The gaming industry is in a split with this quarter’s reports.
Roblox (RBLX)'s earnings have fallen below expectations as its bookings dropped 3% to $631.2m. Its stock dropped by 10% as a result, even though overall revenue increased to $537.1 million (a 39% increase YoY).
In brighter news, popular Battle Royale creator Electronic Arts (EA) posted better-than-expected revenues. Banking off its Apex Legends, Sims 4, and EA Sports games like FIFA Ultimate Team, the California-based video game company hit $1.2b in revenues (a 4.5% increase). The console-based game franchise highlighted its wins against mobile-based, free-to-play games.
Why it matters
Who's winning the gaming industry? As demand grows, console makers, Sony and Nintendo warn of an impending chip shortage with “no end in sight”.