Video games

EA takes $3 billion drop in stock value

This hit on Wall Street has been a mighty one

In what has been one of the worse received releases in gaming history, the reaction to Star Wars Battlefront 2 continues to grow detrimental for publisher Electronic Arts. According to a recent article by CNBC, EA has suffered a major loss of $3 billion in loss stock value.

Via – CNBC

EA’s stock is down 8.5 percent month to date through Tuesday compared with the S&P 500’s 2 percent gain, wiping out $3.1 billion of shareholder value. Its competitors Take-Two and Activision Blizzardshares are up 5 percent and 0.7 percent respectively during the same time period.

CNBC – Tae Kim

Furthermore, loot boxes and microtransactions now have a even more uncertain future as fear grows among active video game stock owners, now that government officials around the world have begun to take a closer look at what many are labeling “predatory gambling mechanics in video games”.

While many video game pundits were previously attesting that this would likely blow over for EA, a heavy hit to a big publisher’s pocket like this will probably strike a grander form of industry conversation.

Change might still take a bit more time though…

(Source – CNBC)

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