Electronic Arts 1999 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 1999 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 49

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49

EA works closely with world-class creative talent, including Sid Meier, whose Alpha
Centauri™ title we recently released to strong sales and widespread critical acclaim.
In fact, one leading industry publication, PC Gamer magazine, gave Alpha Centauri
a 98% rating, which ranks this title as the highest-quality product the magazine has
ever reviewed. To further improve our PC product line, we have steadily strength-
ened our internal development capabilities and acquired leading PC content studios.
Twenty months ago we acquired Maxis, and early in calendar 1999 we released
SimCity 3000™. Here again, critical response and initial sales have been extremely
positive, with this latest version of an industry classic topping the sales charts in
many markets for three consecutive months.
In fiscal 1999, we took several other important steps toward leadership on the
PC platform. We acquired Westwood Studios, one of our industry’s most successful
and respected studios. Westwood’s Lands of Lore™ and Command & Conquer™
series are genuine blockbuster franchises that have built large and loyal followings,
and we expect very strong consumer response to an upcoming release, Command
& Conquer: Tiberian Sun™.
We have also made an equity investment in Pixel Entertainment, a Tel Aviv–based
developer of military simulation technology for the PC. Pixel’s highly advanced
terrain-rendering engine makes flight simulations extraordinarily realistic, and it
promises to significantly enhance the graphic quality of our Jane’s®Combat
Simulation products.
Another avenue we are pursuing to build EA’s share of the PC market is online
content. Our revolutionary Ultima™ Online has proven the viability of persistent-
state, massively multiplayer Internet-based gaming. Ultima Online will soon surpass
125,000 paying customers, and we have added servers in Great Britain and Japan to
accommodate growing demand. We are now developing similar subscription-driven
online games, with a particular emphasis on deploying some of our EA SPORTS
franchises on pay-for-play web sites.
We are also using the Internet as a vehicle to market our products, build brand
equity, and develop deeper relationships with our customers. We have a large
number of popular sites for EA SPORTS enthusiasts offering game tips, updates
and user bulletin boards. These are rapidly becoming well-known destination sites —
in total, EA web sites receive more than 1 million unique visitors each month —
and we are building a deep database of registered users. This kind of experience
97 98 99
97 98 99
$365
$445
$526
Net Revenue
Per Employee
(In thousands)
$28
$35
$48
Net Income*
Per Employee
(In thousands)
* For 1999, net income (including one-time charges) per employee was $31 thousand. For 1998, net income (including
one-time items) per employee was $36 thousand.