Electronic Arts (EA) is facing a financial crisis of epic proportions, with EA stock dropping nearly 20% after the company openly admitted that Dragon Age: The Veilguard and EA Sports FC 25 failed epicly. The fallout from these high-profile disasters has sent shockwaves through the gaming industry, with investors reacting swiftly and decisively to the company’s lowered revenue forecast for the fiscal year.
The sharp decline began earlier this week, with EA’s stock plunging on January 22 from $142.35 to $125.90 in a single day. Today, the bleeding continued, bottoming out at $116.29 before clawing back slightly to its current level of $118.58. These numbers represent a staggering blow to a company once seen as a pillar of stability in the gaming industry.
The EA Stock movement over the last five days – Google
EA’s current predicament was entirely avoidable, with many pointing to mismanagement at BioWare and the company’s broader embrace of diversity, equity, and inclusion (DEI) agendas as root causes of its struggles.
Dragon Age: The Veilguard, which was supposed to be a triumphant return for the beloved RPG franchise, has fallen well short of expectations. Despite projections that it would sell 3 million copies at release and a whoppint 10 million over its lifecycle, the game had only “engaged” 1.5 million players as of December 31, 2024.
The troubles don’t end there. EA Sports FC 25, the rebranded successor to EA’s FIFA franchise, has also underperformed. A crucial slowdown in sales over the Christmas season compounded the company’s financial woes, forcing it to adjust its annual revenue projections downward by hundreds of millions of dollars.
A screenshot from Dragon Age: The Veilguard (2024), BioWare
The situation at BioWare is particularly troubling. The studio, once renowned for masterpieces like Dragon Age: Origins, Jade Empire, and Mass Effect, is now seen as a shell of its former self. Meanwhile, insider reports from Smash JT and Grummz suggest BioWare’s Edmonton headquarters may be on the chopping block, with EA allegedly preparing to shutter the studio entirely as part of broader cost-cutting measures.
The Veilguard leaned heavily into progressive themes, a shift that alienated many longtime fans. Critics argue that the game prioritized political messaging over engaging gameplay and compelling storytelling, resulting in a product that failed to resonate with its core audience.
The steep decline of EA stock underscores a growing lack of confidence in EA’s leadership and long-term vision. While CEO Andrew Wilson has attempted to reassure investors by pointing to potential growth in fiscal year 2026, these promises feel like cold comfort in the face of the company’s current struggles.
A screenshot from Dragon Age: The Veilguard (2024), BioWare
EA’s reliance on live-service models, rebranding efforts, and a focus on identity politics appears to be eroding the goodwill it once enjoyed with players. The company’s strategy has not only alienated portions of its fanbase but has also failed to deliver the financial returns investors expect.
For now, EA is left scrambling to recover from the double blow dealt by Dragon Age: The Veilguard and EA Sports FC 25. The company’s updated revenue forecast for the fiscal year now sits between $7 billion and $7.15 billion, a sharp drop from its original projection of $7.5 billion to $7.8 billion.
As EA faces mounting pressure from investors and fans alike, the question remains: Will the company course-correct, or will it continue doubling down on the strategies that led to this collapse?
Are you surprised that the EA stock tanked in the wake of Veilguard’s failure? Sound off in the comments and let us know!
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“EA’s reliance on live-service models, rebranding efforts, and a focus on identity politics appears to be eroding the goodwill it once enjoyed with players.”
I’d ask, “What goodwill?” But the reality is a lot of people don’t pay attention to what these companies do and most don’t seem to care enough to do anything even after they learn. They still just consume product and get excited for the next product. That apathy is part of why MTX and paid loot boxes just won’t die, besides FOMO and gambling addictions respectively.
But it really does seem like Evil Actualized is facing some well-deserved karma this time. Here’s hoping it actually continues and this isn’t just market volatility.
The goodwill it ONCE enjoyed. I hear fantastic things about Dragon Age Origins, and I’ve had DA2 and DAI hyped to me, albeit not as much.
A lot of companies USED to have goodwill until we the fans noticed that they all had the same problems with the same root cause.
🎵Then it all crashes down
And you break your crown
And you point your finger
But there’s no one around!
Just want one thing
Just to be the king
But the castle’s crumbled
And you’re left with just a name
Where’s your crown, King Nothing? 🎵
EA deserve it. They are evil. They closed tons of great studios they absorbed, but keep Bioware alive to produce more woke garbage.
DEI is getting crushed and I’m loving evey minute of it.
Absolutely. I hope Trump gets it to point where companies that push it AT ALL are brought up on legal charges for racism, sexism, etc.
I think the only thing that surprised me about this stock drop is that it took this long. Sometimes it really seems like stock investors are some of the dumbest mfers on the planet – I mean heck, look at how long it took Ubisoft’s stock to fall off a cliff despite them constantly cranking out woke trash propaganda for literally years – deliberately pissing on their IPs.
Do I think they’ll course correct? Nope. I fully expect BioWare to screw up the next Mass Effect game, too – these devs need to read the effing room – people are done being tolerant of degenerate nonsense such as alphabet stuff, modern feminism, DEI and the like. It was our tolerance that got us here and people are realizing that and adjusting their spending habits accordingly.
Most investors don’t pay any real attention to the companies they’re invested in. To them they’re just acronyms on their portfolio sheets that don’t mean anything as long as they appear to be making a profit. It’s only when a company starts losing money that some even pay attention, and fewer try to look past the PR releases to explain why. Those that do and see the truth often just dump and run before the ship capsizes.
By the time the rest realize things aren’t going to get better, it’s already too late.
DEI destroys value, destroys everything it touches. Beware.