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EA's Share Price Falls As An Analyst Predicts The Microtransaction Controversy Will Hurt Sales

Cause and effect

Electronic Art’s share price has dropped 3.11% as the controversy over the in-game purchases continues to rumble on. A Bank of America Merrill Lynch analyst, Justin Post, predicts that EA may now struggle to meet their sales forecast of 14 million units for FY18.

“The escalation of EA concessions over the past month are a potential negative indicator of pre-order sales trends and overall unit confidence,” noted Justin. EA responded saying that the “change is not expected to have a material impact on EA’s fiscal year 2018 financial guidance.”

EA’s share price has dropped 7% overall in the last month but they’re up 42% over the whole year, so investors are probably not too worried yet. However, EA will be re-instating the in-game purchases at some point and investors will be paying close attention to the new implementation.

Source: CNBC / SEC

2 Comments
  1. coruscant
    Member
    Since: Oct 2010

    I was going to buy it at launch but the more I thought about it, especially with the lootbox controversy swirling, I’ve decided to hold off until it’s cheaper. This was also made easier by me not having particularly enjoyed the beta (apart from the space combat, which was much improved compared to I).

    Comment posted on 17/11/2017 at 20:02.
  2. Andrewww
    Member
    Since: Jan 2010

    Ha…! I predicted exactly thar a long while ago: http://www.thesixthaxis.com/2017/11/17/microtransactions-seem-to-have-been-removed-from-star-wars-battlefront-ii/

    Maybe I should go into giving trading advice and make loads of money from it..?

    Comment posted on 17/11/2017 at 22:30.

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