2K Sports 2009 Annual Report Download - page 7

645.5 million in 2008 to an estimated 462.6 million in 2013. Details on the estimated global sales value and
unit sales of console, handheld and PC software from 2008 through 2013 are as follows:
Global Sales of Console,
Handheld and PC Software* 2008 2009E 2010E 2011E 2012E 2013E
Sales Value (in $US, millions) $27,714 $24,255 $21,915 $18,638 $17,279 $16,727
Units Sold (in millions) 645.5 604.1 583.6 527.4 493.2 462.6
* Sales data and forecasts for North America, Europe, and Japan including PC and current and next generation console and handheld
platforms.
Source: International Development Group, November 2009
Our distribution business, which consists of our Jack of All Games subsidiary, distributes our products as
well as software, hardware, and accessories produced by others to retail outlets in North America. Revenue
in our distribution business is derived from the sale of third party software titles, accessories and hardware
in North America. Operating margins in our distribution business depend in large part on the mix of
software and hardware sales, with software sales generally yielding higher margins than hardware. In
September 2008, we agreed to outsource the pick, pack, ship and warehousing functions for our publishing
and distribution businesses to a third party logistics management solutions provider. Additionally, we
adopted a plan to reduce the number of units held in inventory in order to focus on higher margin titles
and improve the operating efficiency of the business. We also sold certain assets of our U.S. based
distribution business to the third party logistics management solutions provider.
We were incorporated under the laws of the State of Delaware in 1993 and are headquartered in New
York, New York with 2,263 employees globally. Our telephone number is [phone] and our website
address is www.take2games.com. We make all of our filings with the Securities and Exchange Commission
(‘‘SEC’’) available free of charge on our website under the caption ‘‘Corporate—Corporate Overview—
SEC Filings.’’ Included in these filings are our annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and amendments to those reports, which are available as soon as
reasonably practicable after we electronically file or furnish such materials with the SEC pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934.
Our website and the information contained therein or connected thereto are not intended to be
incorporated into this Annual Report on Form 10-K. You may also obtain copies of our reports without
charge by writing to:
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012
Attn: Investor Relations
You may read and copy any document we file with the SEC at the SEC’s public reference room at 100 F
Street, NE, Room 1580, Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for information on
the public reference room. The SEC maintains a website that contains annual, quarterly and current
reports, proxy and information statements and other information that issuers (including the Company) file
electronically with the SEC. The SEC’s website is www.sec.gov.
Strategy
Overview. We endeavor to be the most creative, innovative and efficient company in our industry. Our
strategy is to capitalize on the interactive entertainment market, particularly the expanding demographics
of video game players, and focus on creating premium quality games and successful franchises for which we
can create sequels. We develop most of our frontline products internally and own the intellectual property
associated with most of our titles, which we believe best positions us financially and competitively. We have
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