EA Reports Fourth Quarter and Fiscal Year 2008 Results

Full Year Results

Net revenue for the fiscal year ended March 31, 2008 was $3.665 billion, up 19 percent as compared with $3.091 billion for the prior year. Beginning in fiscal 2008, EA no longer charges for its service related to certain online-enabled packaged goods games. As a result, the Company recognizes revenue from the sale of these games over the estimated service period. The Company ended the year with $387 million in deferred net revenue related to its service for certain online-enabled packaged goods games, which will be recognized in future periods.

Non-GAAP net revenue(1) was $4.020 billion, up 30 percent as compared with $3.091 billion for the prior year.

EA had 27 titles that sold more than one million copies in the year as compared with 24 titles in the prior year.

Net loss for the year was $454 million as compared with net income of $76 million for the prior year. Diluted loss per share was $1.45 as compared with diluted earnings per share of $0.24 for the prior year.

Non-GAAP net income(1) was $339 million as compared with $247 million a year ago, up 37 percent year-over-year. Non-GAAP diluted earnings per share were $1.06 as compared with $0.78 for the prior year.

Trailing-twelve-month operating cash flow was $338 million as compared with $397 million a year ago. The Company ended the year with cash and short-term investments of $2.287 billion.

Fiscal Fourth Quarter Results (comparisons are to the quarter ended March 31, 2007)

Net revenue for the fourth quarter was $1.127 billion, up 84 percent as compared with $613 million for the prior year. During the quarter, EA had a net benefit of $208 million related to the recognition of deferred net revenue for certain online enabled packaged goods games.

Non-GAAP net revenue(1) was $919 million, up 50 percent as compared with $613 million for the prior year. Sales were driven by the launches of ARMY OF TWO(TM) and Burnout(TM) Paradise as well as the continued strength of Rock Band(TM).

Net loss for the quarter was $94 million as compared with a net loss of $25 million for the prior year. Diluted loss per share was $0.30 as compared with diluted loss per share of $0.08 for the prior year.

Non-GAAP net income(1) was $30 million as compared with $19 million a year ago. Non-GAAP diluted earnings per share were $0.09 as compared with $0.06 for the prior year.

"A year ago, we committed to an aggressive change agenda at EA. Our employees stepped up to the challenge and we finished fiscal year 2008 with non-GAAP revenue up 30% to $4 billion -- a record for any third-party publisher. Our operating margins were flat to our prior year. On balance, we're very pleased with our revenue growth, but not yet happy with our profit margins," said John Riccitiello, Chief Executive Officer. "In fiscal 2009, we expect to deliver another $1 billion in revenue growth and to double our operating profit on the strength of our slate of titles."

Highlights for the Year (comparisons are to the fiscal year ended March 31, 2007)

-- In fiscal 2008, EA was the number one publisher across all platforms in North America with 19 percent share and in Europe with 20 percent share.

-- On the Wii(TM), EA was the number one third-party publisher in Europe in fiscal 2008 with 15 percent share -- up eight points from a year ago; in North America, EA had 11 percent share -- up one point from a year ago.

-- EA Partners posted its strongest year ever driven by Rock Band and Half Life(R) 2: Orange Box.

-- EA had 15 double platinum (sold over 2 million copies) titles in the year -- up from ten a year ago.

-- The Sims(TM) franchise sold over 100 million copies life to date.

-- EA strengthened its wholly-owned portfolio -- by launching six new games -- MySims(TM), ARMY OF TWO, SKATE, Boogie(TM), EA Playground(TM) and Smarty Pants(TM).

-- Burnout Paradise, ARMY OF TWO and the recently launched Boom Blox(TM) debuted with strong quality ratings from critics.

-- Pogo(TM) has surpassed the $100 million mark in revenue - growing 41 percent year-over-year.

-- EA signed an agreement with Hasbro for the exclusive rights to create digital games based upon intellectual properties including MONOPOLY, SCRABBLE, YAHTZEE, NERF, TONKA and LITTLEST PET SHOP.

-- EA acquired BioWare Corp.(TM) and Pandemic(TM) Studios in January 2008, adding strong development talent and ten new franchises.

-- EA's December 2007 employee satisfaction survey showed significant improvement over the last appraisal in 2004. Results included a double-digit gain in employee engagement.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of May 13, 2008. Results may be materially different and are affected by many factors, including: development delays on EA's products; competition in the industry; changes in anticipated costs, expected savings and impact on EA's operations of the Company's reorganization plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; consumer demand for games for legacy consoles, particularly the PlayStation(R)2; the financial impact of potential future acquisitions by EA, including the potential acquisition of Take-Two Interactive Software, Inc.; the popular appeal of EA's products; changes in foreign exchange rates; the overall global economy; EA's effective tax rate; and other factors detailed in this release and in EA's annual and quarterly SEC filings.

Fiscal Year Expectations - Ending March 31, 2009
-- GAAP net revenue is expected to be between $4.9 and $5.15 billion.
-- Non-GAAP net revenue(1) is expected to be between $5.0 and $5.3
billion.
-- GAAP diluted earnings per share are expected to be between $0.25
and $0.52.
-- Non-GAAP diluted earnings per share(1) are expected to be between
$1.30 and $1.70.
-- Expected non-GAAP net income(1) excludes the following pre-tax
items from expected GAAP net income:
-- $100 to $150 million for the impact of the change in deferred
net revenue (packaged goods and digital content),
-- $240 million of estimated stock-based compensation,
-- $65 million of amortization of intangible assets, and
-- $25 million of restructuring charges.
-- Non-GAAP tax expense is expected to be $85 to $95 million higher
than GAAP tax expense.

