8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) October 30, 2008

ELECTRONIC ARTS INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

0-17948	94-2838567
(Commission File Number)	(IRS Employer Identification No.)

209 Redwood Shores Parkway, Redwood City, California 94065-1175

(Address of Principal Executive Offices) (Zip Code)

(650) 628-1500

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2008, Electronic Arts Inc. issued a press release announcing its financial results for the fiscal quarter ended September 30, 2008. A copy of the press release is attached hereto as Exhibit 99.1. Neither the information in this Form 8-K nor the information in the press release shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.	Description
99.1	Press release dated October 30, 2008, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ELECTRONIC ARTS INC.
Dated: October 30, 2008	By:	/s/ Eric F. Brown
		Eric F. Brown
		Executive Vice President, Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release dated October 30, 2008, relating to Electronic Arts Inc.’s financial results for the fiscal quarter ended September 30, 2008.

EX-99.1

Exhibit 99.1

EA REPORTS SECOND QUARTER FISCAL YEAR 2009 RESULTS

Quality Scores Rise for EA SPORTS

800 Thousand Registered Users Playing Warhammer Online

Need For Speed, Mirror’s Edge To Join Holiday Portfolio of 20 Titles

REDWOOD CITY, CA – October 30, 2008 – Electronic Arts Inc. (NASDAQ: ERTS) today announced preliminary financial results for its fiscal second quarter ended September 30, 2008.

Fiscal Second Quarter Results (comparisons are to the quarter ended September 30, 2007)

Net revenue for the second quarter was $894 million, up $254 million as compared with $640 million for the prior year. During the quarter, EA had a net deferral of $232 million of net revenue related to certain online enabled packaged goods games and digital content as compared with $296 million in the prior year.

Non-GAAP net revenue was $1.126 billion, up 20 percent as compared with $936 million for the prior year. Sales were driven by the launches of Madden NFL 09, SPORE™, Mercenaries 2: World in Flames™, NCAA® Football 09, Tiger Woods PGA TOUR 09, Warhammer® Online: Age of Reckoning™, as well as the continued strength of Rock Band™.

Net loss for the quarter was $310 million as compared with net loss of $195 million for the prior year. Diluted loss per share was $0.97 as compared with diluted loss per share of $0.62 for the prior year.

Non-GAAP net loss was $20 million as compared with non-GAAP net income of $87 million a year ago. Non-GAAP diluted loss per share was $0.06 as compared with non-GAAP diluted earnings per share of $0.27 for the prior year.

Trailing-twelve-month operating cash flow was $219 million as compared with $145 million a year ago. The Company ended the quarter with cash and short-term investments of $1.825 billion.

“Considering the slow down at retail we’ve seen in October, we are cautious in the short term,” said John Riccitiello, Chief Executive Officer. “Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband internet connections. EA is well positioned to benefit from these technology drivers due to the strength of our creative studios and our broad collection of game properties – from The Sims, to Spore and Madden NFL, to Warhammer Online.”

Highlights

¡ Madden NFL 09 sold 4.5 million copies and was the number one title across all platforms in the quarter based on NPD data.

¡ SPORE is a hit selling nearly 2.0 million copies in just 3 weeks – over 40 million creatures have been uploaded into Sporepedia™. SPORE is the number one title on the PC in North America and number three title in Europe year-to-date.

¡ Warhammer Online: Age of Reckoning, an MMO from EA’s Mythic Entertainment studio, sold 1.2 million copies in the quarter – with over 800 thousand current players.

¡ The EA SPORTS core portfolio of annual simulation games takes a step up in quality – up 4 points year-over-year according to Metacritic’s aggregated review score system on the Xbox 360® and PLAYSTATION®3 entertainment systems.

¡ EA was awarded 5 of the 9 honors at the Leipzig Games Convention in Germany – Spore as best PC game; Mirror’s Edge™ as best Xbox 360 game; Skate It as best Wii™ game; Warhammer Online: Age of Reckoning as best online game; and Sonic Chronicles, a game developed by EA BioWare, won best Nintendo DS™ game.

¡ EA Mobile is the world’s leading publisher of games for phones – with revenue of $47 million – up 24 percent year-over-year.

¡ EA BioWare and LucasArts announced the development of Star Wars®: The Old Republic™, a story-driven massively multiplayer online PC game.

¡ EA signs publishing agreements with Grasshopper Manufacture and Epic Games.

EA Announces Cost Reduction Plan

EA announced today a cost reduction plan, which will include the elimination of approximately 6% of the Company’s workforce. The Company estimates its cost reduction plan will result in annual pre-tax cost savings of approximately $50 million.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of October 30, 2008. Results may be materially different and are affected by many factors, including: development delays on EA’s products; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; expected savings and impact on EA’s operations of the Company’s cost reduction plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; changes in foreign exchange rates; consumer demand for games for the PlayStation®2; the financial impact of potential future acquisitions by EA; the popular appeal of EA’s products; 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 as compared with $3.665 billion in the prior year – up 33 to 41 percent.

