Electronic Arts 2008 Annual Report Download - page 79

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS
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 financial 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 reflect
management’s current expectations, and involve subjects that are inherently uncertain and difficult to
predict. Our actual results could differ materially. We will not necessarily update information if any
forward-looking statement later turns out to be inaccurate. Risks and uncertainties that may affect our
future results include, but are not limited to, those discussed under the heading “Risk Factors”,
beginning on page 14.
PART I
Item 1: Business
Overview
Electronic Arts develops, markets, publishes and distributes video game software and content that can be
played by consumers on a variety of platforms, including:
• Video game consoles such as the Sony PlayStation»2 and PLAYSTATION»3, Microsoft Xbox 360
TM
and Nintendo Wii
TM
,
• Personal computers, including the Macintosh (we refer to personal computers and the Macintosh
together as “PCs”),
• Handheld game players such as the PlayStation»Portable (“PSP
TM
”) and Nintendo DS
TM
and iPod», and
• Cellular handsets.
In fiscal 2008, excluding cell phones, we developed or published products for 10 different platforms and since
our inception, we have published games for over 50 different platforms. In fiscal 2008 we also published over
30 games for cellular handsets.
We also provide online game-related services (e.g., matchmaking and subscription services) for these
platforms.
We generate net revenue primarily from sales of packaged goods, online subscriptions, online and mobile
downloads, micro-transactions, and advertising.
Our ability to publish games across multiple platforms has been, and will continue to be, a cornerstone of our
product strategy. Historically, there have been multiple video game consoles and handheld game players
available to consumers, and there has been vigorous competition among hardware manufacturers. In previous
hardware cycles, Sony’s PlayStation and PlayStation 2 consoles have significantly outsold their competitors.
The current hardware cycle is characterized by fierce competition from three strong and viable competitors —
Microsoft’s Xbox 360, the Nintendo Wii and Sony’s PLAYSTATION 3. In fiscal 2008, we developed and
published 20 titles for the Xbox 360, 17 titles for the PLAYSTATION 3, 15 titles for the PlayStation 2, 14 titles
for the Wii, two titles for the Xbox and one title for the Nintendo GameCube. The PC also continues to be an
important interactive game platform. In fiscal 2008, we published 29 titles for the PC (including the
Macintosh). Similarly, there is also competition in the handheld games hardware business, where the Nintendo
DS and Sony’s PSP are both viable platforms. In fiscal 2008, we published 12 titles for the Nintendo DS, nine
titles for the PSP and one title for the Game Boy Advance. Many of our PC, PlayStation 2, PLAYSTATION 3,
Wii, Xbox 360, Xbox and PSP titles include online functionality which enables consumers to participate in
online communities and play against one another via the Internet.
Annual Report
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