Credit: Shutterstock photoShares of Electronic Arts ( EA ) fell Friday after the video game publisher halted in-game purchases for its new game "Star Wars Battlefront 2" in response to customer complaints.
Gamers complained that EA's microtransactions in the title, released Friday, amounted to a "pay-to-win" scheme. Reviewers said it was difficult to advance in the game without paying for upgrades.
But analysts said EA's decision to pause in-game purchases while it figures out a new strategy likely will hurt the moneymaking potential of "Star Wars Battlefront 2."
EA shares dropped 2.5% to close at 108.82 on the stock market today . EA had been forming a flat base over the past 11 weeks, but undercut the prior low in that pattern.
Bank of America Merrill Lynch analyst Justin Post predicted that the "Star Wars" game will disappoint investors.
"The escalation of EA concessions over the past month are a potential negative indicator of preorder sales trends and overall unit confidence," Post said in a report Friday. Still, he reiterated his buy rating on EA with a price target of 137.
IBD'S TAKE:Electronic Arts has an IBD Composite Rating of 90 out of 99, but it ranks No. 6 out of 13 stocks in IBD's Computer Software-Gaming industry group. To see which companies lead the group, visit the IBD Stock Checkup .
In recent weeks, gamers have flooded social media and community sites with negative posts about the game. Many said it was unfair for EA to charge $60 for the game and then give some users an unfair advantage if they pay more to unlock capabilities.
EA is taking the right step in suspending in-game transactions for "Star Wars Battlefront 2," but it could pinch the company's bottom line, Baird analyst Colin Sebastian said in a report.
"We believe the postponement of microtransactions has the potential to limit upside from the game, in particular if the pause lingers late into the quarter, or EA substantially reduces the opportunities for microtransactions," he said. Sebastian kept his outperform rating on EA with a price target of 130.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