¡ Non-GAAP net revenue is expected to be between $5.0 and $5.3 billion as compared with $4.020 billion in the prior year – up 24 to 32 percent.

¡ GAAP diluted earnings per share are expected to be a diluted loss per share of $0.21 to diluted earnings per share of $0.07 as compared with a diluted loss per share of $1.45 in the prior year.

¡ Non-GAAP diluted earnings per share are expected to be between $1.00 and $1.40 as compared with $1.06 in the prior year.

¡ Expected non-GAAP net income 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),

— $211 million of estimated stock-based compensation,

— $75 million of amortization of intangible assets,

— $37 million of restructuring charges,

— $40 million of losses on strategic investments,

— $3 million in acquired-in process technology, and

— $21 million of certain abandoned acquisition-related costs

In fiscal 2009, the Company began using a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its fiscal 2009 non-GAAP financial results. The Company expects its GAAP tax expense to be approximately $35 to $70 million for fiscal 2009.

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 fiscal second quarter ended September 30, 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) 857-6177, access code 220497, or via webcast: http://investor.ea.com.

A dial-in replay of the conference call will be provided until November 6, 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.

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, as applicable in a given reporting period, from the Company’s unaudited condensed consolidated statements of operations:

¡ Amortization of intangibles

¡ Stock-based compensation

¡ Acquired in-process technology

¡ Restructuring charges

¡ Losses on strategic investments

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

¡ Certain abandoned acquisition-related costs

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.

In fiscal 2009, the Company began using a fixed, long-term projected tax rate of 28 percent internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company has applied the same 28 percent tax rate to its fiscal 2009 non-GAAP financial results.

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.

Certain Abandoned Acquisition-Related Costs. Electronic Arts incurred significant legal, banking and other consulting fees related to the Company’s proposed acquisition and related cash tender offer for all of the outstanding shares of Take-Two Interactive Software, Inc. On August 18, 2008, the Company allowed the tender offer to expire without purchasing any shares of Take-Two and, on September 14, 2008, the Company announced that it had terminated discussions with, and would not be making a proposal to acquire, Take-Two. The costs incurred in connection with the abandoned proposal and tender offer were outside the ordinary course of business and will be excluded by the Company when assessing the performance of its management team. As such, the Company believes it is appropriate to exclude such expenses from its non-GAAP financial measures.

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 cost reduction plans; the general health of the U.S. and global economy and the related impact on discretionary consumer spending; the consumer demand for, and the availability of an adequate supply of console hardware units (including the Xbox 360® video game and entertainment system, the PLAYSTATION®3 computer entertainment system and the Wii™); consumer demand for software for the PlayStation 2; the Company’s ability to predict consumer preferences among competing hardware platforms; the financial impact of potential future acquisitions by EA; the Company’s ability to realize the anticipated benefits of acquisitions; 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2008. These forward-looking statements speak only as of October 30, 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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2008. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 30, 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, wireless devices 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.

For additional information, please contact:

Tricia Gugler	Jeff Brown
Senior Director, Investor Relations	Vice President, Corporate Communications
650-628-7327	650-628-7922

EA, EA SPORTS, EA SPORTS Freestyle, EA Mobile, POGO, SPORE, Sporepedia, Need for Speed, MySims, Dead Space, Mercenaries and Mercenaries 2: World in Flames are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. Mirror’s Edge and the DICE logo are trademarks or registered trademarks of EA Digital Illusions CE AB. John Madden, NFL, FIFA, Tiger Woods, PGA TOUR and NCAA are trademarks or registered trademarks of their respective owners and used with permission. Rock Band is a trademark of Harmonix Music Systems, Inc., a division of MTV Networks. Warhammer, Warhammer Online, Age of Reckoning, and all associated marks, names, races, race insignia, characters, vehicles, locations, units, illustrations and images from the Warhammer world are either ®, ™ and/or © Games Workshop Ltd 2000-2008. LucasArts, STAR WARS and related properties are trademarks in the United States and/or in other countries of Lucasfilm Ltd. and/or its affiliates. Xbox 360 is a trademark of the Microsoft group of companies and are used under license from Microsoft. “PlayStation” and “PLAYSTATION” are registered trademarks of Sony Computer Entertainment Inc. Wii and Nintendo DS are trademarks 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 September 30,						Six Months Ended September 30,
	2008			2007			2008			2007
Net revenue	$	894		$	640		$	1,698		$	1,035
Cost of goods sold		557			395			853			561
Gross profit		337			245			845			474
Operating expenses:
Marketing and sales		197			164			325			246
General and administrative		92			84			176			155
Research and development		372			259			729			508
Amortization of intangibles		16			7			30			14
Acquired in-process technology		-			-			2			-
Certain abandoned acquisition-related costs		21			-			21			-
Restructuring charges		3			5			23			7
Total operating expenses		701			519			1,306			930
Operating loss		(364	)		(274	)		(461	)		(456	)
Losses on strategic investments		(34	)		-			(40	)		-
Interest and other income, net		7			32			23			58
Loss before benefit from income taxes		(391	)		(242	)		(478	)		(398	)
Benefit from income taxes		(81	)		(47	)		(73	)		(70	)
Net loss	$	(310	)	$	(195	)	$	(405	)	$	(328	)
Loss per share:
Basic and diluted	$	(0.97	)	$	(0.62	)	$	(1.27	)	$	(1.05	)
Number of shares used in computation:
Basic and diluted		319			313			319			312

