- Electronic Arts and Take-Two Interactive delivered disappointing sales forecasts amid stiff competition from the likes of Fortnite, developed by Epic Games.
- Shares of the video-game makers have tumbled
The biggest names in video games have stumbled this year as big releases flopped and online spending came up short. Revenue figures have disappointed investors as Electronic Arts (NASDAQ:EA) disclosed that some of its top productions – including its latest Battlefield title – had come below expectations.
Take-Two (NASDAQ:TTWO) has seen shares fall over 20% over last 6 months after forecasting sales that were $100 million below Wall Street forecasts. Activision Blizzard (NASDAQ:ATVI) is down 48% from its October high, and had underwhelming numbers for Destiny 2 and an expansion of that shooting game.
The results are a reminder that video-games are a hit-driven business, rising and falling based on unpredictable consumers. A wildcard competitor like Fortnite, developed by Epic Games and partly owned by Chinese Tencent, could pose huge issues for large video-game makers.