REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of revenue

Product revenue

Product revenue is primarily comprised of the portion of revenue from software products that is recognized when the customer takes control of the product (i.e., upon delivery of the software product).

Service and other revenue

Service and other revenue is primarily comprised of revenue from game related services, virtual currency transactions, and in-game purchases which are recognized over an estimated service period.

Net revenue by product revenue and service and other was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net revenue recognized:
Service and other	$	551,576	$	421,747	$	1,083,626	$	846,132
Product	289,566		436,094		588,826		552,168
Total net revenue	$	841,142	$	857,841	$	1,672,452	$	1,398,300

Full game and other revenue

Full game and other revenue primarily includes the initial sale of full game software products, which may include offline and/or significant game related services.

Recurrent consumer spending revenue

Recurrent consumer spending revenue is generated from ongoing consumer engagement and includes revenue from virtual currency, add-on content, and in-game purchases.

Net revenue by full game and other revenue and recurrent consumer spending was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net revenue recognized:
Recurrent consumer spending	$	495,724	$	318,468	$	975,129	$	633,326
Full game and other	345,418		539,373		697,323		764,974
Total net revenue	$	841,142	$	857,841	$	1,672,452	$	1,398,300

Geography

We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net revenue recognized:
United States	$	503,583	$	494,661	$	974,073	$	825,140
International	337,559		363,180		698,379		573,160
Total net revenue	$	841,142	$	857,841	$	1,672,452	$	1,398,300

Platform

Net revenue by platform was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net revenue recognized:
Console	$	641,269	$	651,818	$	1,252,954	$	1,086,632
PC and other	199,873		206,023		419,498		311,668
Total net revenue	$	841,142	$	857,841	$	1,672,452	$	1,398,300

Distribution channel

Our products are delivered through digital online services (digital download, online platforms, and cloud streaming) and physical retail and other. Net revenue by distribution channel was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Net revenue recognized:
Digital online	$	711,299	$	615,774	$	1,437,525	$	1,043,555
Physical retail and other	129,843		242,067		234,927		354,745
Total net revenue	$	841,142	$	857,841	$	1,672,452	$	1,398,300

Deferred Revenue

We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. Deferred revenue, including current and non-current balances as of September 30, 2020 and March 31, 2020 were $1,095,944 and $806,123, respectively. For the three months ended September 30, 2020, the additions to our deferred revenue balance were due primarily to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were due primarily to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business.

During the three months ended September 30, 2020 and 2019, $241,732 and $234,411, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. During the six months ended September 30, 2020 and 2019, $612,946 and $564,833, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. As of September 30, 2020, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,223,304, which includes our deferred revenue balances and amounts to be invoiced and recognized in future periods. We expect to recognize approximately $1,092,423 of this balance as revenue over the next 12 months, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee.

As of September 30, 2020 and March 31, 2020, our contract asset balances were $98,053 and $81,625, respectively, which are recorded within Prepaid expenses and other in our Condensed Consolidated Balance Sheets.