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

The following tables reconcile the Company’s net loss and 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 (loss) and non-GAAP diluted earnings (loss) 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 amortization of intangibles, acquired in-process technology, and certain abandoned acquisition-related costs), stock-based compensation, restructuring charges, and losses on strategic investments. In addition, prior to fiscal 2009, the Company’s non-GAAP financial results excluded income tax adjustments consisting of the income tax expense or benefit associated with the foregoing excluded items and the impact of certain one-time income tax adjustments. On April 1, 2008, the Company began using a fixed, long-term projected tax rate of 28% internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company began applying the same 28% tax rate to its fiscal 2009 non-GAAP financial results. Had the three and six months ended September 30, 2007, been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted income tax adjustments would have been ($78) and ($81) as compared to ($71) and ($88), adjusted non-GAAP net income would have been $80 and $25 as compared to $87 and $18, and adjusted non-GAAP diluted earnings per share would have been $0.25 and $0.08 as compared to $0.27 and $0.06, respectively.

	Three Months Ended September 30,						Six Months Ended September 30,
	2008			2007			2008			2007
Net loss	$	(310	)	$	(195	)	$	(405	)	$	(328	)
Change in deferred net revenue (packaged goods and digital content)		232			296			37			332
COGS amortization of intangibles		4			7			7			14
Amortization of intangibles		16			7			30			14
Stock-based compensation		53			38			103			67
Acquired in-process technology		-			-			2			-
Restructuring charges		3			5			23			7
Losses on strategic investments		34			-			40			-
Certain abandoned acquisition-related costs		21			-			21			-
Income tax adjustments		(73	)		(71	)		(13	)		(88	)
Non-GAAP net income (loss)	$	(20	)	$	87		$	(155	)	$	18
Non-GAAP diluted earnings (loss) per share	$	(0.06	)	$	0.27		$	(0.49	)	$	0.06
Number of shares used in non-GAAP diluted earnings (loss) per share computation		319			320			319			319

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In millions)

	September 30,   2008		March 31,   2008 (a)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	1,825	$	2,287
Marketable equity securities		640		729
Receivables, net of allowances of $168 and $238, respectively		547		306
Inventories		328		168
Deferred income taxes, net		246		145
Other current assets		249		290
Total current assets		3,835		3,925
Property and equipment, net		417		396
Goodwill		1,182		1,152
Other intangibles, net		240		265
Deferred income taxes, net		179		164
Other assets		109		157
TOTAL ASSETS	$	5,962	$	6,059
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	309	$	229
Accrued and other current liabilities		801		683
Deferred net revenue (packaged goods and digital content)		424		387
Total current liabilities		1,534		1,299
Income tax obligations		289		319
Other liabilities		111		102
Total liabilities		1,934		1,720
Common stock		3		3
Paid-in capital		2,034		1,864
Retained earnings		1,483		1,888
Accumulated other comprehensive income		508		584
Total stockholders’ equity		4,028		4,339
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,962	$	6,059

^(a) Derived from audited consolidated financial statements.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(In millions)

	Three Months Ended September 30,						Six Months Ended September 30,
	2008			2007			2008			2007
OPERATING ACTIVITIES
Net loss	$	(310	)	$	(195	)	$	(405	)	$	(328	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion, net		54			37			104			73
Stock-based compensation		53			38			103			67
Net losses (gains) on investments and sale of property and equipment		34			(1	)		40			(1	)
Non-cash restructuring charges		-			-			16			-
Acquired in-process technology		-			-			2			-
Change in assets and liabilities:
Receivables, net		(291	)		(294	)		(253	)		(156	)
Inventories		(107	)		(29	)		(163	)		(39	)
Other assets		25			(33	)		18			(78	)
Accounts payable		145			103			89			29
Accrued and other liabilities		137			49			119			(84	)
Deferred income taxes, net		(96	)		(75	)		(122	)		(111	)
Deferred net revenue (packaged goods and digital content)		232			296			37			332
Net cash used in operating activities		(124	)		(104	)		(415	)		(296	)
INVESTING ACTIVITIES
Capital expenditures		(32	)		(23	)		(63	)		(37	)
Purchase of marketable equity securities and other investments		-			-			-			(277	)
Proceeds from maturities and sales of short-term investments		375			750			510			1,391
Purchase of short-term investments		(155	)		(312	)		(313	)		(1,209	)
Acquisition of subsidiaries, net of cash acquired		-			-			(42	)		-
Net cash provided by (used in) investing activities		188			415			92			(132	)
FINANCING ACTIVITIES
Proceeds from issuance of common stock		44			68			69			86
Excess tax benefit from stock-based compensation		7			23			16			31
Net cash provided by financing activities		51			91			85			117
Effect of foreign exchange on cash and cash equivalents		(17	)		9			(18	)		14
Increase (decrease) in cash and cash equivalents		98			411			(256	)		(297	)
Beginning cash and cash equivalents		1,199			663			1,553			1,371
Ending cash and cash equivalents		1,297			1,074			1,297			1,074
Short-term investments		528			1,102			528			1,102
Ending cash, cash equivalents and short-term investments	$	1,825		$	2,176		$	1,825		$	2,176

