Electronic Arts 2001 Annual Report Download - page 11

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E L E C T R O N I C A R T S
9
On October 5, 2000, EA.com went live with 30 games, ranging from action and adventure to sports, card s ,
puzzles and trivia. In Febru a ry, EA.com acquired Pogo Corporation, which added a compatible array of quick-
access games and 17 million re g i s t e red members. EA.com quickly became the “stickiest” site on the web, with
t r a f fic that rivals some of the most popular destinations on the entire Internet. By the end of March, EA.com
had the most minutes per user per day on the whole Intern e t .
We are off to a great start to be the number one company in this new channel of gaming. Revenue will
come from rich subscription products and advertising. We offer popular, quick-access content that is free and
generates revenue from advertising. The high-volume traffic generated on this model provides good pro m o-
tional exposure for our core offering, rich-content sold in monthly subscriptions.
If this was a baseball game, we’d still be in the first inning – but we’re about to get our first turn at bat.
EA.com is about to launch one of the most anticipated games in history: M a j e s t ic – a gro u n d - b reaking form of
e n t e rtainment that calls on players to use the Net to save the lives of three people trapped in a conspiracy.
Each month, as players finish an episode, another is introduced. Development costs for M a j e s t i c a re re l a t i v e l y
l o w , when scaled across a volume of subscriptions.
Also coming to EA.com are a series of persistent worlds that provide consumers with a bro a d b a n d - q u a l i t y
game experience in a narrow-band environment. Consumers start with EA software that is easily loaded onto
a PC. They connect to EA.com for a second stream of data that completes the rich worlds, community and
content to the data already provided on the disc. When scaled, revenue from the retail sale of the software ,
combined with the monthly subscriptions, provide strong margins.
EA pioneered this genre with our popular medieval fantasy, Ultima Online
™
. On a similar format we’re
developing Motor City Online for people who like to build and race cars; a space-based fantasy called E a rth and
B e y o n d and another persistent world based on the most popular PC game in EA history: The Sims Online. We
also offer subscription content based on the most powerfully branded trademark in video gaming: EA SPORTS.
At EA.com, we believe these rich-content offerings are the “killer applications” that will usher the traffic ,
the subscriptions and the revenue that will lead our site to pro fit a b i l i t y.
EXTENDING EA LEADERSHIP INTO A NEW CHANNEL OF GAMING