EA Electronic Arts, Inc.

Risks

• Our business is intensely competitive and “hit” driven. We may not deliver “hit” products and services, or consumers may prefer our competitors’ products or services over our own.
• Our industry changes rapidly and we may fail to anticipate or successfully implement new or evolving technologies, or adopt successful business strategies, distribution methods or services.
• We may experience security breaches and cyber threats.
• Our business could be adversely affected if our consumer protection, data privacy and security practices are not adequate, or perceived as being inadequate, to prevent data breaches, or by the application of consumer protection and data privacy and security laws generally.
• We may experience outages, disruptions or degradations in our services, products and/or technological infrastructure.
• Negative perceptions about and responses to our brands, products, services and/or business practices may damage our business, and we may incur costs to address concerns.
• Our business depends on the success and availability of platforms developed by third parties and our ability to develop commercially successful products and services for those platforms.
• Government regulations applicable to us may negatively impact our business.
• We may not meet our product development schedules or key events, sports seasons and/or movies that are tied to our product and service release schedule to may be delayed, cancelled or poorly received.
• Our marketing and advertising efforts may fail to resonate with consumers.
• We may not attract, train, motivate and retain key personnel.
• We may experience declines or fluctuations in the recurring portion of our business.
• We could fail to successfully adopt new business models.
• We may be unable to maintain or acquire licenses to include intellectual property owned by others in our games, or to maintain or acquire the rights to publish or distribute games developed by others.
• We rely on the systems of our platform partners who have significant influence over the products and services that we offer on their systems.
• Our business is subject to economic and market conditions, particularly risks generally associated with the entertainment industry.
• Our business partners may be unable to honor their obligations to us or their actions may put us at risk.
• The products or services we release may contain defects, bugs or errors.
• We may be subject to claims of infringement of third-party intellectual property rights.
• From time to time we may become involved in other legal proceedings.
• Our products and brands are subject to the threat of piracy, unauthorized copying and other forms of intellectual property infringement.
• We may experience outages, disruptions and/or degradations of our infrastructure.
• External game developers may not meet product development schedules or otherwise honor their obligations.
• Our financial results are subject to currency fluctuations.
• We utilize debt financing and such indebtedness could adversely impact our business and financial condition.
• Changes in our tax rates or exposure to additional tax liabilities, changes to tax laws and interpretations of tax laws
• could adversely affect our earnings and financial condition.
• Our stock price has been volatile and may continue to fluctuate significantly.