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(In millions, except per share data, SKU count and Headcount)

	Q2     FY08			Q3     FY08			Q4     FY08			Q1     FY09			Q2     FY09			YOY %     Change
CONSOLIDATED FINANCIAL DATA
Net revenue		640			1,503			1,127			804			894		40%
Net revenue - trailing twelve months (“TTM”)		2,929			3,151			3,665			4,074			4,328		48%
Gross profit		245			721			665			508			337		38%
Gross profit % (as a % of net revenue)		38%			48%			59%			63%			38%
Gross profit - TTM		1,663			1,573			1,860			2,139			2,231		34%
Gross profit % (as a % of TTM net revenue)		57%			50%			51%			53%			52%
Operating income (loss)		(274	)		7			(37	)		(97	)		(364	)	(33%	)
Operating income (loss) % (as a % of net revenue)		(43%	)		-			(3%	)		(12%	)		(41%	)
Operating loss - TTM		(313	)		(521	)		(487	)		(401	)		(491	)	(57%	)
Operating loss % (as a % of TTM net revenue)		(11%	)		(17%	)		(13%	)		(10%	)		(11%	)
Net loss		(195	)		(33	)		(94	)		(95	)		(310	)	(59%	)
Loss per share	$	(0.62	)	$	(0.10	)	$	(0.30	)	$	(0.30	)	$	(0.97	)	(56%	)
Net loss - TTM		(192	)		(385	)		(454	)		(417	)		(532	)	(177%	)
Loss per share - TTM	$	(0.62	)	$	(1.22	)	$	(1.45	)	$	(1.32	)	$	(1.67	)	(169%	)
CASH FLOW DATA
Operating cash flow		(104	)		349			285			(291	)		(124	)	(19%	)
Operating cash flow - TTM		145			267			338			239			219		51%
Capital expenditures		23			25			22			31			32		39%
Capital expenditures - TTM		129			122			84			101			110		(15%	)
BALANCE SHEET DATA
Cash, cash equivalents and short-term investments		2,176			2,583			2,287			1,947			1,825		(16%	)
Marketable equity securities		716			837			729			732			640		(11%	)
Receivables, net		424			830			306			269			547		29%
Inventories		103			178			168			223			328		218%
Deferred net revenue (packaged goods and digital content)
End of the quarter		364			595			387			192			424
Less: Beginning of the quarter		68			364			595			387			192
Change in deferred net revenue (packaged goods and digital content)		296			231			(208	)		(195	)		232
STOCK-BASED COMPENSATION
Cost of goods sold		1			1			-			1			-
Marketing and sales		5			5			5			5			5
General and administrative		10			11			9			10			13
Research and development		22			21			31			34			35
Total Stock-Based Compensation		38			38			45			50			53
Marketing and sales		1%			1%			-			1%			1%
General and administrative		2%			1%			1%			1%			1%
Research and development		3%			1%			3%			4%			4%
Total Stock-Based Compensation (as a % of Net Revenue)		6%			3%			4%			6%			6%
OTHER
Employees		8,239			8,165			9,037			9,391			9,671		17%
Diluted weighted-average shares		313			315			317			318			319
GEOGRAPHIC NET REVENUE MIX
North America		362			768			649			429			555		53%
Europe		246			668			421			329			301		22%
Asia		32			67			57			46			38		19%
Net Revenue		640			1,503			1,127			804			894		40%
Geographic Net Revenue Mix (as a % of Net Revenue)
North America		57%			51%			58%			53%			62%
Europe		38%			44%			37%			41%			34%
Asia		5%			5%			5%			6%			4%
Net Revenue		100%			100%			100%			100%			100%

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

(in millions, except per share data, SKU count and Headcount)

