Take-Two, Electronic Arts Plunge on Fortnite Threat
- Red Dead maker provides forecast that’s short of analyst view
- EA upgrading Battlefield to include battle-royale mode
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Take-Two Interactive Software Inc. and Electronics Arts Inc. both tanked in U.S. trading after the video-game publishers posted disappointing numbers, yet another sign that the phenomenal success of Fortnite is looming large on the industry.
Take-Two, the maker of Grand Theft Auto, said revenue in the quarter ending in March will be $450 million to $500 million, when analysts anticipated $609.1 million. Its shares slumped as much as 14 percent, the most since December 2009, while Electronic Arts dropped 16 percent following a similar shortfall late Tuesday. Rivals Ubisoft Entertainment SA and Activision Blizzard Inc. also fell.