Electronic Arts forecasts annual bookings below estimates as gamers cut spending

Video game publisher Electronic Arts (EA.O) forecast full-year bookings below Wall Street estimates on Tuesday amid a broader spending slowdown in the gaming industry due to an uncertain economic outlook.

The company’s shares fell 2.5 per cent in extended trading.

EA also authorized a new three-year stock buyback plan totalling $5 billion.

“Issuing buybacks will help offset some of the negative sentiment on the short term, but game publishers should be working toward an upswing...