Electronic Arts 2014 Annual Report Download - page 73

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 12.
PART I
Item 1: Business
Overview
We develop, market, publish and distribute game software content and services that can be played by consumers
on a variety of video game machines and electronic devices (which we call “platforms”). These platforms include
video game consoles (such as the Microsoft Xbox 360 and One and the Sony PlayStation 3 and 4), personal
computers (“PCs”), and mobile phones and tablets.
Our Strategy
Leverage Core Intellectual Properties
A cornerstone of our strategy is to leverage established intellectual properties (which we call “brands”) to create
year-round gaming experiences on multiple platforms, each capable of delivering additional content and revenue
over extended periods of time. As an example, in recent years we have released yearly iterations of our FIFA-
branded soccer products for console, PC and mobile platforms; by providing additional content and services for
these products, we are able to extend the period of time over which consumers engage with these products. We
also seek to create and similarly leverage new intellectual properties with the potential to become established
franchises, such as the EA SPORTS UFC mixed-martial arts product expected to be released in June 2014.
Our portfolio of brands spans a diverse range of categories (including action-adventure, casual, family, fantasy,
first-person shooter, horror, science fiction, role-playing, racing, simulation, sports, and strategy) and includes
wholly-owned brands such as Battlefield, Mass Effect, Need for Speed, Dragon Age, The Sims, Bejeweled and
Plants v. Zombies, as well as brands based on licensed intellectual property such as FIFA, Madden NFL and Star
Wars.
In our experience, leveraging strong brands with mass consumer appeal allows us to create iterative brand-based
products and services (e.g., sequels, prequels, spinoffs and installments) that can be sold across a range of
platforms to an established consumer base over extended periods of time.
Focused Product Portfolio
In recent years, we have narrowed our product portfolio to reduce costs and to focus on developing products with
the potential to become hit products. For example, in fiscal year 2011, we published over 30 titles for console and
PC, while in fiscal year 2014 we published 11; in fiscal year 2015, we expect to release 10 titles for console and
PC. We have similarly reduced the number of major mobile titles we publish.
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