動視暴雪 (ATVI) 2003 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Second Quarter Fiscal 2003 Conference Call for Activision. I would now like to introduce your host for today's call. Her name is Miss Kristin Southey. Please proceed.

女士們、先生們，美好的一天，歡迎參加動視暴雪 2003 財年第二季電話會議。現在我想介紹一下今天電話會議的主持人。她的名字叫克莉絲汀·索西小姐。請繼續。

Good afternoon, and thank you all for joining us today. I'd like to apologize for any static noise you may have heard, just some telephone difficulties. If you did not receive a copy of our press release, please call my office at 310-255-2640.

下午好，感謝大家今天加入我們。對於您可能聽到的靜電噪音以及電話問題，我深表歉意。如果您沒有收到我們的新聞稿副本，請致電我的辦公室：310-255-2640。

Before turning to our results, I would like to review our Safe Harbor Disclosure by reminding everyone that the statements made during this call that are not historical facts are forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in such forward-looking statements are reasonable, a number of important factors could cause our actual future results to differ materially from those expressed in any such forward-looking statements. These important factors and other factors that potentially could affect our financial results are described in our filings with the SEC, including Form 10-K for the year ended March 31, 2002.

在討論我們的結果之前，我想回顧一下我們的安全港披露，提醒大家，本次電話會議中所做的非歷史事實的陳述都是前瞻性陳述。儘管公司認為此類前瞻性陳述中反映的計劃、意圖和期望是合理的，但許多重要因素可能導致我們未來的實際結果與任何此類前瞻性陳述中表達的結果存在重大差異。這些重要因素和其他可能影響我們財務表現的因素在我們向 SEC 提交的文件中進行了描述，其中包括截至 2002 年 3 月 31 日的年度的 10-K 表格。

Now, I'd like to introduce Bobby Kotick, our Chairman and CEO.

現在，我想介紹一下我們的董事長兼執行長 Bobby Kotick。

Thank you, Kristin, and thank you for joining us today.

謝謝你，克里斯汀，也謝謝你今天加入我們。

Once again, net revenues and earnings for the first quarter and first half of the fiscal year were ahead of our expectations and the highest in Activision's history. Our business momentum continues to be fueled by strong industry fundamentals, thoughtful planning, and disciplined execution.

第一季和本財年上半財年的淨收入和利潤再次超出了我們的預期，達到了動視暴雪歷史上的最高水準。強大的行業基礎、深思熟慮的規劃和嚴格的執行繼續推動我們的業務發展。

For the first nine months of the year, our broad product line-up enabled us to solidly maintain our rank as the number-two publisher overall as measured by NPD. Year to date, as we have for the past six years, we grew revenues at more than twice the rate of growth for the console and handheld markets. In calendar 2002 in both absolute and percentage terms, we grew our market share on the console and PC platforms at rates greater than our largest competitor. Our share gains and overall success are the result of our continued focus on product quality and our disciplined business practices. Our games continue to be ranked among the highest quality in the industry, and last week we released one of the highest-rated games of the year, Tony Hawk's Pro Skater 4. The reviews for Tony Hawk's Pro Skater 4 have been exceptional, and the game's made virtually every month's [have gip list] for the holiday season. Ron will discuss the highlights of the successful launch of Pro Skater later in the call.

今年前 9 個月，我們廣泛的產品陣容使我們能夠穩固地保持根據 NPD 衡量的第二大發行商的地位。今年迄今為止，與過去六年一樣，我們的收入成長速度是遊戲機和手持設備市場成長率的兩倍多。 2002 年，無論從絕對值或百分比來看，我們在遊戲機和 PC 平台上的市佔率成長速度均高於我們最大的競爭對手。我們的份額成長和整體成功是我們持續專注於產品品質和嚴格的業務實踐的結果。我們的遊戲繼續躋身業內最高品質之列，上週我們發布了年度收視率最高的遊戲之一：《托尼霍克職業滑板手 4》。《托尼霍克職業滑板手 4》的評論非常出色，而且遊戲幾乎每個月都會成為假期季節的[有gip 清單]。羅恩將在稍後的電話會議中討論 Pro Skater 成功推出的亮點。

Our consistent product quality is the result of a 600-person-strong studio organization that continues to lead the industry in ratings, release schedules and return on investments. This quarter, we added to our talented product development group with the acquisition of Luxoflux, the studio behind our million-unit selling franchise, Vigilante 8. Luxoflux is currently working on two of our most exciting properties, True Crimes and the Sequel to Shrek, which is slated to release with the movie in calendar 2004.

我們始終如一的產品品質源自於擁有 600 名員工的工作室組織，該組織在收視率、發行時間表和投資回報方面繼續引領業界。本季度，我們收購了Luxoflux，為我們才華橫溢的產品開發團隊增添了新成員。Luxoflux 是我們銷售百萬份的《Vigilante 8》系列背後的工作室。Luxoflux 目前正在開發我們最令人興奮的兩部作品：《真實犯罪》和《史瑞克》續集。預計 2004 年與電影一起上映。

Our studios are developing products based on some of the most recognizable and successful intellectual properties. This quarter we expanded our brand portfolio, and today we're announcing a new relationship with Nickelodeon. We acquired the exclusive worldwide rights to publish games based on the best-selling book series, "Lemony Snicket, a Series of Unfortunate Events." "Lemony Snicket" is a Harry Potter-like children's book series that has sold millions of copies, and Viacom has great plans for a new motion picture.

