Electronic Arts (EA) stock plummeted today after the company provided investors with insight into the performance of Dragon Age: The Veilguard. According to the video game developer and publisher’s latest update, its Dragon Age segment engaged roughly 1.5 million players in Fiscal Q3 2025. That’s bad news for EA shareholders as it’s 50% lower than the company’s estimates.
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While the budget of Dragon Age: The Veilguard is unknown, it’s estimated to be around $250 million. Even if investors consider those 1.5 million engagements to be sales of the game at its full $70 price tag with EA seeing all the profits, that only comes to $105 million. That incredibly forgiving estimate is nowhere close to the game’s estimated budget.
Electronic Arts’ latest update saw it cut its net bookings outlook for Fiscal 2025 from $7.5 billion to $7.8 billion to between $7 billion and $7.15 billion. That news sent its stock spiraling 17.44% lower today, building on a 19.67% drop year-to-date. This comes amid a selloff as 5.74 million shares have traded today compared to a three-month daily average of 2.1 million units.
What Spurred Dragon Age: The Veilguard DEI Backlash?
Gamers weren’t happy with Dragon Age: The Veilguard as many pointed to the inclusion of diversity, equity, and inclusion (DEI) themes in the game. This sparked a backlash and controversy as players for and against DEI argued about its inclusion in the game.
Also, while Dragon Age may have engaged 1.5 million players, that’s an incredibly vague statement from Electronic Art. It’s unclear what of those are Veilguard sales versus plays through its subscription service. It also could include plays and sales of previous games in the series. Adding to that are reports that roughly 30,000 players refunded the game on Steam after being unsatisfied with their purchase.
The latest news from Electronic Art spurred a wave of analyst updates, including downgrades from BMO Capital, Raymond James, and Bank of America analysts, alongside a larger collection of price target cuts.
Is EA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Electronic Arts is Moderate Buy based on nine Buy and eight Hold ratings over the last three months. With that comes an average price target of $160.25, a high of $207, and a low of $130. This represents a potential 36.15% upside for EA shares.