Beginning in fiscal 2009, the Company will use a long-term normalized tax rate for evaluating operating performance, as well as planning, forecasting and analyzing future periods, and assessing the performance of its management team. Based on its current long-term projections, the Company intends to use a long-term normalized non-GAAP tax rate of 28 percent.

Conference Call

Electronic Arts will host a conference call today at 2:00 pm PT (5:00 pm ET) to review its results for the fourth quarter and fiscal 2008 ended March 31, 2008 and its outlook for the future. During the course of the call, Electronic Arts may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number: (877) 856-1960, access code 220497, or via webcast: http://investor.ea.com.

A dial-in replay of the conference call will be provided until May 20, 2008 at (719) 457-0820, access code 220497. A webcast archive of the conference call will be available for one year at http://investor.ea.com.

(1) Non-GAAP Financial Measures

To supplement the Company's unaudited condensed consolidated financial statements presented in accordance with GAAP, Electronic Arts uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Electronic Arts include: non-GAAP net revenue, non-GAAP gross profit, non-GAAP operating income (loss), non-GAAP net income (loss) and historical and estimated non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude the following items, if any, from the Company's unaudited condensed consolidated statements of operations:

-- Change in deferred net revenue (packaged goods and digital content)

-- Acquisition-related charges

-- Amortization of intangibles

-- Certain litigation expenses

-- Losses on strategic investments

-- Restructuring charges

-- Stock-based compensation

-- Income tax adjustments

Through the end of fiscal 2008, Electronic Arts made certain income tax adjustments to its non-GAAP financial measures to reflect the income tax effects of each of the items it excluded from its pre-tax non-GAAP financial measures, as well as certain discrete one-time income tax adjustments. This approach was consistent with how the Company evaluated operating performance, planned, forecasted and analyzed future periods, and assessed the performance of its management team.

Beginning in fiscal 2009, the Company will use a long-term normalized tax rate for evaluating operating performance, as well as planning, forecasting and analyzing future periods, and assessing the performance of its management team. Based on its current long-term projections, the Company intends to use a long-term normalized non-GAAP tax rate of 28 percent.

Electronic Arts may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses.

Electronic Arts believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company's performance by excluding certain items that may not be indicative of the Company's core business, operating results or future outlook. Electronic Arts' management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company's operating results both as a consolidated entity and at the business unit level, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods.

In addition to the reasons stated above, which are generally applicable to each of the items Electronic Arts excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude certain items for the following reasons:

Amortization of Intangibles. When analyzing the operating performance of an acquired entity, Electronic Arts' management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any allocations made for accounting purposes. Because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets (including acquired in-process technology and goodwill), when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of acquired intangible assets to its financial results. Electronic Arts believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

In addition, in accordance with GAAP, Electronic Arts generally recognizes expenses for internally-developed intangible assets as they are incurred, notwithstanding the potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also in accordance with GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an expense over the useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology, which is expensed immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of comparability between the financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly, Electronic Arts believes it is useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that excludes the amortization of acquired intangibles.

Stock-Based Compensation. Electronic Arts adopted SFAS 123(R), "Share-Based Payment" beginning in its fiscal year 2007. When evaluating the performance of its individual business units, the Company does not consider stock-based compensation charges. Likewise, the Company's management teams exclude stock-based compensation expense from their short and long-term operating plans. In contrast, the Company's management teams are held accountable for cash-based compensation and such amounts are included in their operating plans. Further, when considering the impact of equity award grants, Electronic Arts places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.

Video game platforms have historically had a life cycle of four to six years, which causes the video game software market to be cyclical. The Company's management analyzes its business and operating performance in the context of these business cycles, comparing Electronic Arts' performance at similar stages of different cycles. For comparability purposes, Electronic Arts believes it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of its core business.

Restructuring Charges. Although Electronic Arts has engaged in various restructuring activities in the past, each has been a discrete, extraordinary event based on a unique set of business objectives. Each of these restructurings has been unlike its predecessors in terms of its operational implementation, business impact and scope. The Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures.

Change in Deferred Net Revenue (Packaged Goods and Digital Content). Beginning in fiscal 2008, Electronic Arts was no longer able to objectively determine the fair value of the online service included in certain of its packaged goods games and online content. As a result, the Company began recognizing the revenue from the sale of these games and content over the estimated online service period. Although Electronic Arts defers the recognition of a significant portion of its net revenue as a result of this change, there has been no adverse impact to its operating cash flow. Internally, Electronic Arts' management excludes the impact of the change in deferred net revenue related to packaged goods games and digital content in its non-GAAP financial measures when evaluating the Company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. The Company believes that excluding the impact of the change in deferred net revenue from its operating results is important to facilitate comparisons to prior periods during which the Company was able to objectively determine the fair value of the online service and not delay the recognition of significant amounts of net revenue related to online-enabled packaged goods.

In the financial tables below, Electronic Arts has provided a reconciliation of the most comparable GAAP financial measure to each of the historical non-GAAP financial measures used in this press release.

