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Annual Report
FIFA Soccer, (2) a $54 million decrease from sales of Medal of Honor, (3) a $42 million decrease from sales of
NBA Live, and (4) a $29 million decrease from sales of Army of Two™, which was released in fiscal year 2008
with no comparable release in fiscal year 2009. These decreases were partially offset by $87 million from sales
of Spore.
The Recognition of Revenue Deferral for fiscal year 2009 increased $372 million, or 45 percent, as compared to
fiscal year 2008. Starting in fiscal year 2008, since VSOE did not exist for our online service, we began to
recognize all of the Net Revenue from bundled sales on a deferred basis over an estimated online service period,
which generally is estimated to be six months beginning in the month after shipment. As a result, in fiscal year
2008 we recognized $831 million of Revenue Deferral related to packaged goods and digital content from fiscal
year 2008 sales and did not have any recognition of Revenue Deferral related to packaged goods and digital
content from fiscal year 2007 sales. However, in fiscal year 2009, we recognized revenue of $354 million from
sales made in fiscal year 2008 and revenue of $849 million from sales made in fiscal year 2009. From an
operational perspective, this increase was primarily driven by (1) $83 million from sales of Spore, (2) a $44
million increase from sales of Need for Speed, and (3) a $39 million increase from sales of Army of Two.
For fiscal year 2009, Net Revenue was $4,212 million, driven by Rock Band, FIFA 09, and Rock Band 2. Net
Revenue for fiscal year 2009 increased $547 million, or 15 percent, as compared to fiscal year 2008. From an
operational perspective, this increase was primarily driven by (1) a $270 million increase from sales of Rock
Band and (2) $110 million from sales of Spore, and (3) an $82 million increase from sales of Battlefield.
North America
For fiscal year 2009, Net Revenue before Revenue Deferral in North America was $2,362 million, driven by
Rock Band 2,Madden NFL 09, and Rock Band. Net Revenue before Revenue Deferral for fiscal year 2009
increased $262 million, or 12 percent, as compared to fiscal year 2008. From an operational perspective, this
increase was primarily driven by (1) a $184 million increase from sales of Rock Band and (2) $63 million from
sales of Spore.
Revenue Deferral for fiscal year 2009 decreased $33 million, or 6 percent, as compared to fiscal year 2008. From
an operational perspective, the decrease was primarily driven by (1) a $28 million decrease from sales of NBA
Live, (2) a $24 million decrease from sales of Madden NFL Football, (3) a $20 million decrease from sales of
Medal of Honor, (4) a $16 million decrease from sales of FIFA Soccer, and (5) a $14 million decrease from sales
of Army of Two. These decreases were partially offset by (1) $46 million from sales of Spore and (2) $21 million
from sales of Warhammer.
The Recognition of Revenue Deferral for fiscal year 2009 increased $175 million, or 42 percent, as compared to
fiscal year 2008. From an operational perspective, the increase was primarily driven by (1) $43 million from
sales of Spore, (2) a $19 million increase from sales of Army of Two, and (3) $14 million from sales of
Warhammer.
For fiscal year 2009, Net Revenue in North America was $2,412 million, driven by Rock Band 2,Rock Band, and
Madden NFL 09. Net Revenue for fiscal year 2009 increased $470 million, or 24 percent, as compared to fiscal
year 2008. From an operational perspective, this increase was primarily driven by (1) a $184 million increase
from sales of Rock Band and (2) $60 million from sales of Spore.
Europe
For fiscal year 2009, Net Revenue before Revenue Deferral in Europe was $1,521 million, driven by FIFA 09,
Need for Speed Undercover, and Rock Band. Net Revenue before Revenue Deferral for fiscal year 2009
decreased $189 million, or 11 percent, as compared to fiscal year 2008. From an operational perspective, this
decrease was primarily driven by (1) a $123 million decrease from sales of The Sims, (2) a $91 million decrease
from sales of The Simpsons, (3) a $69 million decrease from sales of Need for Speed, and (4) a $63 million
decrease from sales of Harry Potter. These decreases were partially offset by (1) a $79 million increase from
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