Electronic Arts 2006 Annual Report Download - page 83

fiscal 2006 for the Xbox, compared to 26 titles in fiscal 2005. Our top five Xbox releases for fiscal 2006
were Madden NFL 06, Need for Speed Most Wanted, NCAA Football 06, Burnout Revenge and FIFA 06.
In Ñscal 2006, approximately 5 percent of our net revenue was derived from sales of EA Studio games
designed for play on the Xbox 360. We released seven titles worldwide in Ñscal 2006 for the Xbox 360.
Our top Ñve Xbox 360 releases for Ñscal 2006 were Need for Speed Most Wanted, Madden NFL 06,
EA SPORTS
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Fight Night Round 3, FIFA 06 and NBA LIVE 06.
Nintendo. Under the terms of license agreements we entered into with Nintendo of America and
Nintendo Company Ltd. (Japan), we are authorized to develop and distribute proprietary optical format
disk products compatible with the Nintendo GameCube, the Nintendo DS and Game Boy Advance.
Pursuant to these agreements, we engage Nintendo to supply Nintendo GameCube proprietary optical
format disk products for our products.
In Ñscal 2006, approximately 5 percent of our net revenue was derived from sales of EA Studio games
designed for play on the Nintendo GameCube, compared to 7 percent in Ñscal 2005. We released 14 titles
worldwide in Ñscal 2006 for the Nintendo GameCube, compared to 20 titles in Ñscal 2005. Our top Ñve
Nintendo GameCube releases for the year were Need for Speed Most Wanted, Harry Potter and the
Goblet of Fire, Madden NFL 06, FIFA 06 and The Sims 2.
We are currently in discussions with Nintendo of America and Nintendo Company Ltd. (Japan) to secure
a license to develop and distribute DVD-based software products compatible with the forthcoming
Nintendo Wii console.
Wireless Carrier Channel
We have agreements to distribute our wireless applications through more than 90 carriers in over 40
countries. Our customers download our applications to their cellular handsets and their wireless carrier
invoices them a one-time fee or monthly subscription fee. Our carrier distribution agreements establish the
fees to be retained by the carrier for distributing our applications. Our carrier agreements are not exclusive
and generally have a limited term of one or two years, with evergreen, or automatic renewal, provisions
upon expiration of the initial term. The agreements generally do not obligate the carriers to market or
distribute any of our applications. In addition, the carriers can often terminate these agreements early and,
in some instances, without cause.
Annual Report
Content Licensors
Many of our products are based on or incorporate content and trademarks owned by others. For example,
our EA SPORTS and EA SPORTS BIG products include rights licensed from the major sports leagues
and players associations. Similarly, many of our hit EA franchises, such as The Godfather, Harry Potter
and Lord of the Rings, are based on key Ñlm and literary licenses. Celebrities and organizations with
whom we have contracts include: FIFA, FIFPRO Foundation and UEFA (professional soccer); NASCAR
and ISC (stock car racing); National Basketball Association (professional basketball); PGA TOUR, Tiger
Woods and Pebble Beach (professional golf); National Hockey League and NHLPA (professional
hockey); Warner Bros. (Harry Potter, Batman and Superman); New Line Productions and Saul Zaentz
Company (The Lord of the Rings); Marvel Enterprises (Ñghting); National Football League Properties,
Arena Football League and PLAYERS Inc. (professional football); Collegiate Licensing Company
(collegiate football, basketball and baseball); Simcoh (Def Jam); Viacom Consumer Products (The
Godfather); Valve Corporation (Half-Life and Counter-Strike); ESPN (content in EA SPORTS games);
Twentieth Century Fox Licensing and Merchandising (The Simpsons); Lamborghini, McLaren and
Porsche (car licenses for Need for Speed); and mobile game rights with PopCap Games and The Tetris
Company. In the future, we will likely enter into other relationships with other signiÑcant content
providers.
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