	Q2     FY08	Q3     FY08	Q4     FY08	Q1     FY09	Q2     FY09	YOY %     Change
PLATFORM NET REVENUE MIX
Xbox 360	218	196	128	81	224	3%
PLAYSTATION 3	17	102	152	139	98	476%
PlayStation 2	73	301	166	79	54	(26%)
Wii	59	139	75	57	33	(44%)
Xbox	12	3	1	-	1	(92%)
Nintendo GameCube	3	1	-	-	-	(100%)
Total Consoles	382	742	522	356	410	7%
PC	79	148	114	86	88	11%
Wireless	38	39	42	44	47	24%
Nintendo DS	47	122	36	21	43	(9%)
PSP	21	74	69	57	36	71%
Game Boy Advance	4	2	-	-	-	(100%)
Total Mobility	110	237	147	122	126	15%
Co-publishing and Distribution	33	320	295	191	214	548%
Subscription Services	23	25	25	28	29	26%
Licensing, Advertising & Other	13	31	24	21	27	108%
Total Internet Services, Licensing & Other	36	56	49	49	56	56%
Total Net Revenue	640	1,503	1,127	804	894	40%
Platform Net Revenue Mix (as a % of Net Revenue)
Xbox 360	34%	13%	11%	10%	25%
PLAYSTATION 3	3%	7%	14%	17%	11%
PlayStation 2	11%	20%	15%	10%	6%
Wii	9%	9%	7%	7%	4%
Xbox	2%	-	-	-	-
Nintendo GameCube	1%	-	-	-	-
Total Consoles	60%	49%	47%	44%	46%
PC	12%	10%	10%	11%	10%
Wireless	6%	3%	4%	5%	5%
Nintendo DS	7%	8%	3%	3%	5%
PSP	3%	5%	6%	7%	4%
Game Boy Advance	1%	-	-	-	-
Total Mobility	17%	16%	13%	15%	14%
Co-publishing and Distribution	5%	21%	26%	24%	24%
Subscription Services	4%	2%	2%	3%	3%
Licensing, Advertising & Other	2%	2%	2%	3%	3%
Total Internet Services, Licensing & Other	6%	4%	4%	6%	6%
Total Net Revenue	100%	100%	100%	100%	100%
PLATFORM SKU RELEASE MIX (a)
Xbox 360	8	5	4	4	8	-
PLAYSTATION 3	7	5	4	3	8	14%
PlayStation 2	7	7	-	2	4	(43%)
Wii	5	7	-	1	4	(20%)
Xbox	2	-	-	-	1	(50%)
Nintendo GameCube	1	-	-	-	-	(100%)
Total Consoles	30	24	8	10	25	(17%)
PC	7	4	5	8	5	(29%)
Nintendo DS	4	5	1	-	6	50%
PSP	3	4	1	1	3	-
Game Boy Advance	1	-	-	-	-	(100%)
Total Mobility	8	9	2	1	9	13%
Total SKUs	45	37	15	19	39	(13%)

^(a) Mac^®, Wireless, iPod^®, and iPhone^™ releases are not included in SKU count.

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 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), amortization of intangibles, stock-based compensation, acquired in-process technology, certain abandoned acquisition-related costs, and restructuring charges. In addition, the Company’s non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share exclude losses on strategic investments and, prior to fiscal 2009, income tax adjustments consisting of the income tax expense or benefit associated with the foregoing excluded items and the impact of certain one-time income tax adjustments. On April 1, 2008, the Company began using a fixed, long-term projected tax rate of 28% internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company began applying the same 28% tax rate to its fiscal 2009 non-GAAP financial results. Had Q2, Q3, and Q4 in FY08 been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted income tax adjustments would have been ($78), ($52), and ($37) as compared to ($71), ($49), and $6, adjusted non-GAAP net income (loss) would have been $80, $287, and ($13) as compared to $87, $290, and $30, and adjusted non-GAAP diluted earnings (loss) per share would have been $0.25, $0.89, and ($0.04) as compared to $0.27, $0.90, and $0.09, respectively.