我們的工作室正在開發基於一些最知名和最成功的知識產權的產品。本季我們擴大了品牌組合，今天我們宣布與 Nickelodeon 建立新的合作關係。我們獲得了基於暢銷書系列「Lemony Snicket，一系列不幸事件」的遊戲的全球獨家發行權。 《雷蒙·斯尼基》是一部類似哈利波特的兒童讀物系列，已售出數百萬冊，維亞康姆也有拍攝新電影的宏偉計劃。

Our success is reflected in ever-improving operating results. Operating margin expansion, as you know, has been a management priority. We ended last fiscal year with a combined operating margin of 10.2 percent, and today's updated guidance includes the projected margin of 14.5 percent for this fiscal year.

我們的成功體現在不斷改善的經營績效。如您所知，擴大營業利潤率一直是管理階層的首要任務。在上一財年結束時，我們的綜合營業利潤率為 10.2%，今天更新的指導包括本財年 14.5% 的預期利潤率。

We continue to focus on the strength of our balance sheet and as a result, we have one of the best balance sheets in the business. Our substantial cash position, low inventories and low DSOs provide us with a great competitive advantage in the acquisition of both intellectual properties and development resources. With market confidence and stronger visibility of our products [indiscernible], we are once again raising our revenue and EPS guidance for fiscal '03. Our increased revenue guidance represents a five-year compounded annual growth rate of 24 percent and earnings-per-share growth rate of 56 percent, about the best in the industry.

我們繼續關注資產負債表的實力，因此，我們擁有業內最好的資產負債表之一。我們充足的現金狀況、低庫存和低 DSO 為我們在獲取知識產權和開發資源方面提供了巨大的競爭優勢。隨著市場信心的增強和我們產品知名度的提高[音頻不清晰]，我們再次提高了 03 財年的收入和每股收益指引。我們上調的收入指引意味著五年複合年增長率為 24%，每股收益增長率為 56%，約為行業中最好的。

In fiscal '04, we expect to surpass the $1 billion revenue mark. Software and hardware market potential for calendar '03 remains strong, and our scale, the breadth of our product offering, and the proven ability to consistently create high-quality products will drive our growth and the operating margin expansion, which will ensure consistent superior returns to our shareholders.

04 財年，我們預期營收將突破 10 億美元大關。 '03 日曆的軟體和硬體市場潛力仍然強勁，我們的規模、產品供應的廣度以及持續創造高品質產品的經過驗證的能力將推動我們的成長和營業利潤率的擴張，這將確保持續的卓越回報致我們的股東。

Fiscal '04 is likely to be our best year ever, and fiscal '05 is already looking like a terrific year. We have a number of leading brands with mass market appeal, including Spider-Man, Shrek, Star Wars and Triple X. The target demographic for these properties coincides with the mass market base of the hardware cycle, which we believe is likely to materialize in our fiscal '05. We've had a long history of revenue growth and operational success and expect the next few years will continue to provide great opportunities for strong performance.

04 財年可能是我們有史以來最好的一年，而 05 財年看起來已經是了不起的一年。我們擁有許多具有大眾市場吸引力的領導品牌，包括《蜘蛛人》、《史瑞克》、《星際大戰》和《Triple X》。這些產品的目標族群與硬體週期的大眾市場基礎相吻合，我們相信這很可能在我們的 05 財年。我們有著悠久的營收成長和營運成功歷史，預計未來幾年將繼續提供強勁業績的絕佳機會。

Our president, Ron Doornink, will now share with you the highlights of our record performance and our updated guidance.

我們的總裁 Ron Doornink 現在將與您分享我們創紀錄的業績亮點和更新的指導方針。

Thank you, Bobby.

謝謝你，鮑比。

For the September quarter, net revenues were a record $169 million, up 21 percent versus last year. Earnings per share were also a September record, $0.13, up $0.09 versus last year. For the first half of this fiscal year, net revenues were a record $360 million, up 44 percent over last year. Earnings per share for the first half were also a record $0.43, up $0.39 versus last year.

9 月季度的淨收入達到創紀錄的 1.69 億美元，比去年增長 21%。 9 月每股收益也創歷史新高，為 0.13 美元，比去年增加 0.09 美元。本財年上半年，淨收入達到創紀錄的 3.6 億美元，比去年成長 44%。上半年每股盈餘也創歷史新高，達到 0.43 美元，比去年同期成長 0.39 美元。

Our record results for the quarter were driven by solid, worldwide performance from new releases such as Street Hoops, Blade, and Medieval: Total War. They all performed well. Street Hoops is continuing to sell well in the U.S. mass retailers, while Blade and Medieval are showing excellent staying power internationally. In fact, the U.K. magazine, PC Gamer, just voted Medieval: Total War the best PC game of all time, knocking the long-term leader, Half-Life, off the number-one spot.

