Electronic Arts 2002 Annual Report Download - page 23

Personal Computer Product Net Revenues
The increase in sales of PC products for the twelve months ended March 31, 2002 compared to the same
period last year was primarily due to the continued strong sales of
The Sims ,which shipped over two years
ago. Key current year releases were
Harry Potter and the Sorcerer’s Stone , The Sims Hot Date Expansion
Pack
, Medal of Honor Allied Assault , Command & Conquer Renegade and Madden NFL 2002 .We released
16 PC titles in the twelve months ended March 31, 2002 compared to 18 in the same period last year.
The
Sims
continues to be the number one PC title and has now sold over six million copies. Due to the sales of
The Sims in fiscal 2002, we expect revenues from PC products to be flat or lower in fiscal 2003.
PlayStation Product Net Revenues
We released five PlayStation titles in the twelve months ended March 31, 2002 compared to 17 titles in the
same period last year. As expected, PlayStation sales decreased for the twelve months ended March 31,
2002 compared to the prior year primarily attributable to the transition to next generation console systems
and fewer titles released for the product during the current year.
Although our PlayStation products are playable on the PlayStation 2 console, we expect sales of cur-
rent PlayStation products to continue to decline significantly in fiscal 2003.
Under the terms of a licensing agreement entered into with Sony Computer Entertainment of America
in July 1994 (the “Sony Agreement”), as amended, we are authorized to develop and distribute CD-based
software products compatible with the PlayStation. Furthermore, under the terms of an additional licensing
agreement entered into with Sony Computer Entertainment of America as of April 2000 (the “PlayStation
2 Agreement”), as amended, we are authorized to develop and distribute DVD-based software products
compatible with the PlayStation 2. Pursuant to these agreements, we engage Sony to supply its PlayStation
and PlayStation 2 CDs and DVDs for distribution by us. Accordingly, we have limited ability to control our
supply of PlayStation and PlayStation 2 CD and DVD products or the timing of their delivery.
Xbox Net Revenues
Following the launch of the Xbox platform in North America in November 2001, we released our first ten
Xbox titles during fiscal 2002.Titles released included
Madden NFL 2002 , NBA Live 2002 , James Bond
007 in…Agent Under Fire
, NASCAR Thunder 2002 , NHL 2002 , Triple Play™2002 , SSX Tricky , Knock-
out Kings 2002
and F1 2001 .
Nintendo GameCube Net Revenues
We released our first five Nintendo GameCube titles, Madden NFL 2002 , James Bond 007 in…Agent
Under Fire
, SSX Tricky , NBA Street and FIFA Soccer 2002 ,during fiscal 2002 following the platform’s
launch in Japan in September 2001 and in North America in November 2001.
Game Boy Advance Net Revenues
We released our first three Game Boy Advance titles,
Harry Potter and the Sorcerer’s Stone , Madden NFL
2002
and NHL 2002 during fiscal 2002.
Game Boy Color Net Revenues
We released three Game Boy Color titles, Harry Potter and the Sorcerer’s Stone , Madden NFL 2002 and
The World is Not Enough during fiscal 2002.
Advertising Revenues
We commenced generating advertising revenues in the third quarter of fiscal year 2001 following the launch
of our gamesite on the world wide web and the AOL Games Channel in October 2000. In addition, we gener-
ated advertising revenue from Pogo’s websites subsequent to the purchase of Pogo in February 2001. As a
result of establishing our ad business in late fiscal 2001, we experienced significant revenue growth in fiscal
2002. Due to this and continuing uncertainties in the ad market, we will not be able to sustain the same
annual growth rate as experienced in fiscal 2002.
EA 2002 AR 19