Forward-Looking Statements

Some statements set forth in this release, including the estimates under the headings "Business Outlook" contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from its expectations include the following: timely development and release of Electronic Arts' products; competition in the interactive entertainment industry; the Company's ability to successfully implement its reorganization plans; the consumer demand for, and the availability of an adequate supply of console hardware units (including the Xbox 360(TM) video game and entertainment system, the PLAYSTATION(R)3 computer entertainment system and the Wii(TM)); consumer demand for software for legacy consoles, particularly the PlayStation 2; the Company's ability to predict consumer preferences among competing hardware platforms; the financial impact of potential future acquisitions by EA, including the potential acquisition of Take-Two Interactive Software, Inc.; the Company's ability to realize the anticipated benefits of its acquisition of VG Holding Corp.; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; the Company's ability to manage expenses during fiscal year 2009 and beyond; the Company's ability to attract and retain key personnel; changes in the Company's effective tax rates; the performance of strategic investments; adoption of new accounting regulations and standards; potential regulation of the Company's products in key territories; developments in the law regarding protection of the Company's products; fluctuations in foreign exchange rates; the Company's ability to secure licenses to valuable entertainment properties on favorable terms; and other factors described in the Company's Annual Report on Form 10-K for the year ended March 31, 2007 and Quarterly Report for the quarter ended December 31, 2007. These forward-looking statements speak only as of May 13, 2008. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements, including those made under the heading "Business Outlook". In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2008. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2008.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS(TM), EA(TM), EA SPORTS Freestyle(TM) and POGO(TM). In fiscal 2008, EA posted GAAP net revenue of $3.67 billion and had 27 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

EA, EA SPORTS, EA SPORTS Freestyle, POGO, Boogie, Boom Blox, EA Playground, Smarty Pants Army of Two, Burnout and Pandemic are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. BioWare Corp. is a trademark or registered trademark of EA International (Studio and Publishing) Ltd. HASBRO, MONOPOLY, SCRABBLE, NERF, TONKA, YAHTZEE and LITTLEST PET SHOP are trademarks of Hasbro and are used with permission. (C)2008 Hasbro. All Rights Reserved. Half-Life is a trademark or registered trademark of Valve Corporation in the U.S. and/or other countries. Rock Band is a trademark of Harmonix Music Systems, Inc., a division of MTV Networks. "PlayStation" is a registered trademark of Sony Computer Entertainment Inc. Wii is a trademark of Nintendo. All other trademarks are the property of their respective owners.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in millions, except per share data)

Three Months Ended Twelve Months Ended
March 31, March 31,
------------------ -------------------
2008 2007 2008 2007 (a)
---------- ------- -------- ----------
Net revenue $1,127 $ 613 $3,665 $ 3,091
Cost of goods sold 462 235 1,805 1,212
---------- ------- -------- ----------
Gross profit 665 378 1,860 1,879

Operating expenses:
Marketing and sales 128 116 588 466
General and administrative 89 66 339 288
Research and development 316 257 1,145 1,041
Amortization of
intangibles 13 7 34 27
Acquired in-process
technology 138 - 138 3
Restructuring charges 18 3 103 15
---------- ------- -------- ----------
Total operating
expenses 702 449 2,347 1,840
---------- ------- -------- ----------

Operating income (loss) (37) (71) (487) 39

Losses on strategic
investments (106) - (118) -
Interest and other income, net 7 30 98 99
---------- ------- -------- ----------

Income (loss) before provision for
(benefit from) income
taxes and minority
interest (136) (41) (507) 138

Provision for (benefit from)
income taxes (42) (16) (53) 66
---------- ------- -------- ----------

Income (loss) before minority
interest (94) (25) (454) 72

Minority interest - - - 4
---------- ------- -------- ----------

Net income (loss) $ (94) $ (25) $ (454) $ 76
========== ======= ======== ==========

Earnings (loss) per share:
Basic $(0.30) $(0.08) $(1.45) $ 0.25
Diluted $(0.30) $(0.08) $(1.45) $ 0.24

Number of shares used in
computation:
Basic 317 310 314 308
Diluted 317 310 314 317

Non-GAAP Results (in millions, except per
share data)

The following tables reconcile the Company's net income (loss) and
diluted earnings (loss) per share as presented in its Unaudited
Condensed Consolidated Statements of Operations as prepared in
accordance with Generally Accepted Accounting Principles ("GAAP") to
its non-GAAP net income and non-GAAP diluted earnings per share. The
Company's non-GAAP results exclude the following, if any: the impact
of the change in deferred net revenue (packaged goods and digital
content), acquisition-related expenses (such as acquired in-process
technology and amortization of intangibles), certain litigation
expenses, losses on strategic investments, restructuring charges, and
stock-based compensation. In addition, the Company's non-GAAP results
exclude income tax adjustments consisting of the income tax expense
associated with the foregoing excluded items and the impact of
certain one-time income tax adjustments.

Three Months Ended Twelve Months Ended
March 31, March 31,
------------------ -------------------
2008 2007 2008 2007
---------- ------- -------- ----------
Net income (loss) $ (94) $ (25) $ (454) $ 76

Change in deferred net
revenue
(packaged goods and
digital content) (b) (208) 355
Acquired in-process
technology 138 - 138 3
Amortization of intangibles 13 7 34 27
COGS amortization of
intangibles 6 7 26 27
Losses on strategic
investments 106 - 118 -
Restructuring charges 18 3 103 15
Stock-based compensation 45 28 150 133
Income tax adjustments 6 (1) (131) (34)
---------- ------- -------- ----------

Non-GAAP net income $ 30 $ 19 $ 339 $ 247
========== ======= ======== ==========

Non-GAAP diluted earnings per
share $ 0.09 $ 0.06 $ 1.06 $ 0.78
Shares used in non-GAAP diluted
earnings
per share computation 323 319 321 317

(a) Derived from audited financial statements.