我們本季創紀錄的業績得益於《街頭籃球》、《刀鋒》和《中世紀：全面戰爭》等新遊戲在全球的強勁表現。他們都表現得很好。 Street Hoops 在美國大眾零售商中繼續暢銷，而 Blade 和 Medieval 在國際上表現出出色的持久力。事實上，英國雜誌《PC Gamer》剛剛將《中世紀：全面戰爭》評選為有史以來最好的 PC 遊戲，將長期領先的《半條命》從第一名的位置上擠了下來。

Our catalog business also performed above expectation, led by the Spider-Man, Tony Hawk and Soldier of Fortune franchises. In fact, in Spider-Man and Tony Hawk, Activision has two of the best-selling franchises in the business for the first nine months of this calendar year, and both franchises are going into the holiday season with great momentum.

我們的目錄業務也表現超乎預期，其中以《蜘蛛人》、《東尼霍克》和《財富戰士》系列為首。事實上，《蜘蛛人》和《東尼霍克》是動視在今年前 9 個月中擁有業界最暢銷的兩款系列作品，而這兩款系列產品都將以強勁的勢頭進入假日季。

In addition to Street Hoops, we released two other action sports titles in the quarter, Mat Hoffman's Pro BMX and Kelly Slater's Pro Surfer. Street Hoops was positioned as a unique standalone proposition, which consumers loved, resulting in the title, "nicely exceeding expectations." Consumers saw Mat Hoffman and Kelly Slater, which were positioned as extensions of the Tony Hawk Pro Skater concept as been there/done that games, causing them to under perform. In that, we gained very valuable learning from the different approaches we took with these three titles which we're using to refine our action sports strategy in the execution of future titles.

除了 Street Hoops 之外，我們在本季度還發布了另外兩款動作運動遊戲，Mat Hoffman 的 Pro BMX 和 Kelly Slater 的 Pro Surfer。 《Street Hoops》被定位為一個獨特的獨立主張，深受消費者喜愛，因此獲得了「遠遠超出預期」的標題。消費者看到了馬特·霍夫曼（Mat Hoffman）和凱利·斯雷特（Kelly Slater），他們被定位為托尼霍克職業滑冰者概念的延伸，因為他們在那裡/做過那些比賽，導致他們表現不佳。在這方面，我們從這三個遊戲中採取的不同方法中獲得了非常有價值的學習，我們正在使用這些方法來完善我們在執行未來遊戲時的極限運動策略。

We remain committed to the action sports genre. The action sports category is large and very profitable, and is likely to grow to over $500 million by calendar year-end in North America alone, up from just $20 million five years ago. All in all, it's a great segment with a tremendous amount of potential, and we plan to be the category leader for a long time to come.

我們仍然致力於極限運動類型。極限運動類別規模龐大且利潤豐厚，光是在北美地區到年底就可能成長到超過 5 億美元，而五年前僅為 2,000 萬美元。總而言之，這是一個具有巨大潛力的偉大細分市場，我們計劃在未來很長一段時間內成為該類別的領導者。

Back to our quarterly results.

回到我們的季度業績。

Manufacturing and distribution expense was 48 percent in the second quarter, lower than anticipated, due mainly to revenue differences -- revenue mix differences, that is. Operating expenses, excluding manufacturing and distribution costs, were about 46 percent of revenues, up slightly versus expectation due to higher royalties and product development expenses resulting from over-performance of our publishing business.

第二季製造和分銷費用為 48%，低於預期，主要是由於收入差異——即收入組合差異。營運費用（不包括製造和分銷成本）約佔收入的 46%，略高於預期，原因是我們出版業務的超額業績導致特許權使用費和產品開發費用增加。

During the quarter, we increased our operating margin, a key company focus, by over 440 basis points versus last year. Our net income for the quarter was $9 million, a $7 million increase over last year, and for the first six months of the fiscal year, net income totaled $30 million, up 28 million versus last year.

本季度，我們將營業利潤率（公司的重點）與去年相比提高了 440 個基點以上。我們本季的淨利潤為 900 萬美元，比去年增加了 700 萬美元，本財年前六個月的淨利潤總計為 3000 萬美元，比去年增加了 2800 萬美元。

Turning now to our balance sheet –

現在轉向我們的資產負債表 –

On September 30, we had $554 million in cash and short-term investments, versus $550 million on June 30. As of September 30, we had $610 million of working capital versus 603 million on June 30. Shortly after the quarter ended, we announced a $150 million share buyback program. We will not be commenting on this program today, but the status updates will be provided in the future. Despite several large one-time payments for the long-term intellectual property rights, our operating cash flow for the quarter was positive, and for the six months ending September 30, operating cash flow was $22 million.

