch of a VR-based version of the “Medal of Honor” for Oculus, the virtual reality company owned by Facebook Inc’s (FB.D), the company’s Chief Financial Officer Blake Jorgensen told Reuters.
“So the combination of those three things, it is about 100 plus million dollars, and that was on our increasing guidance for the full year,” Jorgensen added.
For the full year, EA’s adjusted expected revenues of approximately $5.13 billion, below estimates of $5.19 billion.
The stay was overshadowed with EA’s better-than-expected quarterly revenue, which was boosted by the success of this battle royale ” sensation “, the Apex of secrets”.
The company said that the strong growth in the all-new EA Sports titles, which includes the FIFA Ultimate Team, the Sims 4, life simulation franchise, has strengthened the live services are up by 39% in the quarter from a year earlier.
The beat comes at a time when a console-based game franchises, to compete with mobile, which is a free-to-play games and exciting formats, set against the dominance of traditional publishers like EA and EA’s rival Activision Blizzard’s (ATVI.(O) and Take-Two Interactive Software, Inc. (TTWO.D).
EA, the company behind franchises such as “FIFA” and “Battlefield” also expects the current quarter revenue above analysts estimates, boosted by the excitement around the upcoming launch of the “Star Wars to Jedi: the Cases Of” and “Need For Speed: most Heat.
The company expects that its adjusted revenue for the current quarter to be approximately $1.94 billion, edging past estimates of $1.93 billion, according to IBES data, Refinitiv.
The EA has been set for the launch of the new “Star Wars” in the title on Nov. 15, which follows the story of one of the last surviving Jedi. The promoter of the race series will have a new name on Feb.8, in which the first trailer has garnered over 8 million views.
On an adjusted basis, revenues increased by 4.5% to $1.28 billion, beating analysts ‘ expectations of $1.25 billion.
Report by Ayanti Berra in Bengaluru; Editing by shailesh Kuber