Electronic Arts 2007 Annual Report Download - page 80

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The following table details select information on some of the handheld video game players for which we have
published titles:
Manufacturer Mobile Game Machine/Platform Name Year Introduced
Number of EA Titles
Published in Fiscal 2007
Nintendo .................. Game Boy Advance 2001 6
Nintendo .................. Nintendo DS 2004 8
Sony ..................... PSP 2005 18
In fiscal 2007, we published 26 EA titles for the PC.
Cellular Handsets
Through EA Mobile, we are a leading global publisher of interactive entertainment software playable on
cellular handsets, including games, ring tones, images and other content. Our customers typically purchase and
download our games through a wireless carrier’s branded e-commerce service accessed directly from their
cellular handsets. These wireless carrier services include, among others, Verizon Wireless’ Get It Now, Sprint
PCS Vision, Cingular MEdia and Vodafone live!. Our customers are charged either a one-time or a monthly
subscription fee on their cellular service invoice for the game. The wireless carriers generally retain a
percentage of the fee and pay the remainder to us. The wireless distribution of our games eliminates traditional
publishing complexities, including physical production, packaging, shipping, inventory management and return
processing. Our customers may also purchase and download games directly from our website.
Many of our games are designed to take advantage of multimedia enhancements in the latest generation of
cellular handsets, including high-resolution color displays, increased processing power, improved audio
capabilities and increased memory capabilities. We publish games in multiple categories designed to appeal to
a broad range of wireless subscribers. Our portfolio is primarily based on intellectual properties that we create
and own, and well-established brands and content that we license from third parties.
Online
We publish four types of games that are played online by consumers — online casual games, massively
multiplayer online games, mid-session games, and online-enabled packaged goods. We derive revenue from
these games primarily through paid subscriptions, advertising and sales of digital content.
Online Casual Games. We offer online casual games such as card games, puzzle games and word games on
our website, pogo.com, and on certain online services provided by third parties. We had over 1.5 million paying
Club Pogo subscribers as of March 31, 2007, up from 1.2 million paying subscribers as of March 31, 2006.
Massively Multiplayer Online Games. Players experience online-only “massively multiplayer online games”
(sometimes called “persistent state world games” or “MMOs”) as interactive virtual worlds where thousands of
other players can interact with one another. After installing the software on their PCs, players are able to
subscribe and interact with other players online. We currently offer three MMO games: Ultima Online
TM
, Dark
Age of Camelot»and The Sims Online
TM
, and we are in the process of developing Warhammer»Online.
Mid-session games. Players experience mid-session games as interactive virtual worlds where players form
small groups and interact with one another. We currently offer one mid-session game, EA Sports
TM
FIFA
Online, but anticipate offering more in future years. Although we offer EA Sports FIFA Online for free,
players may purchase additional in-game content from us through micro-transactions.
Online-Enabled Packaged Goods. We include online functionality in certain of our PC, PLAYSTATION 3,
PlayStation 2, Xbox 360, Xbox and PSP products, which enable consumers to participate in online
communities and play against one another via the Internet.
Digital Content. We offer full-game downloads and additional content (such as booster packs, expansion
packs and smaller pieces of game content referred to as micro-transactions) for our PC and console-based
games through our EA.com website and online interfaces within game consoles. In addition, our POGO games
are offered through third-party websites.
6