	Q2     FY08			Q3     FY08			Q4     FY08			Q1     FY09			Q2     FY09			YOY % Change
QUARTERLY RECONCILIATION OF RESULTS
GAAP net revenue	$	640		$	1,503		$	1,127		$	804		$	894		40%
Change in deferred net revenue (packaged goods and digital content)		296			231			(208	)		(195	)		232
Non-GAAP net revenue	$	936		$	1,734		$	919		$	609		$	1,126		20%
GAAP gross profit	$	245		$	721		$	665		$	508		$	337		38%
Change in deferred net revenue (packaged goods and digital content)		296			231			(208	)		(195	)		232
COGS amortization of intangibles		7			6			6			3			4
Stock-based compensation		1			1			-			1			-
Non-GAAP gross profit	$	549		$	959		$	463		$	317		$	573		4%
Non-GAAP gross profit % (as a % of non-GAAP net revenue)		59%			55%			50%			52%			51%
GAAP operating income (loss)	$	(274	)	$	7		$	(37	)	$	(97	)	$	(364	)	(33%)
Change in deferred net revenue (packaged goods and digital content)		296			231			(208	)		(195	)		232
COGS amortization of intangibles		7			6			6			3			4
Amortization of intangibles		7			7			13			15			16
Stock-based compensation		38			38			45			50			53
Acquired in-process technology		-			-			138			2			-
Certain abandoned acquisition-related costs		-			-			-			-			21
Restructuring charges		5			78			18			20			3
Non-GAAP operating income (loss)	$	79		$	367		$	(25	)	$	(202	)	$	(35	)	(144%)
Non-GAAP operating income (loss) profit % (as a % of non-GAAP net revenue)		8%			21%			(3%	)		(33%	)		(3%	)
GAAP net loss	$	(195	)	$	(33	)	$	(94	)	$	(95	)	$	(310	)	(59%)
Change in deferred net revenue (packaged goods and digital content)		296			231			(208	)		(195	)		232
COGS amortization of intangibles		7			6			6			3			4
Amortization of intangibles		7			7			13			15			16
Stock-based compensation		38			38			45			50			53
Acquired in-process technology		-			-			138			2			-
Certain abandoned acquisition-related costs		-			-			-			-			21
Restructuring charges		5			78			18			20			3
Losses on strategic investments		-			12			106			6			34
Income tax adjustments		(71	)		(49	)		6			59			(73	)
Non-GAAP net income (loss)	$	87		$	290		$	30		$	(135	)	$	(20	)	(123%)
Non-GAAP net income (loss) % (as a % of non-GAAP net revenue)		9%			17%			3%			(22%	)		(2%	)
GAAP loss per share	$	(0.62	)	$	(0.10	)	$	(0.30	)	$	(0.30	)	$	(0.97	)	(56%)
Non-GAAP diluted earnings (loss) per share	$	0.27		$	0.90		$	0.09		$	(0.42	)	$	(0.06	)	(122%)
Number of shares used in non-GAAP diluted earnings (loss) per share computation		320			323			323			318			319

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 loss, net loss and 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), amortization of intangibles, stock-based compensation, acquired in-process technology, certain abandoned acquisition-related costs, and restructuring charges. In addition, the Company’s non-GAAP net income and non-GAAP diluted earnings per share exclude losses on strategic investments and, prior to fiscal 2009, income tax adjustments consisting of the income tax expense or benefit associated with the foregoing excluded items and the impact of certain one-time income tax adjustments. On April 1, 2008, the Company began using a fixed, long-term projected tax rate of 28% internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company began applying the same 28% tax rate to its fiscal 2009 non-GAAP financial results. Had Q2, Q3, and Q4 in FY08 and Q1 and Q2 in FY09 been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted TTM income tax adjustments would have been ($96), ($150), ($170), ($108), and ($103) as compared to ($100), ($138), ($131), ($55), and ($57), adjusted TTM non-GAAP net income would have been $242, $315, $300, $219, $119 as compared to $238, $327, $339, $272, and $165, and adjusted TTM non-GAAP diluted earnings per share would have been $0.75, $0.97, $0.94, $0.68, and $0.37 as compared to $0.74, $1.01, $1.06, $0.84, $0.51, respectively.

	Q2     FY08		Q3     FY08		Q4     FY08		Q1     FY09		Q2     FY09		YOY %     Change
TRAILING TWELVE MONTH RECONCILIATION OF RESULTS
GAAP net revenue	$	2,929	$	3,151	$	3,665	$	4,074	$	4,328	48%
Change in deferred net revenue (packaged goods and digital content) (a)		332		563		355		124		60
Non-GAAP net revenue (a)	$	3,261	$	3,714	$	4,020	$	4,198	$	4,388	35%
GAAP gross profit	$	1,663	$	1,573	$	1,860	$	2,139	$	2,231	34%
Change in deferred net revenue (packaged goods and digital content) (a)		332		563		355		124		60
COGS amortization of intangibles		28		27		26		22		19
Stock-based compensation		2		3		2		3		2
Non-GAAP gross profit	$	2,025	$	2,166	$	2,243	$	2,288	$	2,312	14%
Non-GAAP gross profit % (as a % of non-GAAP net revenue)		62%		58%		56%		55%		53%
GAAP operating loss	$	(313)	$	(521)	$	(487)	$	(401)	$	(491)	(57%)
Change in deferred net revenue (packaged goods and digital content) (a)		332		563		355		124		60
COGS amortization of intangibles		28		27		26		22		19
Amortization of intangibles		28		28		34		42		51
Stock-based compensation		129		132		150		171		186
Acquired in-process technology		1		-		138		140		140
Certain abandoned acquisition-related costs		-		-		-		-		21
Restructuring charges		12		88		103		121		119
Non-GAAP operating income	$	217	$	317	$	319	$	219	$	105	(52%)
Non-GAAP operating income % (as a % of non-GAAP net revenue)		7%		9%		8%		5%		2%
GAAP net loss	$	(192)	$	(385)	$	(454)	$	(417)	$	(532)	(177%)
Change in deferred net revenue (packaged goods and digital content) (a)		332		563		355		124		60
COGS amortization of intangibles		28		27		26		22		19
Amortization of intangibles		28		28		34		42		51
Stock-based compensation		129		132		150		171		186
Acquired in-process technology		1		-		138		140		140
Certain abandoned acquisition-related costs		-		-		-		-		21
Restructuring charges		12		88		103		121		119
Losses on strategic investments		-		12		118		124		158
Income tax adjustments		(100)		(138)		(131)		(55)		(57)
Non-GAAP net income	$	238	$	327	$	339	$	272	$	165	(31%)
Non-GAAP net income % (as a % of non-GAAP net revenue)		7%		9%		8%		6%		4%
GAAP loss per share	$	(0.62)	$	(1.22)	$	(1.45)	$	(1.32)	$	(1.67)	(169%)
Non-GAAP diluted earnings per share	$	0.74	$	1.01	$	1.06	$	0.84	$	0.51	(31%)