截至9 月30 日，我們擁有5.54 億美元的現金和短期投資，而6 月30 日為5.5 億美元。截至9 月30 日，我們擁有6.1 億美元的營運資金，而6 月30 日為6.03 億美元。季度結束後不久，我們宣布1.5 億美元的股票回購計畫。我們今天不會對此計劃發表評論，但狀態更新將在將來提供。儘管為長期知識產權支付了幾筆大筆一次性付款，但我們本季的營運現金流為正，截至 9 月 30 日的六個月，營運現金流為 2,200 萬美元。

The net accounts receivable balance on September 30 was $61 million, down 25 million versus the same period last year. DSOs were 33 days, a decrease of 24 days versus the prior year and below our target of [50] days partly because of strong sales early in the quarter, as well as our ongoing focus on this important metric.

9月30日應收帳款淨餘額為6,100萬美元，較去年同期減少2,500萬美元。 DSO 為 33 天，比前一年減少了 24 天，低於我們 [50] 天的目標，部分原因是本季度初期銷售強勁，以及我們持續關注這一重要指標。

The accounts receivable reserve of $54 million equals 47 percent of gross accounts receivable. The reserve level remains higher than the historical average for two reasons. One, our publishing reserves are up in order to prepare for console software price declines. And, two, our European distribution division's reserves are up as we continue to expand our business overseas with large national accounts like Wal-Mart.

應收帳款準備金為 5,400 萬美元，相當於應收帳款總額的 47%。儲備水準仍然高於歷史平均有兩個原因。第一，我們增加了出版儲備，以便為主機軟體價格下降做好準備。第二，隨著我們繼續透過沃爾瑪等大型國民帳戶拓展海外業務，我們歐洲分銷部門的儲備也有所增加。

Inventories at the end of the quarter were $25 million, unchanged versus the prior quarter, and down $9 million versus last year. Of the 25 million, $11 million relates to our own publishing business. The remaining 14 million is third-party product residing in our European distribution companies.

本季末庫存為 2,500 萬美元，與上一季持平，比去年減少 900 萬美元。在這 2500 萬美元中，有 1100 萬美元與我們自己的出版業務有關。剩下的 1400 萬是我們歐洲分銷公司的第三方產品。

Capital software development costs -- or capitalized software development costs on September 30 were $56 million, representing 115 projects in development. Capitalized development costs were up 6 million versus June 30, as we added a number of new projects. Virtually all of the $56 million balance on September 30 relates to products that will be released in the future, with less than 3 percent for products that have already been released in North America, which is mostly due to the timing of international releases.

截至 9 月 30 日，資本軟體開發成本（或資本化軟體開發成本）為 5,600 萬美元，代表正在開發的 115 個專案。由於我們增加了許多新項目，資本化開發成本比 6 月 30 日增加了 600 萬美元。 9 月 30 日的 5,600 萬美元餘額幾乎全部與未來將發布的產品有關，其中不到 3% 是已經在北美發布的產品，這主要是由於國際發布的時間表。

On September 30, capitalized intellectual property licenses were $44 million, up mainly due to one-time payments made for long-term IP rights, including the extension of Tony Hawk's contract from 2015, which we discussed in our last call, and a payment made to secure the videogame rights to the next Spider-Man movie slated to release in the spring of 2004. The Tony Hawk and Spider-Man properties have generated over $700 million in revenues in the past four years, and we're confident that our investments in these properties will yield long-term benefits.

截至9 月30 日，資本化知識產權許可為4400 萬美元，主要是由於長期知識產權的一次性付款，包括將托尼·霍克(Tony Hawk) 的合約從2015 年延長（我們在上次電話會議中討論過），以及支付的一筆款項確保下一部《蜘蛛人》電影的視頻遊戲版權將於2004 年春季上映。《托尼霍克》和《蜘蛛人》系列在過去四年中創造了超過7 億美元的收入，我們對我們的投資充滿信心這些財產將產生長期利益。

Now, I'd like to share our thoughts on the overall market, starting with the hardware forecast.

現在，我想從硬體預測開始分享我們對整個市場的看法。

As of calendar year-end 2001, the installed base in North America for next-generation systems, including handheld, was about 15 million units. Today, that installed base has grown to almost 25 million units, and we're projecting it will grow to a healthy 35 million units by calendar year-end.

截至 2001 年底，北美下一代系統（包括手持設備）的安裝量約為 1,500 萬台。如今，該安裝量已成長至近 2,500 萬台，我們預計到年底，該安裝量將健康成長至 3,500 萬台。

Looking at each system individually, at the end of September, the PlayStation 2 had an installed base of 11.3 million units in North America. Based on the strength of sell-through to date, we're increasing our installed base projection to 16 million PlayStation 2 consoles by calendar year-end.

單獨查看每個系統，截至 9 月底，PlayStation 2 在北美的安裝量為 1,130 萬台。根據迄今為止的銷售情況，我們預計到年底，PlayStation 2 遊戲機的安裝量將達到 1,600 萬台。

As of September 30, the GameCube had an installed base of about 2.3 million units. We believe that the GameCube is poised for growth at the Christmas quarter driven by the release of more high-quality software and expect an installed base by the end of the calendar year of about four million units.

