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14
Results of Operations—Years Ended December 31, 2010, 2009, and 2008
Net Revenues by Geographic Region
The following table details our consolidated net revenues by geographic region for the years ended December 31,
2010, 2009, and 2008 (amounts in millions):
For the Years Ended December 31,
2010 2009 2008
Increase/
(decrease)
2010 v 2009
Increase/
(decrease)
2009 v 2008
Geographic region net revenues:
North America .................................................................. $2,409 $2,217 $1,494 $192 $723
Europe ............................................................................... 1,743 1,798 1,288 (55) 510
Asia Pacific ....................................................................... 295 263 227 32 36
Total geographic area net revenues ....................................... 4,447 4,278 3,009 169 1,269
Other* ................................................................................... — 1 17 (1) (16)
Consolidated net revenues .................................................... $4,447 $4,279 $3,026 $168 $1,253
The (increase)/decrease in deferred revenues by geographic region for the years ended December 31, 2010, 2009,
and 2008 was as follows (amounts in millions):
For the Years Ended December 31,
2010 2009 2008
(Increase)/
Decrease
2010 v 2009
(Increase)/
Decrease
2009 v 2008
Deferred revenues by geographic region:
North America .................................................................. $(166) $(241) $(457) $75 $216
Europe ............................................................................... (159) (224) (234) 65 10
Asia Pacific ....................................................................... (31) (32) (22) 1 (10)
Total change in deferred revenues by
geographic region ............................................................. (356) (497) (713) 141 216
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.
Consolidated net revenues increased in North America and Asia Pacific in 2010 as compared to the same period in
2009, primarily due to the success of the Call of Duty franchise, particularly the release of Call of Duty: Black Ops in the
fourth quarter of 2010 and continued strong performance of Call of Duty: Modern Warfare 2 during the year and the release
of World of Warcraft: Cataclysm and StarCraft II: Wings of Liberty in the fourth and third quarters of 2010, respectively, as
well as higher revenues from sales of World of Warcraft’s value-added services. The increase in consolidated net revenues in
Asia Pacific was also attributable to the China region business being back online for the full year of 2010 and its continued
growth with the successful launch of World of Warcraft: Wrath of the Lich King in China in August 2010. The increase in
consolidated net revenues for North America was partially offset by the impact of fewer titles released in 2010 and the
weaker sales of games in the music and casual genres. Consolidated net revenues for Europe decreased in 2010 as compared
to 2009, primarily as a result of unfavorable foreign exchange effects and the greater impact on the decrease in sales of games
in the music and casual genres. The decrease was partially offset by the strong performance of the Call of Duty franchise in
Europe, the release of World of Warcraft: Cataclysm and StarCraft II and continued growth in World of Warcraft’s
value-added services.