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11
(3) Total non-GAAP net revenues presented also represents our total operating segment net revenues.
The increase in GAAP net revenues from retail channels for 2012 as compared to 2011 was the result of sales from the Skylanders
franchise (both from the launch of Skylanders Giants in the fourth quarter of 2012 and the full-year revenues from Skylanders Spyro’s Adventure,
which was launched in the fourth quarter of 2011) and revenues from Diablo III and World of Warcraft: Mists of Pandaria. The increase was
partially offset by lower catalog sales of Call of Duty and other titles, and lower catalog revenues generated from World of Warcraft: Cataclysm
and Starcraft II: Wings of Liberty, which were released in 2010.
The increase in GAAP net revenues from retail channels for 2011 as compared to 2010 was the result of the strong performance of the
Call of Duty franchise, recognition of deferred revenues from the 2010 launches of StarCraft II: Wings of Liberty and World of Warcraft:
Cataclysm, and revenues generated from the launch of Skylanders Spyro’s Adventure, partially offset by the release of fewer key titles.
The decrease in GAAP net revenues from digital online channels for 2012 as compared to 2011 was primarily due to lower revenues
from World of Warcraft subscriptions and lower net revenues from Call of Duty downloadable content packs released in 2012 for Call of Duty:
Modern Warfare 3, in comparison to downloadable content packs released in 2011 for Call of Duty®: Black Ops. The decrease was partially
offset by the full game download sales of Diablo III and World of Warcraft: Mists of Pandaria, and revenues from Call of Duty Elite
memberships.
The increase in GAAP net revenues from digital online channels for 2011 as compared to 2010 was primarily due to the stronger
performance and greater number of downloadable content packs for Call of Duty: Black Ops, which was released in 2011, as compared to the
downloadable content packs for Call of Duty: Modern Warfare® 2 released in the prior year, and a higher number of full game downloads from
the Call of Duty catalog titles. In addition, revenues generated from the World of Warcraft franchise, particularly from the digital release of
World of Warcraft: Cataclysm in December 2010, as well as the digital release of StarCraft II: Wings of Liberty in July 2010, resulted in more
deferred revenues recognized in 2011 as compared to 2010.
The increase in non-GAAP net revenues from retail channels for 2012 as compared to 2011 was the result of sales from the
Skylanders franchise (both from the launch of Skylanders Giants in the fourth quarter of 2012 and the full-year revenues from Skylanders Spyro’s
Adventure, which was launched in the fourth quarter of 2011), Diablo III and World of Warcraft: Mists of Pandaria. The increase was partially
offset by lower catalog sales of Call of Duty titles as well as other titles, and lower catalog revenues generated from World of Warcraft:
Cataclysm and Starcraft II: Wings of Liberty, which were released in 2010.
The decrease in non-GAAP net revenues from retail channels for 2011 as compared to 2010 was the result of our more focused slate,
with the release of fewer key titles, and lower revenues generated from the casual “value” titles. The decrease was partially offset by the strong
performance of the Call of Duty franchise and revenues generated from Skylanders Spyro’s Adventure.
The increase in non-GAAP net revenues from digital online channels for 2012 as compared to 2011 was attributable to sales of full
game digital downloads from the launches of World of Warcraft: Mists of Pandaria and Diablo III (which were launched in 2012) and
memberships revenues from Call of Duty Elite (which was launched in late November 2011). The increase was partially offset by lower revenues
from World of Warcraft subscriptions and lower net revenues from Call of Duty downloadable content packs.
The increase in non-GAAP net revenues from digital online channels for 2011 as compared to 2010 was attributable to the stronger
performance and greater number of downloadable content packs released in 2011 for Call of Duty: Black Ops, versus downloadable map packs
released in the prior year for Call of Duty: Modern Warfare 2, and a higher number of full game downloads from the Call of Duty catalog titles.
This increase was partially offset by the unfavorable impact of the decrease in World of Warcraft’s subscriber base, the decrease of full game
downloads of World of Warcraft: Cataclysm, which was released in December 2010, and StarCraft II: Wings of Liberty, which was released in
July 2010.