Text size

Boom! That’s the sound of investors — and videogamers — firing cannonades of disapproval at Electronic Arts (EA) on Thursday morning, the shares falling some 8% on news of a four-week delay in the arrival of a much-anticipated game.

For Electronic Arts, the timing could be worse… but not much. “Battlefield V,” the latest installment in its popular war simulation series, will now arrive Nov. 20, with an executive citing “final adjustments to core gameplay” and the game’s live service.

Some analysts had already wondered whether “Battlefield” might be poised to deliver less-than-stellar results. So this may be adding insult to injury. Either way, while the game won’t miss the holiday season outright, Electronic Arts will take a hit.

Fiscal year 2019 (ending March) net bookings — a number the company uses to measure total physical and digital product and service sales — are expected to take a $235 million hit as a result of the move and scaled back expectations for its mobile business. That’s more than 4% clipped off the top.

In addition to “Battlefield” issues, the company also warned of $115 in lost bookings due to foreign exchange rates. EA didn’t update earnings guidance, saying it would do revisit the matter during its next quarterly conference call on Sept. 30.

Investors are sure to listen closely: Not only is the holiday season of perennial importance to the industry, but this particular season is set to feature big new games from key competitors, all of which are fighting for gamer time and dollars.

Newsletter Sign-up Barron's Tech A weekly guide to our best stories on technology, disruption, and the people and stocks in the middle of it all. PREVIEW

Activision Blizzard (ATVI) is updating the “Call of Duty” franchise that produced last year’s biggest game. Take-Two Interactive (TTWO) has generated substantial buzz around the western “Red Dead Redemption 2.” Those games are both scheduled for October. Meanwhile, the free-to-play, pay-for-doodads “Fortnite” continues to be a force.

As 2018’s end nears, the industry seems generally healthy, with players happy to spend on games, digital services and enhancements. The medium is showing sings of a breakthrough as a spectator sport. And cloud technology, as Barron’s Jack Hough noted in last week’s cover story, could offer access both to more gamers who carry powerful phones in their pockets but have been disinclined to buy consoles or game-minded PCs.

There’s lots to like about the industry. But missteps are still costly.

Email David Marino-Nachison at david.marino-nachison@barrons.com. Follow him at @marinonachison and follow Barron’s next at @barronsnext.