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EA stock reaches all-time high ahead of Battlefront II loot box return

Company's stock rose 7%, peaking at $131 following recent financial results

Electronic Arts may be disappointed with the sales of Star Wars Battlefront II, but its investors remain optimistic about the company's fortunes.

GameSpot reports that the publisher's stock price reached an all-time high yesterday following the release of its most recent financial results. It rose by just under seven per cent (6.96 per cent to be exact) over the course of the day, which is equal to $8.26 per share.

The price peaked at $131, before settling at $126.96 per share.

The surge was triggered by EA's latest financial results, in which revenues for the third quarter came in at $1.16bn. The company forecast revenues of $5.1bn by the end of the financial year, with profits of $1.015bn.

It is also believed that the publisher's announcement that loot boxes and microtransactions will soon be reintroduced to Star Wars Battlefront II. While the game's sales fell short of expectations at just 7m copies, investors remain optimistic about the potential for long-term revenue from the game.

The monetisation model for Battlefront II was dropped just 24 hours before launch following consumer backlash over how a beta version of the loot box system hindered progression. Prior to this, EA had been confident it would form a long-running revenue stream.

Other causes for investor excitement may have included the announcement of a new Battlefield game for October, and the ongoing success of its annual sports franchises such as FIFA and Madden.

Electronic Arts posted a total loss of $186 for the quarter, although $176 of this was a tax expense centred around the recent introduction of the Tax Cuts and Jobs Act.

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Latest comments (3)

James Butterworth SuperGeek - IT Hardware & Software 8 months ago
Typical scummy investors. They don't care about the games, only the dolla. It's the investors and the rabid EA fanboys that keep Electronic Arse in business.
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Ian Griffiths Product Owner, Hutch8 months ago
@James Butterworth: Actually I think it's making content that people enjoy that keep them in business.

What is it about EA's games that you don't like? They've got incredible series and try new stuff all the time. They put in some entirely optional loot boxes in a lightly asymmetrical and somewhat unfair online shooter, it's not the best design but I don't get why it's such a big deal. If you don't want them, don't buy them. There are literally thousands of other games released every year for people to enjoy instead.
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Klaus Preisinger Freelance Writing 8 months ago
Here is a way to look at it as an investor:
The Last Jedi revenue is down 30%, Battlefront sales are down 30%. It is the franchise, nothing else. Look at how the Han Solo movie is currently thrown under the bus. Star Wars is not the next Marvel CU with three billion Dollar movies per year, back to the drawing board.

Here is a way to look at it as a player:
If I get shot in the face in Overwatch (not that I play that much), I at least do not have to second guess my decision not to buy loot boxes. Which is strange, since there is another EA game where I also do not second guess myself upon conceding a goal. While just as every bit intrusive, Ultimate Team is just not enforced in the same way it is in Battlefront.

My Personal View:
I like some of the progress games. But that still does not mean I understand why I should suffer through slow and unexciting gameplay for hours to unlock the alleged fun part of the game. When turning on the Grand Tour, there is no season's worth of boring reviews of small compact cars I am forced to watch until the Amazon app allows me to watch episodes featuring fast cars and crazy adventures. Is working your way up the ladder so ingrained in people that they cannot even disconnect from it when they seek to be entertained?
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