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EA -1.8% amid reports ambitious 'Star Wars' game is canceled

Published 01/16/2019, 11:33 AM
© Reuters.  EA -1.8% amid reports ambitious 'Star Wars' game is canceled
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  • Electronic Arts (NASDAQ:EA) is off 1.8% after a Kotaku report that an open-world game based on Star Wars has been canceled.
  • The game, in development in Vancouver, was still in early stages but had been announced in 2017.
  • EA is now focused on a smaller-scale Star Wars project expected to come out in late 2020, sooner than the canceled game would have, according to the report.
  • Morgan Stanley (NYSE:MS)'s Brian Nowak says that's hurting the multiple that investors are willing to pay, following a "recent string of misexecution" out of the company. If EA can deliver a strong Jedi: Fall Order in 2020 along with two other hits, this might be a speed bump; but otherwise EA might not be able to retain Disney's contract at its 2024 expiration. (h/t Bloomberg)
  • Now read: IHS Markit +2.5% after double-digit revenue gains


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