02 February 2025

How to Lose $6 Billion in a Single Day

Well, not really one day. It took Electronic Arts years to piss off their customer base, and it took months for the market analysts to notice that they had alienated their customer base. It took one day for the market to respond.

Electronic Arts (EA) is, or at least was, one of the most successful video game companies ever. They had everything from John Madden Football and FIFA International Soccer to Dragon Age and The SIMS.

But they stopped caring about creativity, and started caring about microtransactions and The Message™. As a result, their customer base is starting to disappear.

Most recently they produced the Message Heavy™ Dragon Age: The Veilguard, which was more than a commercial flop, it is a laughing-stock.

The critical issue is the lack of revenue from FC 25, the current iteration of FIFA International Soccer. It failed to make its revenue projections, which was one of the issues leading to the stock plunge. The FIFA Football franchise has been one of their primary sources of revenue. Players are apparently done with the endless microtransactions, the expensive, yearly Downloadable Content (DLC) and the endless drain on their wallets, for not a lot in return.

On 22 January 2025, EA stock closed at $142.35 per share. The next day it closed at $118.58. I'm still drinking coffee as I type this, but that tells me, based on the current market capitalization, that Electronic Arts lost about six billion dollars in shareholder value. I'm sure that the market analysts have no clue as to what went wrong.

The embedded video is a bit long, but it is where most of this data comes from, or what inspired me to search for other data. Here is a shorter video from Smash JT: EXCLUSIVE INSIDER TELLS ALL! EA Stock In FREEFALL - BioWare’s Dragon Age: The Veilguard DISASTER!! That video is just short of 13 minutes.

This is the Legendary Drops video EA is falling apart before our very eyes. It is a long video at just shy of 35 minutes, but I think it shows what is going on with industry as a whole, and the downfall of AAA gaming. It seems to be similar to what is going on with movies.

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