^(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 Business Metrics

(in millions, except per share data)

	Q2     FY08		Q3     FY08		Q4     FY08			Q1     FY09			Q2     FY09		YOY %     Change
CONSOLIDATED NON-GAAP FINANCIAL DATA (a)
Non-GAAP net revenue		936		1,734		919			609			1,126	20%
Non-GAAP net revenue - TTM		3,261		3,714		4,020			4,198			4,388	35%
Non-GAAP gross profit		549		959		463			317			573	4%
Non-GAAP gross profit % (as a % of non-GAAP net revenue)		59%		55%		50%			52%			51%
Non-GAAP gross profit - TTM		2,025		2,166		2,243			2,288			2,312	14%
Non-GAAP gross profit % (as a % of TTM non-GAAP net revenue)		62%		58%		56%			55%			53%
Non-GAAP operating income (loss)		79		367		(25)			(202)			(35)	(144%)
Non-GAAP operating income (loss) % (as a % of non-GAAP net revenue)		8%		21%		(3%)			(33%)			(3%)
Non-GAAP operating income - TTM		217		317		319			219			105	(52%)
Non-GAAP operating income % (as a % of TTM non-GAAP net revenue)		7%		9%		8%			5%			2%
Non-GAAP net income (loss) (b)		87		290		30			(135)			(20)	(123%)
Non-GAAP diluted earnings (loss) per share (b)	$	0.27	$	0.90	$	0.09		$	(0.42)		$	(0.06)	(122%)
Non-GAAP net income - TTM (b)		238		327		339			272			165	(31%)
Non-GAAP diluted earnings per share - TTM (b)	$	0.74	$	1.01	$	1.06		$	0.84		$	0.51	(31%)
GEOGRAPHIC NET REVENUE MIX (GAAP TO NON-GAAP RECONCILIATION)
North America		362		768		649			429			555	53%
Europe		246		668		421			329			301	22%
Asia		32		67		57			46			38	19%
GAAP Net Revenue		640		1,503		1,127			804			894	40%
North America		163		93		(105)			(89)			191
Europe		129		124		(103)			(95)			37
Asia		4		14		-			(11)			4
Change In Deferred Net Revenue (Packaged Goods and Digital Content)		296		231		(208	)		(195	)		232
North America		525		861		544			340			746	42%
Europe		375		792		318			234			338	(10%)
Asia		36		81		57			35			42	17%
Non-GAAP Net Revenue		936		1,734		919			609			1,126	20%
Non-GAAP Geographic Net Revenue Mix (as a % of Non-GAAP Net Revenue)
North America		56%		50%		59%			56%			66%
Europe		40%		45%		35%			38%			30%
Asia		4%		5%		6%			6%			4%
Non-GAAP Net Revenue		100%		100%		100%			100%			100%

^(a) Refer to Unaudited Reconciliation of GAAP to Non-GAAP Results.

^(b) On April 1, 2008, the Company began using a fixed, long-term projected tax rate of 28% internally to evaluate its operating performance, to forecast, plan and analyze future periods, and to assess the performance of its management team. Accordingly, the Company began applying the same 28% tax rate to its fiscal 2009 non-GAAP financial results. Had Q2, Q3, and Q4 in FY08 been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted non-GAAP net income (loss) would have been $80, $287, and ($13) as compared to $87, $290, and $30, and adjusted non-GAAP diluted earnings (loss) per share would have been $0.25, $0.89, and ($0.04) as compared to $0.27, $0.90, and $0.09. Had Q2, Q3, and Q4 in FY08 and Q1 and Q2 in FY09 been adjusted to reflect a comparable 28% non-GAAP tax rate, adjusted TTM non-GAAP net income would have been $242, $315, $300, $219, and $119 as compared to $238, $327, $339, $272, and $165, and adjusted TTM non-GAAP diluted earnings per share would have been $0.75, $0.97, $0.94, $0.68, and $0.37 as compared to $0.74, $1.01, $1.06, $0.84, and $0.51, respectively.

