2K Sports 2009 Annual Report Download - page 2

Fiscal year 2009 proved to be a di
ffi
cult time
f
or
our industry and a challenging one
f
or our company.
The economic environment in
fl
uenced every
f
acet
o
f
our sector. Un
f
avorable market conditions, as well
as severa
l
c
h
anges in our pro
d
uct re
l
ease sc
h
e
d
u
l
e,
r
esulted in a net loss
f
or
fi
scal year 2009 on net
r
evenue of
$
968.5 million.
We remain con
fi
dent in and committed to
our strategy o
f
delivering a select port
f
olio o
f
t
rip
l
e-A, top-rate
d
tit
l
es across a
ll
k
e
y
genres an
d
expandin
g
the reach and economic impact o
f
our
franchises throu
g
h new distribution channels and
t
erritories. Our in
d
ustr
y
-
l
ea
d
ing creative ta
l
ent an
d
owne
d
inte
ll
ectua
l
propert
y
, coup
l
e
d
wit
h
our soun
d
financial position, provides us with the stren
g
th and
flexibilit
y
to build long-term value.
O
UR A
CCO
MPLISHMENT
S
We accomplished a great deal in the past
y
ear of
w
hich we are very proud, including
:
•
Diversified our industry-leading product portfolio,
which will be re
fl
ected in our products planned
f
or
release in
fi
scal 2010 and 2011
;
•
Successfull
y
expanded upon our world-renowned
G
rand Theft Aut
o
franchise with new offerin
g
s
a
cross multiple platforms, including downloadable
content and titles for the DS
,
PSP and iPhone
;
•
R
e
l
e
as
e
d
N
BA 2K1
0
and in
c
r
e
as
e
d
o
ur mark
e
t shar
e
f
or the number one rated and number one sellin
g
bask
e
tball fran
c
his
e
with
o
v
e
r 2 milli
o
n units
o
f
the title sold
;
•
Success
f
ull
y
launched Bor
d
er
l
an
ds
,
a
ne
w
i
nte
ll
ectua
l
propert
y
t
h
at
h
as so
ld
over 2 mi
ll
ion
units and is now expected to be a meanin
g
ful
l
on
g
-term franchise for Take-Two;
•
Expan
d
e
d
into an
d
capita
l
ize
d
on new
d
i
g
ita
l
distribution channels and
p
lat
f
orms to maximize
the value o
f
our intellectual property;
•
Bene
fi
tted
f
rom the continued strength o
f
our cata
-
l
og, including our wholly-owned
C
arnival
G
ames
f
ranchise, which has sold over 6 million units;
• Expanded our presence in Asia, includin
g
the
p
lanned release of NBA 2K
O
nlin
e
;
• Completed a $138 million convertible note offerin
g
;
• Resolved several signi
fi
cant historical legal matters;
• Signed a definitive asset purchase agreement to
s
ell the Company’s non-core Jack o
f
All Games
distribution business
;
an
d
• Initiated a tar
g
eted restructurin
g
of our corporate
departments to reduce costs and ali
g
n our
r
esources with our goals
.
O
UR STRATE
GY
Our strategy is to deliver efficiently a limited
numb
e
r
of
th
e
m
o
st
c
r
e
ativ
e
and inn
o
vativ
e
titl
e
s
in our industry that capture mindshare and market
share alike. Take-Two’s port
f
olio encompasses all o
f
today’s key genres, and we’re continually exploring
new areas w
h
ere we can
l
everage our
d
eve
l
opment
e
x
p
ertise to ex
p
an
d
our au
d
iences across new
territories, c
h
anne
l
s an
d
d
istri
b
ution mo
d
e
l
s
.
We’re in a
h
its-
d
riven in
d
ustry: t
h
e
k
ey to our
success
l
ies in our a
b
i
l
ity to
d
e
l
iver t
h
e
h
ig
h
est
q
ua
l
it
y
interactive entertainment experiences.
W
h
et
h
er creating exciting new inte
ll
ectua
l
propert
y
suc
h
as
B
or
d
er
l
an
d
s or
b
ui
ld
in
g
upon proven
franchises like Grand The
f
t Auto an
d
NBA 2K
, our
K
K
ta
l
ente
d
d
eve
l
o
p
ment teams continue to set new
b
e
n
c
hmarks f
o
r inn
o
vati
o
n and
e
x
ce
ll
e
n
ce
. Th
e
ir
c
reative passion is evident in the hi
g
h scores and
awards that their products receive, and allows us to
d
iversif
y
our portfolio and scale our business for
future
g
rowth. We’re proud that our teams include
and are led by some of the best talent in our industry
.
We have taken great strides to achieve our goal
o
f diversifying our product line. Our 2010 lineup is
o
ur most diverse ever and includes sequels to
fi
ve
triple-A, wholly-owned, million-unit selling
f
ranchises
– Bi
o
Sh
oc
k 2
,
Mafia
I
I
,
Max Payne
3
,
Red
D
e
a
d
R
e-
d
emption
a
nd Sid Meier’s
C
ivilization V. W
e
b
e
li
e
v
e
t
h
at t
h
ese seque
l
s wi
ll
appea
l
strong
l
y to existing
f
ans and attract new audiences. By releasing titles
b
ase
d
on
p
roven
b
ran
d
s, we
b
e
l
ieve t
h
at we can miti-
g
ate the risk that is o
f
ten associated with launchin
g
new inte
ll
ectua
l
property
.
DEAR SHAREH
O
LDERS
,