In recent years, the video-game industry looked like it had found the antidote to the boom-bust cycles that had long plagued the business.
The biggest names in games have stumbled this year as marquee titles flopped and online spending came up short.
Take-Two Interactive Software fell by a similar amount after forecasting sales this quarter that was US$100 million below Wall Street forecasts. The results are a reminder that video games are still a hit-driven business, rising and falling based on unpredictable consumers.
“The market is still healthy,” Chief Financial Officer Blake Jorgensen said in an interview. “The bad news, it’s very competitive.”
Electronic Arts’ latest Battlefield game was the biggest disappointment of the year, selling a million fewer copies than hoped, Jorgensen said. The company delayed the release by several weeks to correct some bugs, putting it in the thick of a competitive holiday season.