Electronic Arts 2009 Annual Report Download - page 119

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Annual Report
We expect net revenue for North America to decrease during fiscal year 2010 as compared to fiscal year 2009
due to an expected increase in deferred net revenue related to our online-enabled packaged goods and digital
content.
The change in deferred net revenue for the fiscal years ended March 31, 2009 and 2008 for North America was
as follows (in millions):
Year Ended March 31,
Increase2009 2008
PlayStation 2 ....................................................... $27 $ (28) $ 55
PLAYSTATION 3 .................................................. 27 (73) 100
PSP .............................................................. 12 (20) 32
Other ............................................................. (16) (37) 21
Total Impact on Net Revenue .......................................... $50 $(158) $208
Europe
For fiscal year 2009, net revenue in Europe was $1,589 million, driven by FIFA 09, Need for Speed Undercover,
and Rock Band. Net revenue for fiscal year 2009 increased 3 percent, or $48 million, as compared to fiscal year
2008. From an operational perspective the increase in net revenue was driven by (1) a $196 million increase in
net revenue from sales of titles for the PLAYSTATION 3, and (2) a $56 million increase in net revenue from
sales of titles for the Xbox 360. These increases were partially offset by (1) a $159 million decrease in net
revenue from sales of titles for the PlayStation 2, (2) a $39 million decrease in net revenue from sales of titles for
the Nintendo DS, and (3) a $16 million decrease in net revenue from sales of titles for the PC.
The recognition of deferred net revenue increased our reported net revenue by $68 million during the year ended
March 31, 2009 as compared to a decrease in our reported net revenue due to the deferral of $169 million of net
revenue for the year ended March 31, 2008.
We estimate that foreign exchange rates (primarily the British pound sterling) decreased reported net revenue,
including the foreign exchange impact from deferred net revenue, by approximately $19 million, or 1 percent, for
the year ended March 31, 2009 as compared to the year ended March 31, 2008. Excluding the effect of foreign
exchange rates from net revenue, we estimate that net revenue increased by approximately $67 million, or 4
percent, for the year ended March 31, 2009 as compared to the year ended March 31, 2008.
We expect net revenue for Europe to decrease during fiscal year 2010 as compared to fiscal year 2009 due to an
expected increase in deferred net revenue related to our online-enabled packaged goods and digital content.
The change in deferred net revenue for the fiscal years ended March 31, 2009 and 2008 for Europe was as
follows (in millions):
Year Ended March 31,
Increase2009 2008
PLAYSTATION 3 .................................................. $34 $ (93) $127
PlayStation 2 ....................................................... 18 (18) 36
PSP .............................................................. 10 (22) 32
PC ............................................................... 7 (30) 37
Other ............................................................. (1) (6) 5
Total Impact on Net Revenue .......................................... $68 $(169) $237
39