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5. Re: EA Financials Jul 26, 2011, 23:04 Teddy
 
Dev wrote on Jul 26, 2011, 21:59:
The GAAP info shows that EA had $221 million profit instead of a loss, wonder why the huge difference.


They're posting a $221 million dollar profit, AND a $123 million dollar loss if you take into account Deferred Revenue.

Deferred Revenue could be anything from pre-sales of games to individual customers, or major sellers committing money early for some reason for products that are yet unfinished (retailer specific pre-sale bonuses come to mind).

Essentially money that has been given them but can be taken back partially or in full if say a game suffers large delays.

Such is my understanding anyways.

So they made a profit, but some of that is counting on future products to perform well.
 
 
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