Electronic Arts forecasts weak bookings as competition, lower spending weigh

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-Videogame publisher Electronic Arts forecast quarterly net bookings below expectations and missed estimates for the first quarter on Tuesday, hurt by high competition and muted spending by gamers, sending its shares down 3% after the bell. Videogame publishers such as EA are not only struggling with slowing spending, but also fighting for top spots with new entrants like Warner Bros Discovery, whose "Harry Potter"-based game "Hogwarts Legacy" was among the best-selling games in May, according to market research firm Circana. Elevated inflation has forced gamers to get picky with the titles they choose to play, with many returning to their favorite franchises because of tight budgets. EA forecast net bookings in the range $1.70 billion to $1.80 billion for its quarter ending Sept. 30, below analysts' estimate of $1.81 billion, according to Refinitiv data. In the first quarter, the company posted net bookings of $1.58 billion, compared with Refinitiv estimates of $1.59 billion. EA's performance was partially supported by "Star Wars Jedi: Survivor", the latest videogame based on the storied Star Wars franchise it launched in April. The Star Wars game and "FIFA 23" were the number 3 and number 7, respectively, in the top 20 best-selling video games in May, according to Circana. The company, which kept its fiscal 2024 booking forecast intact, expects to debut in September EA Sports FC, EA's new football franchise after it ended its partnership with FIFA last year. (Reporting by Yuvraj Malik in Bengaluru; Editing by Pooja Desai)