8-KRegulation FD

ELECTRONIC ARTS INC. 8-K Report, Regulation FD Disclosure (Sep 8, 2008)

Filed September 8, 2008For Securities:EA

Summary

Electronic Arts Inc. (EA) filed a Form 8-K on September 8, 2008, to disclose a significant change in its product release schedule and anticipated financial impact. The company announced the delay of its upcoming game, 'Harry Potter and the Half-Blood Prince,' from its initially planned November 2008 release to the summer of 2009. This delay is tied to the release of the Warner Bros. film adaptation of the same title. The postponement will have a material impact on EA's financial performance for the fiscal year ending March 31, 2009. The company had previously expected this title to contribute approximately $120 million in net revenue and $0.13 in earnings per share (both GAAP and non-GAAP). Investors should note that this shift will reduce the expected revenue and EPS for the current fiscal year, with the financial contribution now deferred to the subsequent fiscal year.

Key Highlights

  • 1Delayed release of 'Harry Potter and the Half-Blood Prince' game from November 2008 to Summer 2009.
  • 2New release schedule is aligned with the Warner Bros. film adaptation of 'Harry Potter and the Half-Blood Prince'.
  • 3Anticipated $120 million reduction in GAAP and non-GAAP net revenue for the fiscal year ending March 31, 2009.
  • 4Expected impact of $0.13 per share reduction in GAAP and non-GAAP earnings for the fiscal year ending March 31, 2009.
  • 5The financial contribution from the game is now expected in the fiscal year ending March 31, 2010.
  • 6The filing includes standard forward-looking statement disclaimers regarding potential risks and uncertainties.
  • 7The report was filed under Regulation FD Disclosure.

Frequently Asked Questions

Electronic Arts has delayed the release of 'Harry Potter and the Half-Blood Prince' from November 2008 to the summer of 2009. This decision was made to align the game's launch with the release of the Warner Bros. Pictures film adaptation of the same title, aiming to maximize market impact and sales potential.

The delay is expected to reduce EA's net revenue by approximately $120 million and earnings per share (both GAAP and non-GAAP) by approximately $0.13 for the fiscal year ending March 31, 2009. This revenue and earnings contribution will now be recognized in the subsequent fiscal year.

Yes, the filing acknowledges that the company's actual results could differ materially from expectations due to various risks. These include factors such as the timely development and release of the game, competition in the interactive entertainment industry, consumer demand, console hardware availability, consumer spending trends, the seasonal nature of the game segment, potential regulatory developments, foreign exchange rates, and the general health of the U.S. and global economy.