Electronic Arts 2006 Annual Report Download - page 75

PART I
This Report contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical fact, including statements
regarding industry prospects and future results of operations or Ñnancial position, made in this Report
are forward looking. We use words such as ""anticipate'', ""believe'', ""expect'', ""intend'', ""estimate'' (and
the negative of any of these terms), ""future'' and similar expressions to help identify forward-looking
statements. These forward-looking statements are subject to business and economic risk and reÖect
management's current expectations, and involve subjects that are inherently uncertain and diÇcult to
predict. Our actual results could diÅer materially. We will not necessarily update information if any
forward-looking statement later turns out to be inaccurate. Risks and uncertainties that may aÅect our
future results include, but are not limited to, those discussed under the heading ""Risk Factors'',
beginning on page 18.
Item 1: Business
Overview
Electronic Arts develops, markets, publishes and distributes interactive software games (we sometimes
refer to them as ""titles'') that are playable by consumers on the following devices:
‚ In-home video game players (such as the Sony PlayStation» 2, Microsoft Xbox» and Xbox 360
TM
and Nintendo GameCube
TM
) Ì we call these players ""consoles'',
‚ Personal computers (PCs),
‚ Mobile platforms including handheld video game players (such as the PlayStation» Portable
(""PSP
TM
''), Nintendo DS
TM
and Game Boy» Advance) and cellular handsets, and
‚ Online, over the Internet and other proprietary online networks.
We refer to consoles, PCs, mobile platforms and online collectively as ""platforms''.
We were initially incorporated in California in 1982. In September 1991, we reincorporated under the laws
of Delaware. Our principal executive oÇces are located near San Francisco, California at 209 Redwood
Shores Parkway, Redwood City, California 94065 and our telephone number is [phone].
We publish interactive software games for multiple platforms. Our products that are designed to play on
consoles and certain mobile platforms are published under license from the manufacturers of these
platforms (for example, Sony for the PlayStation 2 and PSP, Microsoft for the Xbox and Xbox 360, and
Annual Report
Nintendo for the Nintendo GameCube, Game Boy Advance and Nintendo DS). We invest in the creation
of software tools to more eÇciently develop games for multiple platforms. We also make investments in
facilities and equipment that allow us to create and edit video and audio recordings that are used in our
games. Since our inception, we have published games for over 47 diÅerent platforms.
Our product development methods and organization are modeled on those used in other sectors of the
entertainment industry. Employees whom we call ""executive producers'' are responsible for overseeing the
development of one or more products. The interactive software games that we develop and publish are
broken down into two major categories: (1) products developed by our EA studios for play on consoles,
PCs, mobile platforms and online, and (2) co-publishing and distribution products.
EA Studios Products
We develop games internally at our development and production studios located near San Francisco, Los
Angeles, Orlando, Chicago, Vancouver, Montreal, London, Sweden, Tokyo and Shanghai. We also engage
third parties to develop games on our behalf at their own development and production studios.
On February 15, 2006, we acquired JAMDAT Mobile Inc. (""JAMDAT'') based in Los Angeles,
California. JAMDAT is a global publisher of wireless games and other wireless entertainment applications
3