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16
Deferred revenues by platform for the years ended December 31, 2010, 2009, and 2008 was as follows (amounts in
millions):
Years Ended December 31,
2010 2009 2008
(Increase)
Decrease
2010 v 2009
(Increase)
Decrease
2009 v 2008
Deferred revenues by platform:
MMORPG ................................................................................... $(191) $93 $(145) $(284) $238
PC and other ................................................................................ (81) (49) (33) (32) (16)
Console
Sony PlayStation 3 ................................................................... (77) (259) (168) 182 (91)
Microsoft Xbox 360 ................................................................. (15) (284) (248) 269 (36)
Nintendo Wii ........................................................................... 16 2 (119) 14 121
Total console ................................................................................ (76) (541) (535) 465 (6)
Nintendo Dual Screen .............................................................. (8) — — (8) —
Other* .............................................................................................. — 1 17 (1) (16)
Total impact on consolidated net revenues ...................................... $(356) $(496) $(696) $140 $200
* Represents Non-Core activities, which are legacy Vivendi Games’ divisions or business units that we have exited,
divested or wound down as part of our restructuring and integration efforts as a result of the Business Combination.
Prior to July 1, 2009, Non-Core activities were managed as a stand-alone operating segment; however, in light of the
minimal activities and insignificance of Non-Core activities, as of that date we ceased their management as a
separate operating segment. Consequently, we are no longer providing separate operating segment disclosure and
have reclassified our prior periods’ segment presentation so that it conforms to the current period’s presentation.
Net revenues from MMORPG decreased slightly in 2010 as compared to 2009, primarily as a result of lower
deferred and boxed revenue recognized in 2010 due to the timing of expansion pack releases by Blizzard. While the World of
Warcraft: Wrath of the Lich King expansion pack launched in the fourth quarter of 2008 resulted in significant deferred
revenues that were recognized in 2009, the World of Warcraft: Cataclysm expansion pack launched in the fourth quarter of
2010, resulted in a lower percentage of deferred revenue recognized in 2010, with the majority of deferred revenues to be
recognized in 2011. This decrease in revenue was partially offset by higher revenues from sales of World of Warcraft’s
value-added services. Net revenues from PC and other increased in 2010 as compared to 2009, primarily as a result of the
release of StarCraft II: Wings of Liberty. Net revenues from Sony PlayStation 3 and Microsoft Xbox 360 increased in 2010
as compared to 2009, primarily as a result of the success of the Call of Duty franchise, in particular, the strength of Call of
Duty: Modern Warfare 2 and its associated map packs in downloadable content digital formats, and the strong consumer
demand for Call of Duty: Black Ops. Sony PlayStation 2 platform revenues continued to decline due to fewer titles published
on this platform given the aging lifecycle of the Sony PlayStation 2 platform as consumers are now almost fully transitioned
to the current-generation platforms. Net revenues from Nintendo Wii decreased in 2010 as compared to 2009, primarily due
to the weakness in the sales in casual and music genres. Net revenues from handheld devices decreased for the same period
primarily as a result of alternative handheld devices such as Apple’s iPhone, Apple’s iPad and other mobile devices, as well
as general weakness in the casual titles.
Regarding deferred revenues by platform, additional revenues were deferred in 2010 across MMORPG, PC and
other, Sony PlayStation 3 and the Microsoft Xbox 360 platforms driven by the successful releases of World of Warcraft:
Cataclysm, StarCraft II: Wings of Liberty and Call of Duty: Black Ops.
MMORPG net revenues increased in 2009 compared to 2008 as a result of the continued growth of the World of
Warcraft franchise and online value-added services. Net revenues from various consoles and handheld platforms increased,
except for PS2, in 2009 as compared to 2008 primarily as a result of the consummation of the Business Combination. The
increases in net revenues by platform in 2009 were also driven by the success of our Call of Duty franchise, in particular, Call
of Duty: Modern Warfare 2, on the Xbox360 and PS3 platforms. Partially offsetting the increase was the weaker sales of
casual games and games in the music genre as compared to the core games genre, which includes titles from the Call of Duty
franchise. The weaker sales in the casual games and music genres were due to extended economic weakness and competition
from emerging platforms, such as the iPhone and other community internet applications that accommodate gameplay. PS2
platform revenues declined due to the fewer titles published on this platform given aging lifecycle of the PS2 platform as
consumers transitioned to the current-generation platforms.