In gaming, few companies stand as tall as Electronic Arts (EA). Known for blockbusters like FIFA (now EA Sports FC), The Sims, and Madden NFL, they’re synonymous with high-profile franchises. But even giants can stumble, and EA’s falling revenue announcement is proof that success isn’t always guaranteed—even with a global fanbase.
I was a huge fan of the EAFC franchise, having started playing FIFA in 1997. This huge franchise stands atop when it comes to football simulators.
EA’s Falling Revenues: What We Can Learn from Their Recent Performance
Recently, EA lowered its financial guidance for the third quarter, citing weaker-than-expected sales in its flagship sports titles and other games. For a company whose annual sports releases are practically tradition for millions of players, this came as a surprise. Let’s break this down: what happened, what it means, and the lessons we can take away from it.
Lowering financial guidance” means a company is informing investors that they expect their future financial performance to be worse than previously anticipated, essentially indicating a decrease in projected revenue, earnings, or other key financial metrics, often due to perceived challenges or headwinds the company is facing, which can negatively impact its stock price.
The Numbers Don’t Always Tell the Full Story
EA’s sports titles are its bread and butter. Year after year, fans line up (digitally and physically) for the latest FIFA—or, as it’s now known, EA Sports FC. Yet, despite this loyal following, EA reported lower engagement levels than expected for the quarter. The numbers suggest that even long-standing franchises aren’t immune to shifts in consumer behavior. I can attest to this as one of the long-time fans of EAFC who didn’t purchase EAFC25 after a terrible experience with 24.
The company also admitted that some of their other big-name games underperformed. While they didn’t name specifics, it’s clear that expectations were high, and they didn’t quite hit the mark.
What’s Going On?
As a long-time player of FIFA and EAFC, I believe that this decline is finally a sign that the EA customer base is tired of poorly performing games. EAFC 24 was plagued with complaints about the game being buggy, no real changes to the offline modes, and a crazy (and obvious) pay-to-win model around the packs in their Ultimate Team game mode. Several fans took to social media to express how they likely wouldn’t be buying EAFC25 when it came out. I was one of them.
EAFC 25 was exactly as most fans expected. Mostly cosmetic changes and not much to make the gameplay more enjoyable. Streamers who exclusively stream EAFC suffered declining views with some big streamers even taking up secondary games because there just wasn’t that much interest in the game. Performance of the game and general public perception of EAFC 25 only improved after the release of Title Update #8 on the 15th of January 2025. This was so big that even sites like ESPN and Sports Illustrated reported on the changes. You can read about the changes in the official EAFC 25 Pitch Notes.
By missing out on multiple chances to listen to what the fans were saying about their experience in game, EA could have dug this hole for themselves. They already have a reputation for not listening to their gaming communities, especially in their sports titles and the cracks are starting to show.
Several other factors could explain EA’s falling revenues:
- The Shift in Gaming Trends: The gaming industry is increasingly leaning toward live-service games, indie titles, and more innovative gameplay experiences. While EA excels at polished, big-budget titles, they may not resonate with players seeking something fresh and different.
- Franchise Fatigue: Let’s be real—buying a new sports game every year with minimal changes can get old. Gamers might be sending a clear message: they want more innovation and less repetition.
- Economic Challenges: With inflation hitting pockets globally, gamers might be prioritizing their spending, skipping annual upgrades, or waiting for discounts.
- Market Competition: EA isn’t the only player in town. Rivals like Take-Two, Ubisoft, and Epic Games are all competing for attention with strong franchises and innovative releases.
Lessons for Businesses (Big or Small)
EA’s challenges highlight some universal truths about running a business, whether you’re managing a global corporation or a small startup:
- Never Get Too Comfortable: Even the biggest brands need to innovate. Resting on past successes is risky in fast-moving markets.
- Listen to Your Audience: Consumers will tell you what they want—directly or indirectly. If your product isn’t meeting expectations, it’s time to adjust. A big reason for EAs falling revenues can be attributed to this one item that has become their reputation.
- Adapt to Change: Industries evolve. Whether it’s live-service games in the gaming world or digital platforms in other industries, staying flexible is key.
The Bigger Picture
This stumble isn’t a death knell for EA. They still hold some of the most valuable franchises in gaming and have opportunities to bounce back. However, this serves as a reminder that no matter how established you are, you can’t take success for granted. Of course, shareholders were unhappy with EA’s falling revenues announcement, and the shares dropped by 7% but that won’t be the end of the story.
As consumers, this is a chance to reflect on what we value in games—and what we’re willing to support. For businesses, it’s a lesson in resilience and the importance of staying ahead of the curve.
So, as EA works to level up for the next quarter, let’s take this as a reminder to keep innovating. It’s important to push the boundaries—whether in gaming, business, or life.