(b) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in millions)


March 31, March 31,
2008 2007 (a)
--------- ----------
ASSETS

Current assets:
Cash, cash equivalents and short-term
investments $ 2,287 $ 2,635
Marketable equity securities 729 341
Receivables, net of allowances of $238 and
$214, respectively 306 256
Inventories 168 62
Deferred income taxes, net 145 84
Other current assets 290 219
--------- ----------
Total current assets 3,925 3,597

Property and equipment, net 396 484
Goodwill 1,152 734
Other intangibles, net 265 210
Deferred income taxes, net 164 25
Other assets 157 96
--------- ----------
TOTAL ASSETS $ 6,059 $ 5,146
========= ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 229 $ 180
Accrued and other current liabilities 683 814
Deferred net revenue (packaged goods and
digital content) 387 32
--------- ----------
Total current liabilities 1,299 1,026

Income tax obligations 319 -
Deferred income taxes, net 5 8
Other liabilities 97 80
--------- ----------
Total liabilities 1,720 1,114

Stockholders' equity:
Common stock 3 3
Paid-in capital 1,864 1,412
Retained earnings 1,888 2,323
Accumulated other comprehensive income 584 294
--------- ----------
Total stockholders' equity 4,339 4,032
--------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,059 $ 5,146
========= ==========

(a) Derived from audited financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(in millions)


Three Months Ended Twelve Months Ended
March 31, March 31,
------------------ -------------------
2008 2007 2008 2007 (a)
---------- ------- -------- ----------
OPERATING ACTIVITIES
Net income (loss) $ (94) $ (25) $ (454) $ 76
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation, amortization
and accretion, net 50 37 164 147
Stock-based compensation 45 28 150 133
Minority interest - - - (4)
Non-cash restructuring
charges 14 - 56 -
Net losses on investments
and sale of property and
equipment 103 - 111 1
Acquired in-process
technology 138 - 138 3
Change in assets and
liabilities:
Receivables, net 531 320 (8) (18)
Inventories 8 19 (100) 12
Other assets 48 (17) (8) 46
Accounts payable (146) (3) 23 (2)
Accrued and other
liabilities (112) (126) 71 34
Deferred income taxes,
net (92) (19) (160) (54)
Deferred net revenue
(packaged goods and
digital content) (208) - 355 23
---------- ------- -------- ----------
Net cash provided by operating
activities 285 214 338 397
---------- ------- -------- ----------

INVESTING ACTIVITIES
Capital expenditures (22) (60) (84) (176)
Purchase of marketable
equity securities and
other investments - - (275) (1)
Proceeds from maturities
and sales of short-term
investments 328 404 2,306 1,315
Purchase of short-term
investments (349) (434) (1,739) (1,522)
Loan advance - - (30) -
Acquisition of
subsidiaries, net of cash
acquired (607) (9) (607) (103)
---------- ------- -------- ----------
Net cash used in investing
activities (650) (99) (429) (487)
---------- ------- -------- ----------

FINANCING ACTIVITIES
Proceeds from issuance of
common stock 32 35 192 168
Excess tax benefit from
stock-based compensation 6 9 51 36
Repayment of note assumed
in connection with
acquisition - - - (14)
---------- ------- -------- ----------
Net cash provided by financing
activities 38 44 243 190
---------- ------- -------- ----------

Effect of foreign exchange on
cash and cash equivalents 2 13 30 29
---------- ------- -------- ----------
Increase (decrease) in cash and
cash equivalents (325) 172 182 129
Beginning cash and cash
equivalents 1,878 1,199 1,371 1,242
---------- ------- -------- ----------
Ending cash and cash
equivalents 1,553 1,371 1,553 1,371
Short-term investments 734 1,264 734 1,264
---------- ------- -------- ----------
Ending cash, cash equivalents
and short-term investments $ 2,287 $2,635 $ 2,287 $ 2,635
========== ======= ======== ==========

(a) Derived from audited financial statements.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in millions, except per share data, SKU count and Headcount)


Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
-------- -------- -------- -------- -------- -------

CONSOLIDATED
FINANCIAL DATA
Net revenue 613 395 640 1,503 1,127 84%
Net revenue -
trailing twelve
months ("TTM") 3,091 3,073 2,929 3,151 3,665 19%

Gross profit 378 229 245 721 665 76%
Gross margin -
% of net
revenue 62% 58% 38% 48% 59%
Gross profit -
TTM 1,879 1,863 1,663 1,573 1,860 (1%)
Gross margin -
TTM % of net
revenue 61% 61% 57% 50% 51%

Operating income
(loss) (71) (183) (274) 7 (37) 48%
Operating
income (loss)
margin - % of
net revenue (12%) (46%) (43%) - (3%)
Operating income
(loss) - TTM 39 (25) (313) (521) (487) (1349%)
Operating
income (loss)
margin - TTM %
of net revenue 1% (1%) (11%) (17%) (13%)

Net loss (25) (132) (195) (33) (94) (276%)
Diluted loss
per share ($0.08) ($0.42) ($0.62) ($0.10) ($0.30) (275%)
Net income
(loss) - TTM 76 25 (192) (385) (454) (697%)
Diluted
earnings
(loss) per
share - TTM $0.24 $0.07 ($0.62) ($1.22) ($1.45) (704%)

CASH FLOW DATA
Operating cash
flow 214 (192) (104) 349 285 33%
Operating cash
flow - TTM 397 243 145 267 338 (15%)

Capital
expenditures 60 14 23 25 22 (63%)
Capital
expenditures -
TTM 176 154 129 122 84 (52%)