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP Business Metrics

(in millions)

	Q2 FY08		Q3 FY08		Q4 FY08		Q1 FY09		Q2 FY09		YOY % Change
PLATFORM NON-GAAP NET REVENUE MIX
Non-GAAP Net Revenue
Xbox 360	218		196		128		81		224		3%
PLAYSTATION 3	98		196		138		68		166		69%
PlayStation 2	204		324		52		40		77		(62%)
Wii	83		156		61		39		60		(28%)
Xbox	12		3		1		-		1		(92%)
Nintendo GameCube	3		1		-		-		-		(100%)
Total Consoles	618		876		380		228		528		(15%)
PC	116		153		92		70		190		64%
Wireless	38		39		42		43		47		24%
Nintendo DS	47		122		36		21		43		(9%)
PSP	43		111		47		26		33		(23%)
Game Boy Advance	4		2		-		-		-		(100%)
Total Mobility	132		274		125		90		123		(7%)
Co-publishing and Distribution	32		372		271		171		221		591%
Licensing, Advertising & Other	15		36		28		23		36		140%
Subscription Services	23		23		23		27		28		22%
Total Internet Services, Licensing & Other	38		59		51		50		64		68%
Non-GAAP Net Revenue	936		1,734		919		609		1,126		20%
Change in Deferred Net Revenue (Packaged Goods and Digital Content)
PLAYSTATION 3	(81	)	(94	)	14		71		(68	)
PlayStation 2	(131	)	(23	)	114		39		(23	)
Wii	(24	)	(17	)	14		18		(27	)
PC	(37	)	(5	)	22		16		(102	)
Wireless	-		-		-		1		-
PSP	(22	)	(37	)	22		31		3
Co-publishing and Distribution	1		(52	)	24		20		(7	)
Licensing, Advertising & Other	(2	)	(5	)	(4	)	(2	)	(9	)
Subscription Services	-		2		2		1		1
Change in Deferred Net Revenue (Packaged Goods and Digital Content)	(296	)	(231	)	208		195		(232	)
GAAP Net Revenue	640		1,503		1,127		804		894
PLATFORM NON-GAAP NET REVENUE MIX (as a % of Non-GAAP Net Revenue)
Non-GAAP Net Revenue
Xbox 360	23%		11%		14%		13%		20%
PLAYSTATION 3	11%		11%		15%		11%		15%
PlayStation 2	22%		19%		5%		7%		7%
Wii	9%		9%		7%		6%		5%
Xbox	1%		-		-		-		-
Total Consoles	66%		50%		41%		37%		47%
PC	12%		9%		10%		12%		17%
Wireless	4%		2%		4%		7%		4%
Nintendo DS	5%		7%		4%		4%		4%
PSP	5%		7%		5%		4%		3%
Total Mobility	14%		16%		13%		15%		11%
Co-publishing and Distribution	4%		22%		30%		28%		20%
Licensing, Advertising & Other	2%		2%		3%		4%		3%
Subscription Services	2%		1%		3%		4%		2%
Total Internet Services, Licensing & Other	4%		3%		6%		8%		5%
Non-GAAP Net Revenue	100%		100%		100%		100%		100%

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Fact Sheet

Quarterly Product Releases

Platform (i)

Console

PC

Mobility

Xbox 360®

PLAYSTATION®3

Wii™

PlayStation®2

Xbox™

PC

Wireless

iPod®

iPhone™

PSP®

Nintendo DS™

Q2 Fiscal 2009

•

Brain Quest®

•

•

FaceBreaker™

•

•

•

FIFA STREET 3 (iii)

•

•

Gum-Un-Bang (iv)

•

•

Heroes Lore™ 3 (iv)

•

•

Madden NFL 09

•

•

•

•

•

•

•

•

•

Madden NFL 09 en Español

•

•

•

Mercenaries 2: World in Flames™

•

•

•

•

•

MONOPOLY Worldwide Edition

•

•

NASCAR® 09

•

•

NCAA® Football 09

•

•

•

•

•

•

•

NFL Head Coach 09

•

•

•

NHL® 09

•

•

•

Operation™ Mania

•

•

SCRABBLE™

•

•

SimCity™ Creator

•

•

•

SONIC CHRONICLES: THE DARK BROTHERHOOD

•

•

Spore™

•

•

•

•

•

•

Sudoku

•

•

Tetris®

•

•

Tetris® POP

•

•

The Game of LIFE

•

•

The Sims™ 2 Apartment Life

•

•

The Sims™ 2 Apartment Pets

•

•

Tiger Woods PGA TOUR® 09

•

•

•

•

•

•

•

Warhammer® Online: Age of Reckoning™

•

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

•

Crash Car Mania

•

•

Crysis Warhead®

•

•

Rally Stars

•

•

Rock Band™ (iii)

•

•

•

•

Rock Band™ 2

•

•

Rock Band™ EP

•

•

•

Warhammer® Online: Age of Reckoning™

•

^{(i )} Mac, Wireless, iPod, and iPhone releases are not included in SKU count.

⁽ⁱⁱ⁾ Co-publishing, distribution, and international only releases are not included in SKU count.

⁽ⁱⁱⁱ⁾ Released in Europe.

^(iv) Released in Korea.

All trademarks are the property of their respective owners.