截至 9 月 30 日，GameCube 的安裝量約為 230 萬台。我們相信，在更多高品質軟體發布的推動下，GameCube 將在聖誕節季度實現成長，並預計到年底安裝量將達到約 400 萬台。

The Xbox is continuing to show good consumer demand, particularly in the U.S. Microsoft ended the month of September with an installed base of about 2.9 million units. We're projecting that the Xbox installed base will be at about 4.5 million units by year-end.

Xbox 持續展現良好的消費者需求，特別是在美國。截至 9 月份，微軟的安裝量約為 290 萬台。我們預計到年底 Xbox 安裝量將達到約 450 萬台。

At the end of September, the Game Boy Advance had in the U.S. an installed base of 7.9 million units, and we expect it to grow to 10.5 million units by calendar year-end.

截至 9 月底，Game Boy Advance 在美國的安裝量為 790 萬台，我們預計到年底將成長到 1,050 萬台。

Looking ahead to calendar '03, we're expecting North American hardware sales to be quite strong, with the installed base increasing from 35 million to at least 55 million, with a price cut likely by the second half of the year.

展望 03 年，我們預計北美硬體銷售將相當強勁，安裝量將從 3,500 萬增加到至少 5,500 萬，下半年可能會降價。

Now, I'd like to provide you with our thoughts on this videogame software market.

現在，我想向您提供我們對這個視頻遊戲軟體市場的看法。

First, I should point out that when comparing market forecasts across companies, it is critically important to know exactly how each company defines its market. Some companies exclude handheld numbers, others exclude the PC market, and some only use North American statistics. We define our market to include all major platforms in North America and Europe.

首先，我應該指出，在比較不同公司的市場預測時，準確了解每家公司如何定義其市場至關重要。有些公司不包括手持設備數據，有些公司不包括個人電腦市場，有些公司只使用北美統計數據。我們定義的市場包括北美和歐洲的所有主要平台。

That said, calendar year-to-date through September 2002, the combined North American and European software markets for consoles, handheld and PC grew a strong 21 percent, driven by the growth in the installed base, coupled with a continued release of high-quality software.

也就是說，截至 2002 年 9 月，北美和歐洲的遊戲機、掌上型電腦和 PC 軟體市場在安裝基數成長以及持續發布的高優質軟體。

Since our last call, the overall software market fundamentals have remained strong, and we have increased our software market forecast for calendar 2002. All the projections that I am about to provide include the U.S. and European markets. We're projecting that the videogame software market, including console, handheld and PC, will grow between 18 and 20 percent this calendar year, driven by a very strong growth of the current generation console segment. For calendar 2003, we are projecting healthy growth of 17 to 20 percent for the total console market, including software for both the past and the current platforms. The combined growth rates for the console and handheld market is 15 to 18 percent, and adding PC software, the expected growth rate for the console, handheld and PC videogame software is 13 to 17 percent. And, again, these growth rates are for the North American and European markets combined and reflect our expectation that Europe will not grow quite as fast as the U.S.

自從我們上次電話會議以來，整個軟體市場的基本面依然強勁，我們提高了 2002 年軟體市場的預測。我將提供的所有預測都包括美國和歐洲市場。我們預計，在當前一代遊戲機市場強勁成長的推動下，包括遊戲機、掌上型電腦和 PC 在內的電玩軟體市場今年將成長 18% 至 20%。對於 2003 年，我們預計整個遊戲機市場（包括過去和目前平台的軟體）將健康成長 17% 至 20%。遊戲機和手持裝置市場的綜合成長率為 15% 至 18%，加上 PC 軟體，遊戲機、手持裝置和 PC 電玩軟體的預期成長率為 13% 至 17%。同樣，這些成長率是北美和歐洲市場的總和，反映了我們的預期，即歐洲的成長速度不會像美國那麼快。

With continued strong market fundamentals in place, our second-half fiscal '03 business plan grows our top line, expands our operating margin and keeps our balance sheet strong. Based on our second quarter over performance and better visibility of our strong product slate, we're increasing our fiscal '03 revenue guidance from $920 million to $934 million, representing year-over-year growth of 19 percent, and a five-year growth rate of 24 percent. We're increasing our fiscal '03 EPS guidance from $1.25 to $1.29, representing year-over-year EPS growth of 47 percent and a five-year growth rate of 56 percent.

憑藉持續強勁的市場基本面，我們的 03 財年下半年業務計劃增加了我們的收入，擴大了我們的營業利潤率並維持了我們強勁的資產負債表。基於我們第二季度的業績和對我們強大產品系列的更好的了解，我們將 03 財年的收入指導從 9.2 億美元提高到 9.34 億美元，同比增長 19%，實現了五年的增長率為24%。我們將 03 財年每股收益指引從 1.25 美元提高到 1.29 美元，每股盈餘年增 47%，五年成長率為 56%。

As a reminder, one year ago in our Q2 conference call we provided fiscal '03 guidance of 800 million in projected revenue and $0.83 in EPS. Today, we're well ahead of that guidance as a result of better market performance overall and continued strong execution on our part.