BALANCE SHEET
DATA
Cash, cash
equivalents and
short-term
investments 2,635 2,189 2,176 2,583 2,287 (13%)
Marketable
equity
securities 341 660 716 837 729 114%
Receivables, net 256 123 424 830 306 20%
Inventories 62 74 103 178 168 171%
Deferred net
revenue
(packaged goods
and digital
content) (a)
End of the
quarter 32 68 364 595 387
Less: Beginning
of the quarter - 32 68 364 595
-------- -------- -------- -------- --------
Change in
deferred net
revenue
(packaged
goods and
digital
content) 32 36 296 231 (208)

STOCK-BASED
COMPENSATION
Cost of goods
sold 1 - 1 1 -
Marketing and
sales 3 4 5 5 5
General and
administrative 7 8 10 11 9
Research and
development 17 16 22 21 31
-------- -------- -------- -------- --------
Total Stock-
Based
Compensation 28 28 38 38 45

STOCK-BASED
COMPENSATION -
as a % of Net
Revenue
Marketing and
sales 1% 1% 1% 1% -
General and
administrative 1% 2% 2% 1% 1%
Research and
development 3% 4% 3% 1% 3%
-------- -------- -------- -------- --------
Total Stock-
Based
Compensation 5% 7% 6% 3% 4%

OTHER
Employees 7,893 8,101 8,239 8,165 9,037 14%
Diluted
weighted-
average shares 310 311 313 315 317

GEOGRAPHIC NET
REVENUE MIX
North America 307 163 362 768 649 111%
International 306 232 278 735 478 56%

Europe 264 204 246 668 421 59%
Asia 42 28 32 67 57 36%
-------- -------- -------- -------- --------
Net Revenue 613 395 640 1,503 1,127 84%

GEOGRAPHIC NET
REVENUE MIX - as
a % of Net
Revenue
North America 50% 41% 57% 51% 58%
International 50% 59% 43% 49% 42%

Europe 43% 52% 38% 44% 37%
Asia 7% 7% 5% 5% 5%
-------- -------- -------- -------- --------
Net Revenue 100% 100% 100% 100% 100%

(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Financial Information and Business Metrics
(in millions, except per share data, SKU count and Headcount)


Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
----- ---- ---- ----- ----- ------

PLATFORM NET REVENUE MIX
PlayStation 2 117 61 73 301 166 42%
PLAYSTATION 3 52 13 17 102 152 192%
Xbox 360 82 47 218 196 128 56%
Wii 36 29 59 139 75 108%
Xbox 7 3 12 3 1 (86%)
Nintendo GameCube 4 1 3 1 - (100%)
----- ---- ---- ----- -----
Total Consoles 298 154 382 742 522 75%

PC 128 89 79 148 114 (11%)

PSP 39 21 21 74 69 77%
Nintendo DS 27 25 47 122 36 33%
Cellular Handsets 36 33 37 38 41 14%
Game Boy Advance 3 2 4 2 - (100%)
----- ---- ---- ----- -----
Total Mobility 105 81 109 236 146 39%

Co-publishing and
Distribution 45 39 33 320 295 556%

Licensing, Advertising &
Other 13 9 14 34 27 108%
Subscription Services 24 23 23 23 23 (4%)
----- ---- ---- ----- -----
Total Internet
Services, Licensing &
Other 37 32 37 57 50 35%
----- ---- ---- ----- -----

Net Revenue 613 395 640 1,503 1,127 84%
===== ==== ==== ===== =====

PLATFORM NET REVENUE MIX - as a % of Net Revenue
PlayStation 2 19% 16% 11% 20% 15%
PLAYSTATION 3 9% 3% 3% 7% 14%
Xbox 360 13% 12% 34% 13% 11%
Wii 6% 7% 9% 9% 7%
Xbox 1% 1% 2% - -
Nintendo GameCube 1% - 1% - -
------ ----- ----- ------ ------
Total Consoles 49% 39% 60% 49% 47%

PC 21% 23% 12% 10% 10%

PSP 6% 5% 3% 5% 6%
Nintendo DS 5% 6% 7% 8% 3%
Cellular Handsets 6% 8% 6% 3% 4%
Game Boy Advance - 1% 1% - -
------ ----- ----- ------ ------
Total Mobility 17% 20% 17% 16% 13%

Co-publishing and
Distribution 7% 10% 5% 21% 26%

Licensing, Advertising &
Other 2% 2% 2% 2% 2%
Subscription Services 4% 6% 4% 2% 2%
------ ----- ----- ------ ------
Total Internet
Services, Licensing
& Other 6% 8% 6% 4% 4%
------ ----- ----- ------ ------

Net Revenue 100% 100% 100% 100% 100%
====== ===== ===== ====== ======



PLATFORM SKU RELEASE MIX (a)
PlayStation 2 6 1 7 7 - (100%)
PLAYSTATION 3 3 1 7 5 4 33%
Xbox 360 4 2 8 5 4 -
Wii 4 2 5 7 - (100%)
Xbox - - 2 - - -
Nintendo GameCube - - 1 - - -
----- ---- ---- ----- -----
Total Consoles 17 6 30 24 8 (53%)

PC 6 5 7 4 5 (17%)

PSP 2 1 3 4 1 (50%)
Nintendo DS 2 2 4 5 1 (50%)
Game Boy Advance - - 1 - - -
----- ---- ---- ----- -----
Total Mobility 4 3 8 9 2 (50%)
----- ---- ---- ----- -----

Total SKUs 27 14 45 37 15 (44%)
===== ==== ==== ===== =====

(a) Mac(R), Cellular Handsets, iPod(R) nano, and iPod(R) classic are
not included in SKU count.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Fact Sheet for Q4 Fiscal 2008


Q4 Product Releases Platform (i)

-- ARMY OF TWO(TM) PLAYSTATION(R)3
-- Burnout(TM) Paradise PLAYSTATION 3
-- FIFA Street 3 PLAYSTATION 3
-- NFL Tour PLAYSTATION 3

