Electronic Arts 2001 Annual Report Download - page 5

E L E C T R O N I C A R T S
3
LOOKING AHEAD: HITS AND INNOVAT I O N
H i s t o r i c a l l y, the console market has grown by 50 percent or more with each new generation of technology. By
most estimates, the next generation of 128-bit machines could develop an installed base of more than 200 mil-
lion systems worldwide. More hard w a re units translate into more software sales. Also, as gameplay, graphics
and audio improve to match the enhanced technology, software tie ratios (the number of software units sold
per hard w a re system) are likely to increase in the future. These are all clear indications of organic growth in
our industry.
As new entries from Nintendo and Microsoft heat up the competition in console gaming, and as online
gaming continues to gro w, EA’s primary goal will be to expand on the market leadership we achieved in
FY01. Within our industry, EA’s scale allows us the unique ability to leverage intellectual pro p e rties across mul-
tiple platforms and publish them around the globe.
E A’s fundamental strategy is based on creating new hits and innovative products. In FY01, titles like T h e
S i m s and S S X along with our lineup of franchises under our EA SPORTS
™
b r a nd – Madden NFL
™
, F I FA Soccer, N HL
®
,
NBA Live, Tiger Woods PGA TOUR
®
G o l f, Triple Play Baseball
™
,F o rmula One, Knockout Kings
™
and N A S C AR
®
–
i n s p i red loyal consumers and drew new audiences to the fun of video games. In FY02 we will release a full slate
of potential new hits including NBA STREET, James Bond 007…Agent Under Fire
™
,Pirates of Skull Cove
™
and the
first in a series of multiple products based upon the Harry Potter
™
p ro p e rt y, which EA has licensed exclusively
for the video game category.
This strategy of hits and innovation will usher in a new age of video gaming. As our core consumers mature
and younger gamers enter the market, we’re also seeing greater numbers of women drawn to our products. As
technology improves and gameplay adopts deeper story lines and character development, the evolution of
video games is accelerating. Interactive entertainment has truly become mainstream entertainment. EA intends
to remain at the fore f r ont of this exciting and rapidly expanding industry.
As always, I want to thank and acknowledge our customers, stockholders and employees for their com-
mitment and ongoing support of Electronic Arts.
S i n c e re l y ,
L a w rence F. Probst III CHAIRMAN AND CHIEF EXECUTIVE OFFICER
This Annual Report, including this Letter to Stockholders, as wel l as Management’s Discussion and Analysis on pages 14 to 32, contains forw a rd -
looking statements about circumstances that have not yet occurred. All statements, trend analysis and other information related to markets,
o u
r products and trends in revenue, as well as other statements including such words as “anticipate”, “believe” or “expect” and statements in the future
tense are forw a rd-looking statements. These forw a rd-looking statements are subject to business and economic risks and actual events or our actual
f u t u re results could differ materially from those set forth in the forw a rd-looking statements due to such risks and uncertainties. We will not necessarily
update information if any forw a rd-looking statement later turns out to be inaccurate. Risks and uncertainties that may affect our future results and per-
f o rmance include, but are not limited to those listed under the heading “Risk Factors” at page 30 of this Annual Report and under the same heading in
our Annual Report on Form 10-K for the year ended March 31, 2001.