提醒一下，一年前，在我們第二季的電話會議上，我們提供了 03 財年的預期收入指引值 8 億美元，每股收益 0.83 美元。今天，由於整體市場表現更好以及我們持續強勁的執行力，我們遠遠領先於這項指引。

For fiscal 2003, we expect manufacturing and distribution costs of 50.3 percent of net revenues, with operating expenses, including royalties, at 35 percent. We project interest income of less than 1 percent. The F '03 tax rate should be 36 percent, and our fully diluted share count, 71.9 million.

對於 2003 財年，我們預計製造和分銷成本佔淨收入的 50.3%，其中包括特許權使用費在內的營運費用佔 35%。我們預計利息收入將低於 1%。 03 財年的稅率應為 36%，我們完全稀釋後的股份數量為 7,190 萬股。

For the third quarter, we're projecting revenues of $435 million and earnings per share of $0.82. The [indiscernible] rate distribution cost for the quarter will be 52 percent, operating expenses around 27 percent, and interest income of .6 percent, the effective tax rate, 36 percent, diluted shares outstanding, 73.1 million.

我們預計第三季營收為 4.35 億美元，每股收益為 0.82 美元。本季的[音訊不清楚]稅率分配成本將為 52%，營運費用約為 27%，利息收入為 0.6%，有效稅率為 36%，攤薄後的流通股為 7,310 萬股。

With respect to the pricing environment, it's still a risk factor. We expect console launch pricing to hold at 49.99 at least through the end of the third quarter, which is a positive. At the same time, we are beginning to see signs of an accelerated price decay curve for under-performing titles. Our reserve provides for the scenario that our titles under perform and require earlier price action.

就定價環境而言，它仍然是一個風險因素。我們預計至少到第三季末主機發布定價將保持在 49.99 美元，這是一個積極的因素。同時，我們開始看到表現不佳的遊戲價格加速衰減的跡象。我們的儲備金是針對我們的產品表現不佳並需要更早採取價格行動的情況提供的。

The number-one focused title for our third quarter is, of course, Tony Hawk's Pro Skater 4, which here in North America we released on five platforms on October 23, six days earlier than last year's Tony Hawk 3 launch. Tony Hawk 4 will be released in all major European territories in mid-November, depending on the territory, one to two weeks than last year. By releasing the game earlier, we increase the number of sell-through days between now and the end of the holiday season by upwards of 10 percent.

我們第三季的頭號焦點遊戲當然是《托尼霍克職業滑手4》，我們於10 月23 日在北美的五個平台上發布了該遊戲，比去年的《托尼霍克3》早了六天。 《東尼霍克 4》將於 11 月中旬在歐洲所有主要地區上映，具體時間根據地區而定，比去年增加一到兩週。透過提前發布遊戲，我們從現在到假期季節結束期間的售完天數增加了 10% 以上。

Reviews for Tony Hawk 4 have been spectacular, better, even than last year's amazing reviews of Tony Hawk 3. The consumer anticipation for the title is also very strong. We know this from our internal, as well as external research that we have conducted. In addition, Ziff-Davis conducted the study over the summer in which randomly selected consumers were asked about their interest in buying sequels to Madden, Bond, WWF, Tony Hawk, and many other leading videogame franchises. The results showed that more people were interested in the Tony Hawk sequel than was the case for Madden, Bond or WWF, which is a positive indicator for Tony Hawk 4.

《托尼霍克 4》的評論非常精彩，甚至比去年《托尼霍克 3》的好評還要好。消費者對這款遊戲的期待也非常強烈。我們從我們進行的內部和外部研究中了解到這一點。此外，齊夫-戴維斯在今年夏天進行了一項研究，隨機選擇的消費者被詢問他們是否有興趣購買《Madden》、《007》、《WWF》、《托尼霍克》和許多其他領先電玩遊戲系列的續集。結果顯示，與《Madden》、《007》或《WWF》相比，更多人對《托尼霍克》續集感興趣，這對《托尼霍克 4》來說是一個積極的指標。

Having said that, we have modeled the Tony Hawk franchise to decline as a percentage of revenue versus last year. This was prudent considering that Tony Hawk was the number-one franchise of all videogames last year and considering that this year's market is likely to be more competitive. That said, the launch of Tony Hawk 4 is off to a good start. We shipped out the unit volumes in line with last year's launch numbers, and sell-through reports for the first few days are solid. In summary, we believe that the Tony Hawk franchise is on track to be among this quarter's top-performing titles in the industry.

