Video game producer Electronic Arts (EA) has revealed its profits fell during the first quarter of the year, but claimed 2014 is going to be a better year for the company.
In the three months to the end of March, EA had an income of $323 million (£208 million), which is down 19 per cent on the same period a year ago.
EA claimed one of the reasons for the drop in its profits between January and March is because the next generation of consoles are being released soon and consumers are waiting for this rather than spending money on games now.
John Riccitiello, who had been chief executive since 2007, resigned from his post earlier in the year as a result of the falling share price of the firm.
Its latest major release, the new SimCity, has also been hit by a range of problems such as issues with servers that have led to frustration for gamers.
Despite the fall in profits, the positive outlook for 2014 led EA's share price to rise by almost 15 per cent in today's (May 8th) trading. Stocks were up by 2.73 per cent at 15:58 BST.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.