Video game publisher Electronic Arts‘s forecast fourth-quarter revenue above analysts’ estimates as it expects to gain from the launch of its mixed martial arts title, UFC 3, sending its shares up 6 percent in extended trading.
The third instalment of the successful franchise is set to release later this week and is expected to make up for the underwhelming response to the Star Wars game, which was launched during the holiday season.
EA forecast revenue of $1.23 billion (roughly Rs. 7,800 crores) for the current quarter, topping Wall Street’s expectations of $1.18 billion (roughly Rs. 7,500 crores).
“Many thought guidance would be lowered, and guidance was raised. That means nothing is wrong, and people were overly focused on Star Wars,” Wedbush Securities analyst Michael Pachter said.
The gaming community was outraged over the company’s pricing of in-game purchases for the Star Wars Battlefront 2 game, with many complaining that the option gave unfair advantage to the well-heeled.
EA has temporarily disabled micro-transactions following the backlash, which may have dented the popularity of the title.
“We sold fewer units than we thought in the quarter. We thought we would sell roughly eight million units, we sold just a little under one million units less than that,” Chief Financial Officer Blake Jorgensen told Reuters.
The company had indicated in the past that it expected the game to replicate the success of the previous version that sold over 14 million units in the fiscal year 2016.