Electronic Arts 2002 Annual Report Download - page 10

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INITIATIVE #2: LEADERSHIP ON THE PC
EA is the number one entertainment software publisher on the PC in North America, Europe and Asia
Pacific, and number two in Japan. We earned a 22 percent market share on the PC in the U.S. and had
four of the top five titles in fiscal 2002.
The key driver of this success is the ongoing popularity of
The Sims
.The core product has sold in
excess of 6.5 million units and was the best-selling PC game for the second year in a row—an extraordi-
nary achievement.
The Sims
has inspired four expansion packs—
Livin’ Large
,
House Party
,
Hot Date
and
Vacation
—to bring total franchise sales to more than 15 million units to date.
EA increased PC market share across all territories with the release of other popular titles including
Medal of Honor Allied Assault
™
,
Harry Potter and the Sorcerer’s Stone
and
Command & Conquer Renegade
™
.
INITIATIVE #3: LEADERSHIP ONLINE
In fiscal 2002, we increased EA.comSM revenue 83 percent; we reduced spending and focused on opera-
tional efficiencies; we successfully integrated games and customers from our ad-driven Pogo
™site; and we
zeroed in on the development of core products such as
Earth & Beyond
™
and the highly anticipated
The
Sims Online
™
.We are working hard to reach profitability and are targeting our first break-even quarter
in fiscal 2003 when we release
The Sims Online
.
Based on total minutes served, EA.com is the fourth largest website behind only AOL, MSN and
Yahoo!. At the end of our fiscal year, EA.com had more than 13 million unique monthly visitors who
spent in excess of 4.6 billion minutes on the site—41 percent of the total U.S. online gaming market.
INITIATIVE #4: TO BE THE NUMBER ONE PEOPLE COMPANY
FOR HIGH-PERFORMANCE TEAMS AND INDIVIDUALS
Our strategy for achieving this goal is to work with the very best talent, to provide training and career
development and to offer rewarding compensation and benefit programs.This initiative has enhanced the
quality of our organization and has attracted the attention of creative people in other sectors of the
entertainment industry. Our human resources function has become a strategic weapon for EA—attracting,
hiring and retaining the very best talent in our industry. We are committed to making EA the best place
to work for people that share our passion for interactive entertainment and performance excellence.
BUILDING ON LEADERSHIP IN FISCAL 2003
AND INTO THE NEXT TECHNOLOGY CYCLE
Our management team has navigated several cycles of technology transition. We made the difficult deci-
sions that were required to move EA successfully through a challenging period. Now we are well
positioned to capture the growth of the new cycle. Revenues from our core packaged goods business will
increase, operating margins will expand and our EA.com business will reach its first break-even quarter
in fiscal 2003.
EA 2002 AR
6