# EA lowers bookings expectation on strong dollar, gaming slowdown Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-02 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Electronic Arts Inc. Lowers Annual Forecast Amid Gaming Meta Description: Get the latest on Electronic Arts Inc's lowered annual bookings forecast and struggles in the gaming industry due to the U.S. dollar surge and industry URL: https://financedigest.com/ea-lowers-bookings-expectation-on-strong-dollar-gaming-slowdownhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-01t200719z1lynxmpeia01p8rtroptp4electronic-arts-results-1736814935832-compressed.jpg) By Tiyashi Datta and Aditya Soni (Reuters) -Electronic Arts Inc lowered its annual bookings forecast on Tuesday as the publisher of “FIFA” and “Apex Legends” struggles with this year’s surge in the U.S. dollar and a [gaming industry](https://www.financedigest.com/advertys-multi-patented-and-industry-leading-in-game-viewability-technology-brainimpression-now-available-within-oracle-moat.html "Adverty’s Multi-patented and Industry-leading In-game Viewability Technology BrainImpression™ Now Available Within Oracle Moat") slowdown from pandemic heights. The [company now expects](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") annual bookings – an indicator of future revenue – between $7.65 billion and $7.85 billion, compared with $7.90 billion to $8.10 billion earlier. After a meteoric rise during the pandemic, videogame sales have been easing this year due to a lack of major releases and [lower spending by consumers facing decades-high inflation](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook"). That, coupled with the industry’s prolonged supply-chain challenges, also pressured [quarterly revenue](https://www.financedigest.com/wework-rival-iwg-quarterly-revenue-dips-on-prolonged-pandemic-impact.html "WeWork rival IWG quarterly revenue dips on prolonged pandemic impact") from Sony Corp’s PlayStation 5 and Microsoft Corp’s Xbox content and services. Overall, the gaming market is expected to grow just 2% in 2022, according to [data from research firm](https://www.financedigest.com/dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes.html "Dollar firms after U.S. labor data suggests more rate hikes") Newzoo, a far cry from 2020’s 23% jump. A near [17% rise](https://www.financedigest.com/tods-sales-rise-17-in-first-half-of-year.html "Tod’s sales rise 17% in first half of year") in the U.S. dollar this year has also stifled growth, with EA [forecasting a roughly $200 million hit to annual bookings](https://www.financedigest.com/publisher-bloomsbury-casts-upbeat-forecast-says-books-affordable-pastime.html "Publisher Bloomsbury casts upbeat forecast, says books ‘affordable pastime’"). The [company earns more than half of its revenue from outside the United States](https://www.financedigest.com/australian-state-balks-at-energy-companys-request-for-help-with-lng-import-terminal.html "Australian state balks at energy company’s request for help with LNG import terminal"). Wedbush Securities analyst Michael Pachter said [“poor mobile](https://www.financedigest.com/feature-africas-mobile-money-taxes-risk-driving-poor-out-of-digital-economy.html "FEATURE-Africa’s mobile money taxes risk driving poor out of digital economy") execution” was also a concern. They haven’t efficiently integrated their big [mobile acquisitions and bought games](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") that were in decline when they closed Glu, Codemasters and Playdemic. EA had no major releases for most of the year, but it could get some [support from the October launch](https://www.financedigest.com/netflix-ad-supported-plan-to-launch-in-november-at-7-a-month.html "Netflix ad-supported plan to launch in November at a month") of “FIFA 23″ – the latest installment in its popular soccer franchise. FIFA 23” had the best launch week of any game in the series and it looks set for more demand thanks to the soccer [World Cup](https://www.financedigest.com/soccer-englands-houghton-will-keep-knocking-the-door-for-the-world-cup.html "Soccer-England’s Houghton will keep ‘knocking the door’ for the World Cup") in Qatar next month. EA’s second-quarter adjusted [sales of $1.75 billion was slightly higher](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices") than analysts’ estimates, according to Refinitiv data. Its adjusted [profit also beat expectations](https://www.financedigest.com/portuguese-airline-tap-swings-to-profit-earlier-than-expected.html "Portuguese airline TAP swings to profit earlier than expected"). (Reporting by Tiyashi Datta and Aditya Soni in Bengaluru; Editing by Devika Syamnath) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---