Launch Delay Pressures Electronic Arts, Shares Pricey

Delays are inherent in the video game business and in this case create a slight deferral, not loss, of revenue.

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Electronic Arts Inc
(EA)

On Aug. 30,

While we don’t doubt that Battlefield V could benefit from more time to perfect its gameplay, we believe the core reason for the delay is a crowded release slate in October. Battlefield V’s original launch date of Oct. 20 is sandwiched between two highly anticipated games, Activision Blizzard’s Call of Duty: Black Ops 4 and Take-Two’s Red Dead Redemption 2. The latter title is a sequel to the 2010 Western shooter from Rockstar Games, which was one of the best-selling games of the previous console generation. We (along with many other analysts) expect RDR2 to be one of the top-selling games of 2018 as critic and fan excitement appears much higher for the title than competitors like Battlefield V.

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About the Author

Neil Macker, CFA

Senior Equity Analyst
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Neil Macker, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers media/entertainment and video game publishers.

Before joining Morningstar in 2014, Macker was a senior equity research associate for FBR & Co., where he covered the telecommunications services sector. Previously, he was an associate equity analyst for R.W. Baird and completed the summer associate rotational program at UBS Investment Bank. Before attending business school, Macker held analytical roles at Corporate Executive Board and Nextel.

Macker holds a bachelor’s degree from Carleton College, where he graduated cum laude, and a master’s degree in business administration from The Wharton School of the University of Pennsylvania. He also holds the Chartered Financial Analyst® designation.

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