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34
In fiscal 2007, netsalesof video games for Xbox were primarily driven by thereleaseof Disney"Pixar’s
Cars,Destroy All Humans! 2 andsales of our catalog titles. We releasedthree and 11 new SKUs in fiscal
2007 and2006, respectively. Net sales decreased by $60.7 million in fiscal 2007 as compared to fiscal 2006
primarily due to fewer units sold of video games forXbox as consumer demand shifted to games for
Microsoft’s new generation console,Xbox360.
Nintendo WiiNet Sales (in thousands)
Year Ended
March 31, 2007 % of net sales
Year Ended
March 31, 2006 %of net sales %change
$30,025 2.9% $— —% —%
Nintendo launched its newgeneration console, Nintendo Wii (“Wii”) in November 2006. In fiscal2007, we
released four newSKUs, which accounted for all sales on Wii in fiscal 2007. Thegames releasedwere
Disney"Pixar’s Carsand threeNickelodeon titles: SpongeBob SquarePants: Creature from the Krusty Krab,
Avatar:The Last Airbender and Barnyard.We expect to continueto bring newtitlesto this platform as the
installed base of Wii continues to grow includingbringingWWE SmackDown vs. Raw2008 to Wii in fiscal
2008 as well as original content developed solely for Wii.
Nintendo GameCube Net Sales (in thousands)
Year Ended
March 31, 2007 % of net sales
Year Ended
March 31, 2006 %of net sales %change
$52,338 5.1%$59,255 7.3% (11.7)%
In fiscal 2007, net sales of video games for Nintendo GameCube (“GameCube”) were primarily driven by
sales of Disney"Pixar’sCars andour Nickelodeon titles,as wellassales of our catalogtitles. We released
eight and seven new SKUs in fiscal2007 and 2006,respectively.Net sales decreased by $6.9 million in fiscal
2007 as compared to fiscal 2006 primarily due to decreased sales of catalog titles in fiscal 2007 as
consumersshifted to thenew generation consoles. We expect net sales forGameCubeto continueto
decline in the future as consumer demand shifts to video games made for Wii.
Sony PlayStation 2NetSales (in thousands)
Year Ended
March 31, 2007 % of net sales
Year Ended
March 31, 2006 %of net sales %change
$304,91629.7% $296,294 36.7% 2.9%
In fiscal2007, net sales of video gamesfor PlayStation 2(“PS2”) were primarily driven by WWE
SmackDown vs. Raw 2007, Disney"Pixar’s Cars andsales of our Nickelodeon and catalog titles. We
released 11 and 12 new SKUs in fiscal 2007 and 2006, respectively. Net sales increased $8.6million in fiscal
2007 as comparedto fiscal 2006 primarily duetosales of Disney"Pixar’sCars as compared to sales of The
Incredibles: Rise of the Underminer in fiscal 2006, partiallyoffset by lower salesof catalog titles, which were
higher in fiscal 2006.Sony releasedits newgeneration console, PS3, in November 2006. We expect net
sales of games forPS2 to decline in the future as the installed base of PS3 grows.
Handheld Platforms
Netsales for handheldplatforms increased by 21% in fiscal 2007to$325.9millionfrom $269.9 million in
fiscal 2006. We released 27 and22 new handheldSKUs in fiscal 2007 and 2006, respectively. Consistent
with ourexpectations, net sales of games forNintendo’s Dual Screen (“DS”) and Sony’s PlayStation
Portable (“PSP”) continued to increasein fiscal 2007with the growthof the installed base,whilenetsales