-- ARMY OF TWO Xbox 360(TM)
-- Burnout Paradise Xbox 360
-- FIFA Street 3 Xbox 360
-- NFL Tour Xbox 360

-- Command & Conquer(TM) 3: Kane's Wrath PC
-- The Sims(TM) 2 FreeTime PC
-- The Sims Carnival(TM) BumperBlast PC
-- The Sims Carnival SnapCity PC
-- The Sims Castaway Stories PC

-- The Sims Castaway Stories Mac(R)

-- Need for Speed(TM) ProStreet PSP(R)

-- FIFA Street 3 Nintendo DS(TM)

-- Command & Conquer 3 Tiberium Wars(TM) Cellular Handsets
-- Merv Griffin's Crosswords(TM) Cellular Handsets
-- MONOPOLY HERE AND NOW Cellular Handsets
-- Tetris(R) Blockout(TM) Cellular Handsets
-- The Sims Castaway Cellular Handsets
-- The Sims Pool Cellular Handsets

-- SCRABBLE(R) iPod(R) nano/iPod(R) classic
-- YAHTZEE iPod nano/iPod classic


Co-publishing, Distribution, and International only (ii)

-- Ninja Reflex(TM) Wii(TM)

-- Ninja Reflex Nintendo DS
-- SimCity(TM) DS 2 (iii) Nintendo DS

-- Asterix: The Official Mobile Game of Cellular Handsets
the Movie (iv)
-- FIFA Manager Cellular Handsets


(i) Mac, Cellular Handsets, iPod nano, and iPod classic releases are
not included in SKU count.
(ii) Not included in SKU count.
(iii) Released in Japan.
(iv) Referred in France as "Asterix at the Olympic Games".


All trademarks are the property of their respective owners.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Results
(in millions, except per share data)


The following tables reconcile the Company's net revenue, gross
profit, operating income (loss), net loss and diluted loss per share
as presented in its Unaudited Condensed Consolidated Statements of
Operations as prepared in accordance with Generally Accepted
Accounting Principles ("GAAP") with its non-GAAP net revenue, non-
GAAP gross profit, non-GAAP operating income (loss), non-GAAP net
income (loss), and non-GAAP diluted earnings (loss) per share. The
Company's non-GAAP net revenue excludes the impact of the change in
deferred net revenue (packaged goods and digital content). The
Company's non-GAAP gross profit excludes the impact of the change in
deferred net revenue (packaged goods and digital content), COGS
amortization of intangibles, and stock-based compensation. The
Company's non-GAAP operating income (loss), non-GAAP net income
(loss), and non-GAAP diluted earnings (loss) per share exclude the
impact of the change in deferred net revenue (packaged goods and
digital content), acquired in-process technology, amortization of
intangibles, restructuring charges, and stock-based compensation. In
addition, the Company's non-GAAP net income (loss) and non-GAAP
diluted earnings (loss) per share exclude losses on strategic
investments and income tax adjustments consisting of the income tax
expense associated with the foregoing excluded items and the impact
of certain one-time income tax adjustments.

Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
--------- --------- -------- -------- --------- ------
QUARTERLY
RECONCILIATION
OF RESULTS
GAAP net
revenue $ 613 $ 395 $ 640 $ 1,503 $ 1,127 84%
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 296 231 (208)
--------- --------- -------- -------- ---------

Non-GAAP net
revenue (a) $ 613 $ 431 $ 936 $ 1,734 $ 919 50%
========= ========= ======== ======== =========


GAAP gross
profit $ 378 $ 229 $ 245 $ 721 $ 665 76%
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a)
36 296 231 (208)
COGS
amortization
of
intangibles 7 7 7 6 6
Stock-based
compensation 1 - 1 1 -
--------- --------- -------- -------- ---------

Non-GAAP gross
profit $ 386 $ 272 $ 549 $ 959 $ 463 20%
========= ========= ======== ======== =========
Non-GAAP gross
margin - % of
non-GAAP net
revenue 63% 63% 59% 55% 50%


GAAP operating
income (loss) $ (71) $ (183) $ (274) $ 7 $ (37) 48%
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 296 231 (208)
Acquired in-
process
technology - - - - 138
Amortization
of
intangibles 7 7 7 7 13
COGS
amortization
of
intangibles 7 7 7 6 6
Restructuring
charges 3 2 5 78 18
Stock-based
compensation 28 28 38 38 45
--------- --------- -------- -------- ---------

Non-GAAP
operating
income (loss) $ (26) $ (103) $ 79 $ 367 $ (25) 4%
========= ========= ======== ======== =========
Non-GAAP
operating
income (loss)
margin - % of
non-GAAP net
revenue (4%) (24%) 8% 21% (3%)


GAAP net loss $ (25) $ (132) $ (195) $ (33) $ (94) (276%)
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 296 231 (208)
Acquired in-
process
technology - - - - 138
Amortization
of
intangibles 7 7 7 7 13
COGS
amortization
of
intangibles 7 7 7 6 6
Losses on
strategic
investments - - - 12 106
Restructuring
charges 3 2 5 78 18
Stock-based
compensation 28 28 38 38 45
Income tax
adjustments (1) (17) (71) (49) 6
--------- --------- -------- -------- ---------

Non-GAAP net
income (loss) $ 19 $ (69) $ 87 $ 290 $ 30 58%
========= ========= ======== ======== =========
Non-GAAP net
income (loss)
margin - % of
non-GAAP net
revenue 3% (16%) 9% 17% 3%

