Electronic Arts 2004 Annual Report Download - page 41

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Bond franchise as a result of the timing of the release of James Bond 007
TM
:Everything or Nothing
TM
(on all
platforms except the Game Boy Advance) in the fourth quarter of Ñscal 2004, as compared to the strong sales
of James Bond 007: NIGHTFIRE
TM
, which was released in the third quarter of Ñscal 2003. Together, lower
sales in these franchises reduced net revenue by $176.8 million for the year ended March 31, 2004 as
compared to the year ended March 31, 2003.
Europe
For Ñscal 2004, net revenue in Europe increased by 34.3 percent as compared to Ñscal 2003. We estimate
foreign exchange rates (primarily the Euro and the British pound sterling) strengthened reported European
net revenue by approximately $136 million or 15 percent for the year ended March 31, 2004. From a
franchise perspective, the net revenue increase was primarily driven by higher sales of products released
during the year ended March 31, 2004 in the following eleven franchises: Need for Speed, The Sims, FIFA
Soccer, Lord of the Rings
TM
, Medal of Honor, Final Fantasy, SSX, Football Manager, Freedom Fighters,
Tiger Woods/PGA TOUR and Rugby. Increased sales in these franchises resulted in an increase in net
revenue of $372.6 million for the year ended March 31, 2004 as compared to the year ended March 31, 2003.
The increase was partially oÅset by (1) a decrease in our Harry Potter franchise, as the Ñscal 2004 title,
Harry Potter: Quidditch World Cup, had no associated movie release, while our Ñscal 2003 product, Harry
Potter and the Chamber of Secrets, was released in conjunction with the blockbuster movie of the same title,
and (2) an expected decrease in sales of our World Cup franchise due to strong sales in the year ended
March 31, 2003 in conjunction with the World Cup event and no similar event in the year ended March 31,
2004. Together, the two items noted above, reduced net revenue by $92.3 million for the year ended
March 31, 2004 as compared to the year ended March 31, 2003.
Asia PaciÑc
For Ñscal 2004, net revenue from sales in the Asia PaciÑc region, excluding Japan, increased by 10.4 percent
as compared to Ñscal 2003. The growth in net revenue was driven by the Need for Speed, The Sims and other
franchises, partially oÅset by declines in the Harry Potter and World Cup franchises. We estimate foreign
exchange rates strengthened reported Asia PaciÑc net revenue by approximately $15 million or 17 percent, for
the year ended March 31, 2004. Excluding the eÅect of foreign exchange rates, we estimate that Asia PaciÑc
net revenue decreased by approximately $6 million or 7 percent, for the year ended March 31, 2004.
Japan
For Ñscal 2004, net revenue from sales in Japan decreased by 11.8 percent as compared to Ñscal 2003 primarily
due to declines in sales in the World Cup, Harry Potter and Final Fantasy franchises. In addition, we estimate
that favorable changes in foreign exchange rates oÅset the decline in reported net revenue in Japan by
approximately $6 million or 7 percent, for the year ended March 31, 2004.
26