2K Sports 2009 Annual Report Download - page 26
Download and view the complete annual report
Please find page 26 of the 2009 2K Sports annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.P 7I@HIF5@ 7<5@@9B;9G 5GGC7=5H98 K=H< =BH9;F5H=B; 9AD@CM99G :FCA 5B 57EI=F98 7CAD5BM CF 6IG=B9GG
=BHCCIFCF;5B=N5H=CB
P H<9DCGG=6=@=HMH<5HH<97CA6=B987CAD5BMKCI@8BCH57<=9J9H<99LD97H9869B9:=HG=B7@I8=B;5BM
5BH=7=D5H98CD9F5H=B;5B8DFC8I7HGMB9F;=9GC:H<957EI=G=H=CB5GEI=7?@M5G5BH=7=D5H98CFH<5HH<9
7CGHGC:CFCD9F5H=CB5@8=::=7I@H=9G5F=G=B;:FCA5B57EI=G=H=CBKCI@869;F95H9FH<5B5BH=7=D5H98
P G=;B=:=75BH 57EI=G=H=CBF9@5H98 577CIBH=B; 58>IGHA9BHG D5FH=7I@5F@M F9@5H=B; HC 5B 57EI=F98
7CAD5BMG 89:9FF98 F9J9BI9 H<5H A5M 75IG9 F9DCFH98 F9J9BI9 5B8 DFC:=HG C: H<9 7CA6=B98
7CAD5BMHC69@CK9FH<5BH<9GIAC:H<9=FGH5B85@CB9F9J9BI95B8DFC:=HG
P G=;B=:=75BH 577CIBH=B; 7<5F;9G F9GI@H=B; :FCA H<9 7CAD@9H=CB 5B8 =BH9;F5H=CB C: 5 G=N956@9
57EI=G=H=CB5B8=B7F95G9875D=H5@9LD9B8=HIF9G=B7@I8=B;DCH9BH=5@=AD5=FA9BH7<5F;9G=B7IFF98HC
KF=H98CKBH<975FFM=B;5ACIBHC:=BH5B;=6@95GG9HG;9B9F5H985G5F9GI@HC:5B57EI=G=H=CB
P H<9 DCGG=6=@=HM H<5H K9 K=@@ BCH 8=G7CJ9F =ADCFH5BH :57HG 8IF=B; 8I9 8=@=;9B79 H<5H 7CI@8 <5J9 5
A5H9F=5@58J9FG9=AD57HCBH<9J5@I9C:H<96IG=B9GG9GK957EI=F9=B7@I8=B;H<9DCGG=6=@=HMH<5H5
7<5B;9 C: 7CBHFC@ C: 5 7CAD5BM K9 57EI=F9 HF=;;9FG 5 H9FA=B5H=CB C: 7CBHF57HI5@ CF =BH9@@97HI5@
DFCD9FHMF=;<HG=ADCFH5BHHCH<9CD9F5H=CBC:=HG6IG=B9GG
P H<9B998HC=BH9;F5H95B57EI=F987CAD5BMG577CIBH=B;A5B5;9A9BH=B:CFA5H=CB<IA5BF9GCIF79
5B8 CH<9F 58A=B=GHF5H=J9 GMGH9AG HC D9FA=H 9::97H=J9 A5B5;9A9BH 5B8 H=A9@M F9DCFH=B; 5B8 H<9
B998HC=AD@9A9BHCFF9A98=5H97CBHFC@GDFC798IF9G5B8DC@=7=9G5DDFCDF=5H9:CF5DI6@=77CAD5BM
=B 5B 57EI=F98 7CAD5BM H<5H DF=CF HC H<9 57EI=G=H=CB @57?98 H<9G9 7CBHFC@G DFC798IF9G 5B8
DC@=7=9G
P @=H=;5H=CBCFCH<9F7@5=AG=B7CBB97H=CBK=H<CF=B<9F=H5B79C:7@5=AGCF@=H=;5H=CBF=G?G5G5F9GI@HC:
5B57EI=G=H=CB=B7@I8=B;7@5=AG:FCAH9FA=B5H989AD@CM99G7IGHCA9FGCFCH<9FH<=F8D5FH=9G5B8
