Electronic Arts 2007 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2007 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 193

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193

Xbox
For fiscal 2007, net revenue from sales of titles for the Xbox was $157 million, driven primarily by sales of
Madden NFL 07,Need for Speed Carbon, and NCAA Football 07. Overall, Xbox net revenue decreased
$243 million, or 61 percent, as compared to fiscal 2006. Although we are unable to specifically quantify the
impact, we believe the decrease was primarily due to the transition to new generation consoles.
We expect Xbox-related net revenue to continue to decline as consumers increasingly migrate to new platforms
and we publish significantly fewer titles (as compared to fiscal 2007).
PLAYSTATION 3
The PLAYSTATION 3 launched in North America and Japan during the three months ended December 31,
2006 and Europe and the rest of Asia during the three months ended March 31, 2007. Net revenue from sales
of titles for the PLAYSTATION 3 was $94 million for fiscal 2007, driven by sales of Need for Speed Carbon,
Madden NFL 07, and EA SPORTS
TM
Fight Night Round 3.
We expect net revenue from sales of titles for the PLAYSTATION 3 to increase as the installed base grows
and we release more titles. The increase will be partially offset by our deferral of net revenue resulting from
certain online-enabled PLAYSTATION 3 games.
Wii
The Wii launched in North America, Europe and parts of Asia during the three months ended December 31,
2006. Net revenue from sales of titles for the Wii was $65 million for fiscal 2007, driven by sales of Need for
Speed Carbon,Madden NFL 07, and Tiger Woods PGAยปTOUR 07.
We expect net revenue from sales of titles for the Wii to increase as the installed base grows and we release
more titles.
Nintendo GameCube
For fiscal 2007, net revenue from sales of titles for the Nintendo GameCube was $60 million, driven primarily
by sales of Madden NFL 07,Need for Speed Carbon, and FIFA 07. Overall, Nintendo GameCube net revenue
decreased $75 million, or 56 percent, as compared to fiscal 2006. Although we are unable to specifically
quantify the impact, we believe the decrease was primarily due to the transition to new generation consoles.
We expect Nintendo GameCube-related net revenue to continue to decline as consumers increasingly migrate
to new platforms. We will no longer release titles for the Nintendo GameCube, which will also contribute to
our expected net revenue decline from this platform.
PC
For fiscal 2007, net revenue from sales of titles for the PC was $498 million driven primarily by sales of titles
from The Sims, Battlefield, and Command and Conquer franchises. Overall, PC net revenue increased
$80 million, or 19 percent, as compared to fiscal 2006. The increase was due to a $62 million increase in
frontline net revenue and an $18 million increase in catalog net revenue.
Mobile Platforms
Net revenue from mobile products, which consist of packaged goods games for handheld systems and
downloadable games for cellular handsets, increased from $393 million in fiscal 2006 to $540 million in fiscal
2007. The increase was primarily due to a $121 million year-over-year growth in our cellular handset games
business resulting from our acquisition of JAMDAT and an increase of $37 million in net revenue from sales
of titles for the Nintendo DS.
We expect sales of games for cellular handsets to continue to be an increasingly important part of our business
worldwide.
Annual Report
39