Electronic Arts 2010 Annual Report Download - page 119

Annual Report
(1) $149 million from sales of Dragon Age which was released in 2010 with no comparable release in 2009, (2) a
$137 million increase from sales of The Sims, and (3) $131 million from sales of EA SPORTS Active, which
was released in 2010 with no comparable release in 2009. These increases were partially offset by a $329 million
decrease from sales of Rock Band.
Revenue Deferral for fiscal year 2010 increased $1,281 million, or 119 percent, as compared to fiscal year 2009.
Starting in fiscal year 2010, we began to sell substantially all of our online-enabled products released after
April 1, 2009, with an obligation to provide future incremental unspecified digital content on a when and if
available basis. As we do not have VSOE for this obligation, we are required to recognize the revenue associated
with this bundled sale over the expected life of the game. From an operational perspective, this increase was
primarily driven by (1) a $263 million increase from sales of The Sims, (2) a $174 million increase from sales of
FIFA Soccer, (3) a $171 million increase from sales of Battlefield, and (4) $150 million from sales of Dragon
Age.
The Recognition of Revenue Deferral for fiscal year 2010 increased $650 million, or 54 percent, as compared to
fiscal year 2009. This increase is directly related to the increase in the Revenue Deferral in fiscal year 2010.
From an operational perspective, this increase was primarily driven by (1) a $215 million increase from sales of
The Sims and (2) a $138 million increase from sales of FIFA Soccer.
For fiscal year 2010, Net Revenue was $3,654 million, driven by FIFA 10,Madden NFL 10, and The Sims 3. Net
Revenue for fiscal year 2010 decreased $558 million, or 13 percent, as compared to fiscal year 2009. From an
operational perspective, this decrease was primarily driven by (1) a $329 million decrease from sales of Rock
Band and (2) an $84 million decrease from sales of Battlefield primarily due to a larger amount being deferred
because of our obligation to provide future incremental unspecified digital content that did not exist in fiscal year
2009. These decreases were partially offset by (1) $131 million from sales of EA SPORTS Active and (2) an $89
million increase from sales of The Sims.
North America
For fiscal year 2010, Net Revenue before Revenue Deferral in North America was $2,322 million, driven by
Madden NFL 10,The Beatles™:Rock Band, and Battlefield: Bad Company™2. Net Revenue before Revenue
Deferral for fiscal year 2010 decreased $40 million, or 2 percent, as compared to fiscal year 2009. From an
operational perspective, this decrease was primarily driven by a $293 million decrease from sales of Rock Band.
This decrease was partially offset by (1) $90 million from sales of EA SPORTS Active, (2) $89 million from
sales of Dragon Age, and (3) a $62 million increase from sales of The Sims.
Revenue Deferral for fiscal year 2010 increased $717 million, or 133 percent, as compared to fiscal year 2009.
From an operational perspective, the increase was primarily driven by (1) a $106 million increase from sales of
Madden NFL Football, (2) a $96 million increase from sales of The Sims, (3) a $91 million increase from sales
of Battlefield, and (4) $91 million from sales of Dragon Age.
The Recognition of Revenue Deferral for fiscal year 2010 increased $370 million, or 63 percent, as compared to
fiscal year 2009. From an operational perspective, the increase was primarily driven by (1) an $80 million
increase from sales of Madden NFL Football, (2) a $79 million increase from sales of The Sims, (3) $49 million
from sales of Dragon Age, and (4) a $45 million increase from sales of Fight Night.
For fiscal year 2010, Net Revenue in North America was $2,025 million, driven by Madden NFL 10,The
Beatles:Rock Band, and Rock Band 2. Net Revenue for fiscal year 2010 decreased $387 million, or 16 percent, as
compared to fiscal year 2009. From an operational perspective, this decrease was primarily driven by a $293
million decrease from sales of Rock Band, partially offset by $90 million from sales of EA SPORTS Active.
Europe
For fiscal year 2010, Net Revenue before Revenue Deferral in Europe was $1,615 million, driven by FIFA 10,
The Sims 3, and Need for Speed Shift. Net Revenue before Revenue Deferral for fiscal year 2010 increased $94
million, or 6 percent, as compared to fiscal year 2009. From an operational perspective, this increase was
primarily driven by (1) a $68 million increase from sales of The Sims, (2) a $64 million increase from sales of
FIFA Soccer, and (3) $53 million from sales of Dragon Age. These increases were partially offset by (1) a $39
million decrease from sales of Rock Band and (2) a $36 million decrease from sales of Spore. We estimate that
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