Electronic Arts 2007 Annual Report Download - page 94

Future acquisitions and investments could involve the issuance of our equity securities, potentially diluting our
existing stockholders, the incurrence of debt, contingent liabilities or amortization expenses, write-offs of
goodwill, intangibles, or acquired in-process technology, or other increased expenses, any of which could harm
our financial condition. Our stockholders may not have the opportunity to review, vote on or evaluate future
acquisitions or investments.
Our products are subject to the threat of piracy by a variety of organizations and individuals. If we are
not successful in combating and preventing piracy, our sales and profitability could be harmed
significantly.
In many countries around the world, more pirated copies of our products are sold than legitimate copies.
Though we believe piracy has not had a material impact on our operating results to date, highly organized
pirate operations have been expanding globally. In addition, the proliferation of technology designed to
circumvent the protection measures we use in our products, the availability of broadband access to the
Internet, the ability to download pirated copies of our games from various Internet sites, and the widespread
proliferation of Internet cafes using pirated copies of our products, all have contributed to ongoing and
expanding piracy. Though we take steps to make the unauthorized copying and distribution of our products
more difficult, as do the manufacturers of consoles on which our games are played, these efforts may not be
successful in controlling the piracy of our products. This could have a negative effect on our growth and
profitability in the future.
Our stock price has been volatile and may continue to fluctuate significantly.
The market price of our common stock historically has been, and we expect will continue to be, subject to
significant fluctuations. These fluctuations may be due to factors specific to us (including those discussed in
the risk factors above as well as others not currently known to us or that we currently do not believe are
material), to changes in securities analysts’ earnings estimates or ratings, to our results or future financial
guidance falling below our expectations and analysts’ and investors’ expectations, to factors affecting the
computer, software, Internet, entertainment, media or electronics industries, or to national or international
economic conditions.
Item 1B: Unresolved Staff Comments
None.
Item 2: Properties
The following diagram depicts the locations of our most significant facilities throughout the world:
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