GAAP diluted
loss per
share ($0.08) ($0.42) ($0.62) ($0.10) ($0.30) (275%)
Non-GAAP
diluted
earnings
(loss) per
share $0.06 ($0.22) $0.27 $0.90 $0.09 50%
Shares used
in non-GAAP
diluted
earnings
(loss) per
share
computation
319 311 320 323 323


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Results
(in millions, except per share data)

The following tables reconcile the Company's net revenue, gross
profit, operating income (loss), net income (loss) and diluted
earnings (loss) per share as presented in its Unaudited Condensed
Consolidated Statements of Operations as prepared in accordance with
Generally Accepted Accounting Principles ("GAAP") with its non-GAAP
net revenue, non-GAAP gross profit, non-GAAP operating income, non-
GAAP net income, and non-GAAP diluted earnings per share. The
Company's non-GAAP net revenue excludes the impact of the change in
deferred net revenue (packaged goods and digital content). The
Company's non-GAAP gross profit excludes the impact of the change in
deferred net revenue (packaged goods and digital content), COGS
amortization of intangibles, and stock-based compensation. The
Company's non-GAAP operating income, non-GAAP net income, and non-
GAAP diluted earnings per share exclude the impact of the change in
deferred net revenue (packaged goods and digital content), acquired
in-process technology, amortization of intangibles, restructuring
charges, and stock-based compensation. In addition, the Company's
non-GAAP net income and non-GAAP diluted earnings per share exclude
losses on strategic investments and income tax adjustments consisting
of the income tax expense associated with the foregoing excluded
items and the impact of certain one-time income tax adjustments.


Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
------- ------- -------- -------- -------- -------
TRAILING TWELVE
MONTH
RECONCILIATION OF
RESULTS
GAAP net revenue $3,091 $3,073 $ 2,929 $ 3,151 $ 3,665 19%
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 332 563 355
------- ------- -------- -------- --------

Non-GAAP net
revenue (a) $3,091 $3,109 $ 3,261 $ 3,714 $ 4,020 30%
======= ======= ======== ======== ========


GAAP gross profit $1,879 $1,863 $ 1,663 $ 1,573 $ 1,860 (1%)
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 332 563 355
COGS
amortization of
intangibles 27 28 28 27 26
Stock-based
compensation 2 2 2 3 2
------- ------- -------- -------- --------

Non-GAAP gross
profit $1,908 $1,929 $ 2,025 $ 2,166 $ 2,243 18%
======= ======= ======== ======== ========
Non-GAAP gross
margin
- % of non-GAAP net
revenue 62% 62% 62% 58% 56%


GAAP operating
income (loss) $ 39 $ (25) $ (313) $ (521) $ (487) (1349%)
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 332 563 355
Acquired in-
process
technology 3 3 1 - 138
Amortization of
intangibles 27 28 28 28 34
COGS
amortization of
intangibles 27 28 28 27 26
Restructuring
charges 15 11 12 88 103
Stock-based
compensation 133 124 129 132 150
------- ------- -------- -------- --------

Non-GAAP operating
income $ 244 $ 205 $ 217 $ 317 $ 319 31%
======= ======= ======== ======== ========
Non-GAAP
operating income
margin
- % of non-GAAP net
revenue 8% 7% 7% 9% 8%


GAAP net income
(loss) $ 76 $ 25 $ (192) $ (385) $ (454) (697%)
Change in
deferred net
revenue
(packaged
goods and
digital
content) (a) 36 332 563 355
Acquired in-
process
technology 3 3 1 - 138
Amortization of
intangibles 27 28 28 28 34
COGS
amortization of
intangibles 27 28 28 27 26
Losses on
strategic
investments - - - 12 118
Restructuring
charges 15 11 12 88 103
Stock-based
compensation 133 124 129 132 150
Income tax
adjustments (34) (39) (100) (138) (131)
------- ------- -------- -------- --------

Non-GAAP net
income $ 247 $ 216 $ 238 $ 327 $ 339 37%
======= ======= ======== ======== ========
Non-GAAP net
income margin
- % of non-GAAP net
revenue 8% 7% 7% 9% 8%

GAAP diluted
earnings (loss)
per share $0.24 $0.07 ($0.62) ($1.22) ($1.45) (704%)
Non-GAAP diluted
earnings per
share $0.78 $0.68 $0.74 $1.01 $1.06 36%


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
Business Metrics
(in millions, except per share data)


Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
-------- --------- ------- ------- -------- ------
CONSOLIDATED NON-
GAAP FINANCIAL
DATA (b)
Non-GAAP net
revenue 613 431 936 1,734 919 50%
Non-GAAP net
revenue - TTM 3,091 3,109 3,261 3,714 4,020 30%


Non-GAAP gross
profit 386 272 549 959 463 20%
Non-GAAP gross
margin - % of
non-GAAP net
revenue 63% 63% 59% 55% 50%
Non-GAAP gross
profit - TTM 1,908 1,929 2,025 2,166 2,243 18%
Non-GAAP gross
margin - TTM
% of non-GAAP
net revenue 62% 62% 62% 58% 56%


Non-GAAP operating
income (loss) (26) (103) 79 367 (25) 4%
Non-GAAP
operating
income (loss)
margin - % of
non-GAAP net
revenue (4%) (24%) 8% 21% (3%)
Non-GAAP operating
income - TTM 244 205 217 317 319 31%
Non-GAAP
operating
income margin
- TTM % of
non-GAAP net
revenue 8% 7% 7% 9% 8%


