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42
In November 2005, Microsoft launched its newgeneration console,Xbox 360, in North America, Europe
andJapan.
Nintendo GameCube Net Sales (in thousands)
Year Ended
March 31, 2006 % of net sales
Year Ended
March 31, 2005 %of net sales %change
$59,255 7.3%$73,157 9.7% (19.0)%
In fiscal 2006, net sales of videogames for GameCube were primarily driven by the releaseofWWE®Day
of Reckoning™2, SpongeBob SquarePants: Lights, Camera, PANTS!,Nicktoons: Unite and The Incredibles:
Rise of theUnderminer ,as well as catalog sales. In fiscal2005, netsales of video gamesfor GameCube were
primarily driven by therelease of TheIncredibles, WWE Dayof Reckoningand The SpongeBob SquarePants
Movie.We released sevenand eight newSKUs in fiscal 2006 and 2005,respectively. Net sales decreased by
$13.9 millioninfiscal2006 as compared to fiscal 2005 primarily due to:
•lower salesofour fiscal 2006 releases of The Incredibles: Rise of the Underminerand SpongeBob
SquarePants: Lights,Camera,PANTS! as compared to fiscal 2005 releases of The Incredibles and The
SpongeBob SquarePants Movie, both which were released in conjunction with their respective movie
releases;
•lower sales of our fiscal 2006 release of WWE Dayof Reckoning 2,as compared to WWE Day of
Reckoningin fiscal2005;
•partiallyoffset by salesof ourfiscal2006release of Bratz: RockAngelz with no comparable titlein
fiscal 2005.
Handheld Platforms
Net salesfor handheld platforms increased 16%forfiscal2006 as compared to fiscal2005.Wereleased 22
and 20 new handheldSKUs in fiscal 2006 and2005,respectively.Both Nintendo and Sony have launched
newhandheld platforms, Dual Screen(“DS”) and PlayStation Portable (“PSP”), respectively.Consistent
with ourexpectations, net sales of games for those new platforms increased in fiscal 2006, while net sales of
games for Game Boy Advance declined.
Nintendo Game Boy Advance Net Sales(in thousands)
Year Ended
March 31, 2006 % of net sales
Year Ended
March 31, 2005 %of net sales %change
$171,47721.3% $204,348 27.0% (16.1)%
In fiscal 2006, net sales of video gamesfor Game Boy Advance were primarily driven by therelease of
Bratz: RockAngelz,SpongeBob SquarePants: Lights, Camera, PANTS! and TheIncredibles:Riseofthe
Underminer,aswell as sales of ourGame BoyAdvanceDoublePacks. Game BoyAdvanceDoublePacks
featuretwo previouslyreleasedtitleson onecartridge, providing us with away to reintroduce ourtop
sellingmass-market titles. In fiscal 2005, net sales of video games for Game Boy Advance were primarily
drivenby the release of The Incredibles,The SpongeBob SquarePants Movie andSonic Advance 3 ,as well as
catalog titles. We released 10 and19 new SKUs in fiscal 2006 and 2005, respectively. Net sales decreased
by $32.9 million in fiscal2006as compared to fiscal 2005 primarily due to:
•lower sales on our fiscal 2006 releases of The Incredibles: Rise of the Underminerand SpongeBob
SquarePants: Lights,Camera,PANTS! as compared to fiscal 2005 releases of The Incredibles and The