P HC H<9 9LH9BH H<5H K9 9B;5;9 =B GHF5H9;=7 HF5BG57H=CBG CIHG=89 C: H<9 .B=H98 ,H5H9G K9 :579
588=H=CB5@ F=G?G =B7@I8=B; F=G?G F9@5H98 HC =BH9;F5H=CB C: CD9F5H=CBG 57FCGG 8=::9F9BH 7I@HIF9G 5B8
@5B;I5;9G7IFF9B7MF=G?G5B8H<9D5FH=7I@5F97CBCA=7DC@=H=75@5B8F9;I@5HCFMF=G?G5GGC7=5H98K=H<
GD97=:=77CIBHF=9G
IHIF9 57EI=G=H=CBG 5B8 =BJ9GHA9BHG 7CI@8 5@GC =BJC@J9 H<9 =GGI5B79 C: CIF 9EI=HM 5B8 9EI=HM@=B?98
G97IF=H=9GDCH9BH=5@@M8=@IH=B;CIF9L=GH=B;GHC7?<C@89FGH<9=B7IFF9B79C:896H 7CBH=B;9BH @=56=@=H=9G CF
5ACFH=N5H=CB 9LD9BG9G KF=H9C::G C: ;CC8K=@@ =BH5B;=6@9G CF 57EI=F98 =BDFC79GG H97<BC@C;M CF CH<9F
=B7F95G98 75G< 5B8 BCB75G< 9LD9BG9G GI7< 5G GHC7?65G98 7CAD9BG5H=CB BM C: H<9 :CF9;C=B; :57HCFG
7CI@8<5FACIF:=B5B7=5@7CB8=H=CBCFDF9J9BHIG:FCA57<=9J=B;=ADFCJ9A9BHG=BCIF:=B5B7=5@7CB8=H=CB
5B8 CD9F5H=B; D9F:CFA5B79 H<5H 7CI@8 <5J9 CH<9FK=G9 699B 57<=9J98 6M IG CB 5 GH5B85@CB9 65G=G (IF
GHC7?<C@89FG A5M BCH <5J9 H<9 CDDCFHIB=HM HC F9J=9K JCH9 CB CF 9J5@I5H9 :IHIF9 57EI=G=H=CBG CF
=BJ9GHA9BHG
Our ability to acquire licenses to intellectual property, especially for sports titles, impacts our revenue and
profitability. Competition for these licenses may make them more expensive and increase our costs.
&5BMC:CIFDFC8I7HG5F965G98CBCF=B7CFDCF5H9=BH9@@97HI5@DFCD9FHMCKB986MCH<9FGCF9L5AD@9CIF
$,DCFHGDFC8I7HG=B7@I89F=;<HG@=79BG98:FCAA5>CFGDCFHG@95;I9G5B8D@5M9FG5GGC7=5H=CBG,=A=@5F@M
GCA9C:CIFCH<9FH=H@9G5F965G98CB@=79BG9GC:DCDI@5F9BH9FH5=BA9BHDFC8I7HGCAD9H=H=CB:CFH<9G9
@=79BG9G=G=BH9BG9":K95F9IB56@9HCA5=BH5=BH<9G9@=79BG9GCFC6H5=B588=H=CB5@@=79BG9GCBF95GCB56@9
97CBCA=7 H9FAG CF K=H< G=;B=:=75BH 7CAA9F7=5@ J5@I9 CIF F9J9BI9 5B8 DFC:=H56=@=HM 7CI@8 897@=B9
G=;B=:=75BH@MCAD9H=H=CB:CFH<9G9@=79BG9GA5M5@GC=B7F95G9H<958J5B79G;I5F5BH99G5B8FCM5@H=9GH<5H
K9 AIGH D5M HC H<9 @=79BGCF K<=7< 7CI@8 G=;B=:=75BH@M =B7F95G9 CIF 7CGHG 5B8 58J9FG9@M 5::97H CIF
DFC:=H56=@=HM"B588=H=CBCB79FH5=B=BH9@@97HI5@DFCD9FHM@=79BG9GK95F9GI6>97HHC;I5F5BH998A=B=AIA
D5MA9BHGFCM5@H=9GCFGH5B85F8GC:D9F:CFA5B795B8A5MBCH6956@9HCH9FA=B5H9H<9G95;F99A9BHGDF=CF
21