Non-GAAP net
income (loss) 19 (69) 87 290 30 58%
Non-GAAP
diluted
earnings
(loss) per
share $0.06 ($0.22) $0.27 $0.90 $0.09 50%
Non-GAAP net
income - TTM 247 216 238 327 339 37%
Non-GAAP
diluted
earnings per
share - TTM $0.78 $0.68 $0.74 $1.01 $1.06 36%


GEOGRAPHIC NET
REVENUE MIX -
GAAP to Non-GAAP
Reconciliation

GAAP
North America 307 163 362 768 649 111%
International 306 232 278 735 478 56%

Europe 264 204 246 668 421 59%
Asia 42 28 32 67 57 36%
-------- --------- ------- ------- --------
Net Revenue 613 395 640 1,503 1,127 84%

Change In Deferred
Net Revenue
(Packaged Goods
and Digital
Content)
Geographic Mix (a)
North America 8 163 93 (105)
International 28 133 138 (103)

Europe 21 129 124 (103)
Asia 7 4 14 -
--------- ------- ------- --------
Change In
Deferred Net
Revenue
(Packaged
Goods and
Digital
Content) 36 296 231 (208)

Non-GAAP
North America 307 171 525 861 544 77%
International 306 260 411 873 375 23%

Europe 264 225 375 792 318 20%
Asia 42 35 36 81 57 36%
-------- --------- ------- ------- --------
Non-GAAP Net
Revenue 613 431 936 1,734 919 50%
======== ========= ======= ======= ========


NON-GAAP GEOGRAPHIC
NET REVENUE MIX -
as a % of Non-GAAP
Net Revenue
North America 50% 40% 56% 50% 59%
International 50% 60% 44% 50% 41%

Europe 43% 52% 40% 45% 35%
Asia 7% 8% 4% 5% 6%
-------- --------- ------- ------- --------
Non-GAAP Net
Revenue 100% 100% 100% 100% 100%
======== ========= ======= ======= ========


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).
(b) Refer to Unaudited Reconciliation of GAAP to Non-GAAP Results.
ELECTRONIC ARTS INC. AND SUBSIDIARIES
Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
Business Metrics
(in millions)


Q4 Q1 Q2 Q3 Q4 YOY %
FY07 FY08 FY08 FY08 FY08 Change
---- ---- ----- ------ ------ ------

PLATFORM NON-GAAP NET REVENUE MIX
PLAYSTATION 3 52 20 98 196 138 165%
Xbox 360 82 47 218 196 128 56%
Wii 36 29 83 156 61 69%
PlayStation 2 117 69 204 324 52 (56%)
Xbox 7 3 12 3 1 (86%)
Nintendo GameCube 4 1 3 1 - (100%)
---- ---- ----- ------ ------
Total Consoles 298 169 618 876 380 28%

PC 128 96 116 153 92 (28%)

PSP 39 30 43 111 47 21%
Cellular Handsets 36 34 37 38 41 14%
Nintendo DS 27 25 47 122 36 33%
Game Boy Advance 3 2 4 2 - (100%)
---- ---- ----- ------ ------
Total Mobility 105 91 131 273 124 18%

Co-publishing and
Distribution 45 39 32 372 271 502%

Licensing, Advertising &
Other 13 13 16 37 29 123%
Subscription Services 24 23 23 23 23 (4%)
---- ---- ----- ------ ------
Total Internet Services,
Licensing & Other 37 36 39 60 52 41%
---- ---- ----- ------ ------

Non-GAAP Net Revenue 613 431 936 1,734 919 50%

Change in Deferred Net Revenue
(Packaged Goods and Digital Content) (a)
PLAYSTATION 3 (7) (81) (94) 14
Wii - (24) (17) 14
PlayStation 2 (8) (131) (23) 114
PC (7) (37) (5) 22
PSP (9) (22) (37) 22
Cellular Handsets (1) - - -
Co-publishing and
Distribution - 1 (52) 24
Licensing, Advertising &
Other (4) (2) (3) (2)
---- ----- ------ ------
Change in Deferred Net Revenue
(Packaged Goods and Digital
Content) (a) (36) (296) (231) 208
---- ----- ------ ------

GAAP Net Revenue 395 640 1,503 1,127
==== ===== ====== ======

PLATFORM NON-GAAP NET REVENUE MIX
- as a % of Non-GAAP Net Revenue
PLAYSTATION 3 9% 5% 11% 11% 15%
Xbox 360 13% 11% 23% 11% 14%
Wii 6% 7% 9% 9% 7%
PlayStation 2 19% 16% 22% 19% 5%
Xbox 1% 1% 1% - -
Nintendo GameCube 1% - - - -
---- ---- ----- ------ ------
Total Consoles 49% 40% 66% 50% 41%

PC 21% 22% 12% 9% 10%

PSP 6% 7% 5% 7% 5%
Cellular Handsets 6% 8% 4% 2% 4%
Nintendo DS 5% 6% 5% 7% 4%
---- ---- ----- ------ ------
Total Mobility 17% 21% 14% 16% 13%

Co-publishing and
Distribution 7% 9% 4% 22% 30%

Licensing, Advertising &
Other 2% 3% 2% 2% 3%
Subscription Services 4% 5% 2% 1% 3%
---- ---- ----- ------ ------
Total Internet
Services, Licensing &
Other 6% 8% 4% 3% 6%
---- ---- ----- ------ ------

Non-GAAP Net Revenue 100% 100% 100% 100% 100%
==== ==== ===== ====== ======

(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
goods and digital content) did not have a material impact on the
Company's net revenue. Accordingly, the Company has not revised its
fiscal 2007 non-GAAP financial measures to exclude the impact of the
change in deferred net revenue (packaged goods and digital content).