話雖如此，我們對《托尼霍克》系列的模型進行了建模，使其佔收入的百分比與去年相比有所下降。考慮到《托尼霍克》是去年所有電玩遊戲中排名第一的系列，考慮到今年的市場競爭可能會更加激烈，這是謹慎的做法。儘管如此，《東尼霍克 4》的推出還是一個好的開始。我們的出貨量與去年的發布數量一致，前幾天的銷售報告也很可靠。總而言之，我們相信《東尼霍克》系列有望成為本季業界表現最佳的遊戲之一。

We also expect positive performance from a number of other titles in our slate, including Minority Report, for example, a November release timed to take full advantage of the movie's DVD release. Minority Report was created by our Treyarch Studio, which also developed the tremendously successful Spider-Man movie game. Like Spider-man, Minority Report is also a terrific game that definitely has up-side potential. Also slated for multi-platform release this quarter is Rally Fusion: Race of Champions, an action-packed racing game targeted primarily for the international markets.

我們也預計我們的名單中的其他一些影片也會有積極的表現，其中包括《少數派報告》，例如，它將於 11 月上映，以充分利用該電影 DVD 的發行優勢。 《少數派報告》由我們的 Treyarch Studio 製作，工作室也開發了非常成功的蜘蛛人電影遊戲。與《蜘蛛人》一樣，《少數派報告》也是一款出色的遊戲，絕對具有上升潛力。預計本季在多平台發表的還有《Rally Fusion：Race of Champions》，這是一款主要針對國際市場的動感十足的賽車遊戲。

For the PlayStation 2 and GameCube, we have Reckless, an updated version of the top-selling Xbox title, and Street Hoops for the GameCube. Also launching on the Game Boy Advance is Iron Man, the popular Marvel franchise, and Disney's Tarzan, a proven holiday favorite and sequel to the million-unit-selling Tarzan for the Game Boy Color. We recently also released X-men: Next Dimension on multiple platforms, a proven property with mass market appeal.

對於 PlayStation 2 和 GameCube，我們有最暢銷 Xbox 遊戲的更新版本《Reckless》，以及 GameCube 的《Street Hoops》。在Game Boy Advance 上發布的還有廣受歡迎的漫威系列遊戲《鋼鐵人》，以及迪士尼的《人猿泰山》，後者是公認的節日最愛，也是Game Boy Color 上銷量百萬份的《人猿泰山》的續集。我們最近也在多個平台上發布了《X 戰警：下一個維度》，這是一款經過驗證的、具有大眾市場吸引力的作品。

The quarter will also mark this week's DVD release of the "Spider-Man" movie. "Spider-Man" is going to be a key holiday focus in several of our biggest customers. In addition, we know that Sony is spending heavily on advertising, and we're hearing that DVD sales are expected to exceed 20 million units. The DVD includes three levels of the Spider-Man game, a fantastic sampling tool for us. This is just one example of the many ways in which we are coordinating the massive "Spider-Man" DVD marketing programs with our own videogame marketing activities.

本季也標誌著《蜘蛛人》電影的 DVD 將於本週發行。 「蜘蛛人」將成為我們幾個最大客戶的節日焦點。此外，我們知道索尼在廣告上投入巨資，而且我們聽說 DVD 銷量預計將超過 2000 萬張。 DVD 包含三個蜘蛛人遊戲的關卡，對我們來說是一個很棒的取樣工具。這只是我們協調大規模「蜘蛛人」DVD 行銷計畫與我們自己的電玩遊戲行銷活動的多種方式之一。

For the fourth quarter of fiscal '03, we're projecting revenues of $139 million and earnings of $0.02 per share. Drive titles for the fourth quarter will include our Wakeboarding title, [Tentu 3], and Star Trek Elite Force 2. Demos of the Wakeboarding title are on the Tony Hawk 4 disc, which is an excellent way to create interest in that title.

對於 03 財年第四季度，我們預計營收為 1.39 億美元，每股收益為 0.02 美元。第四季的Drive 遊戲將包括我們的滑水遊戲《Tentu 3》和《星際爭霸戰精英部隊2》。滑水遊戲遊戲的展示位於Tony Hawk 4 光碟上，這是激發對該遊戲興趣的絕佳方式。

We're projecting manufacturing and distribution costs for the fourth quarter of 58 percent, operating expenses, 42 percent, and interest income, 1.5 percent, the effective tax rate, 36 percent, diluted shares outstanding, 73.5 million.

我們預計第四季的製造和分銷成本為 58%，營運費用為 42%，利息收入為 1.5%，有效稅率為 36%，稀釋後流通股數為 7,350 萬股。

Now, looking to fiscal 2004, the year already looks very solid, with excellent market fundamentals and a strong well-diversified product line-up. We expect an installed base of next-gen console and handheld devices in North America alone of about 55 million units, a 57-percent increase over this year. Our fiscal '04 slate is our largest and most diverse ever.

