Electronic Arts 2001 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2001 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 72

  • 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
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

ELECTRONIC ARTS
15
• Offset by a 21% increase in PC revenues due to the shipment of key releases including Command & Conquer:
Red Alert 2 and The Sims: Livin’ Large and continued strong catalog sales of The Sims.
International Net Revenues
The decrease in international net revenues for fiscal 2001 compared to fiscal 2000 was
attributable to the following:
• Europe’s net revenues decreased 21% primarily due to the console transition, lower AL sales due to product
release slips and fewer hit titles released in the current year, lower PC sales with fewer titles shipping in the
period, the strong sales of Command & Conquer: Tiberian Sun
™
for the PC in the comparable prior year period,
and weakness in the Euro currency. In addition, PlayStation revenues decreased 43% due to fewer titles shipping
during the console transition period with most franchise titles showing significant decreases from the prior
year releases. PlayStation 2 revenues did not offset the decrease in PlayStation revenues due to fewer hardware
units reaching the market and the weighting of titles specifically appropriate for the North American market
rather than the European market.
• Asia Pacific’s net revenues decreased 4%, mainly due to the decrease in PlayStation revenues as there were no
significant new titles released in the current year. This was offset by sales of PlayStation 2 titles such as SSX and
FIFA 2001.
• Offset by Japan’s net revenues which increased 58% compared to the prior year primarily due to the shipment of
PlayStation 2 titles such as FIFA Soccer World Championship, FIFA 2001 and SSX.
Information about our net revenues by product line for fiscal 2001 and 2000 is presented below (in thousands):
Increase/
2001 2000 (Decrease) % Change
EA STUDIO:
PC $ 408,454 $ 397,777 $ 10,677 2.7 %
PlayStation 309,988 586,821 (276,833) (47.2 %)
PlayStation 2 258,988 – 258,988 N/A
N64 67,044 120,415 (53,371) (44.3 %)
Online Subscriptions 28,878 16,771 12,107 72.2 %
License, OEM and Other 20,468 22,894 (2,426) (10.6 %)
Advertising 6,175 – 6,175 N/A
1,099,995 1,144,678 (44,683) (3.9 %)
AFFILIATED LABEL: 222,278 275,333 (53,055) (19.3 %)
Consolidated Net Revenues $ 1,322,273 $ 1,420,011 $ (97,738) (6.9 %)
Personal Computer Product Net Revenues
The increase in sales of PC products for fiscal 2001 was primarily attrib-
utable to the continued strong sales of The Sims, which shipped in the prior year. Key current year releases were
Command & Conquer: Red Alert 2 and The Sims: Livin’ Large. We released 20 PC titles in fiscal 2001 compared to 31
titles in fiscal 2000. The Sims continues to be the number one PC title and has now sold over 4 million copies. Due
to the sales of The Sims in fiscal 2001, we expect revenues from PC products to be flat or lower in fiscal 2002.
PlayStation Product Net Revenues
We released 17 PlayStation titles in fiscal 2001 compared to 30 in fiscal 2000. As
expected, PlayStation sales decreased for fiscal 2001 compared to the prior year primarily attributable to the
PlayStation 2 platform transition. With the exception of Madden NFL, all of our franchises experienced significant
decreases from the prior year release. Although our PlayStation products are playable on the PlayStation 2 console,
we expect sales of current PlayStation products to continue to decline significantly in fiscal 2002.