Electronic Arts 2011 Annual Report Download - page 79

Annual Report
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, made in this Report are
forward looking. Examples of forward-looking statements include statements related to industry
prospects, our future economic performance including anticipated revenues and expenditures, results of
operations or financial position, and other financial items, our business plans and objectives, including our
intended product releases, and may include certain assumptions that underlie the forward-looking
statements. 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 from those in the forward-looking statements. 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 13.
PART I
Item 1: Business
We develop, market, publish and distribute game software and content that can be played by consumers on a
variety of video game machines and electronic devices (which we call “platforms”), including:
• Video game consoles, such as the Sony PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii,
• Personal computers, including the Apple Macintosh (we refer to personal computers and the Macintosh
together as “PCs”),
• Mobile phones, such as the Apple iPhone, Google Android compatible phones, and feature phones,
• Tablets and electronic readers, such as the Apple iPad and the Amazon Kindle,
• The Internet, including on social networking sites such as Facebook, and
• Handheld game players such as the Sony PlayStation Portable (“PSP”) and Nintendo DS and 3DS.
Our ability to publish games across multiple platforms has been, and will continue to be, a cornerstone of our
product strategy. Technology advances continue to create new platforms for interactive entertainment. Examples
include wireless technologies, streaming gaming services, and Internet-connected televisions. We expect that
new platforms such as these will continue to grow the consumer base for our products while also providing
competition for established video game platforms.
Our products for videogame consoles, PCs and handhelds are delivered on physical media (disks and cartridges)
that are sold at retailers (we call these “packaged goods” products) or by us directly to consumers. We also
deliver game content and services online for the platforms listed above through digital downloads. In addition,
we offer online delivered content and services as add-ons or as related features to our packaged goods products
(e.g., add-on content or matchmaking services); while other games, content and services that we offer, such as
games for mobile devices, and Internet-only games, are available only through online delivery. We believe that
online delivery of game content and services has become and will continue to be an increasingly important part
of our business.
Our games span a diverse range of categories, including action-adventure, casual, family, fantasy, first-person
shooter, horror, massively-multiplayer online role-playing, music, racing, simulation, sports, and strategy. We
3