現在，展望 2004 財年，這一年看起來已經非常穩健，擁有良好的市場基本面和強大且多元化的產品陣容。我們預計，光是在北美地區，下一代遊戲機和手持設備的安裝量就將達到約 5,500 萬台，比今年成長 57%。我們 04 財年的名單是有史以來規模最大、最多樣化的。

For the next-gen consoles, our slate offers a combination of proven properties with a few very promising originals. We have True Crime, for example – True Crime Streets of L.A. is the full title – which is being developed by our newly acquired studio, Luxoflux. The game just keeps getting more and more exciting and continues to receive stronger and stronger consumer and retailer interest. We have the highly anticipated X-Men movie game, Wolverine's Revenge, slated for release in May of 2003. As we did with Spider-Man, this game will be offered on five platforms and launched just ahead of the movie. The first "X-Men" movie generated $300 million at the box office two years ago, and this sequel is expected to perform even better. We will also have the second marvelous superhero offering, the Fantastic 4 game slated for multi-platform release later this – later next year.

對於下一代遊戲機，我們的板岩提供了經過驗證的特性與一些非常有前途的原始特性的組合。例如，我們有《True Crime》——全名為《True Crime Streets of L.A.》——它是由我們新收購的工作室 Luxoflux 開發的。該遊戲變得越來越令人興奮，並繼續受到越來越強烈的消費者和零售商的興趣。我們有備受期待的X 戰警電影遊戲《金剛狼的復仇》，計劃於2003 年5 月發行。正如我們對《蜘蛛人》所做的那樣，這款遊戲將在五個平台上提供，並在電影上映之前發布。第一部《X戰警》電影兩年前就取得了3億美元的票房，這部續集預計表現會更好。我們還將推出第二款精彩的超級英雄產品，即《神奇四俠》遊戲，計劃於今年稍後（明年稍後）在多平台上發布。

We are announcing today a significant addition to our future line-up, Lemony Snicket, a Series of Unfortunate Events, a Harry Potter-like multimillion-selling book series which is being made into a major motion picture. We obtained these rights and a new relationship with Nickelodeon and will develop a full slate of games planned for release simultaneous with the movie. We're very excited about this project and our new relationship with Nickelodeon.

今天，我們宣布未來的產品陣容中又增加了一個重要成員，《Lemony Snicket》，一系列不幸的事件，這是一個類似於哈利波特的數百萬銷量的圖書系列，正在被拍成一部主要的電影。我們獲得了這些權利並與 Nickelodeon 建立了新的關係，並將開發計劃與電影同時發行的全套遊戲。我們對這個項目以及我們與 Nickelodeon 的新關係感到非常興奮。

One of our higher priorities for fiscal '04 is the return of Pitfall Harry, one of Activision's most valuable proprietary intellectual properties. The game is making great progress and continues to test exceptionally well with consumers. We also have a promising Disney title in development that blends the world of skateboarding with a broad range of Disney characters that should appeal very well to the growing base of younger consumers.

我們 04 財年的首要任務之一是《Pitfall Harry》的回歸，這是動視暴雪最有價值的專有智慧財產權之一。該遊戲正在取得巨大進展，並繼續在消費者中得到非常好的測試。我們也正在開發一款很有前途的迪士尼遊戲，它將滑板世界與各種迪士尼角色融為一體，應該會很好地吸引不斷增長的年輕消費者群體。

Our action sports line-up includes the next Tony Hawk sequel, as well as the Motor Cross game. Motor Cross continues to grow in popularity, and we've identified a great concept for a game featuring Travis Pastrana, widely regarded as the leader of the sport. And we also have a Street Hoops sequel in development.

我們的極限運動系列包括下一部《東尼霍克》續集，以及《Motor Cross》遊戲。 Motor Cross 的受歡迎程度持續成長，我們為 Travis Pastrana 打造的遊戲確定了一個很棒的概念，他被廣泛認為是這項運動的領導者。我們也正在開發《街頭籃球》的續集。

Over the last two years, we have limited our PC releases to only a few very high-quality titles. In fiscal '04, our PC slate is significantly larger, driven by a number of proven properties centered around its Doom 3, already next year's most anticipated PC title. Another big release is the successor to this year's Medieval Total War. Based on completely new technology, this title promises to take the Total War franchise to the top of its genre. We're looking forward to our first Infinity War title. As you may recall, they worked for EA on a massive hit, Medal of Honor, Allied Assault. Their project is deep in development, and I can tell you that it looks very promising. Also in development is a first-person action game using id technology at our Gray Matter studio, the creators of Return to Castle Wolfenstein. There are several other exciting PC projects in the works that we will tell you about in the future.

在過去的兩年裡，我們將 PC 版本限制為只有少數非常高品質的遊戲。在 04 財年，我們的 PC 陣容顯著擴大，這是由以《毀滅戰士 3》為中心的一系列經過驗證的特性推動的，而《毀滅戰士 3》已經是明年最受期待的 PC 遊戲。另一個重要版本是今年《中世紀全面戰爭》的繼任者。該遊戲基於全新技術，預計將《全面戰爭》系列推向同類遊戲的頂峰。我們期待我們的第一個《無限之戰》遊戲。您可能還記得，他們曾為 EA 製作過熱門遊戲《榮譽勳章》、《盟軍突擊》。他們的專案正在深入開發中，我可以告訴你，它看起來非常有前途。另外，我們的 Gray Matter 工作室（《重返德軍總部》的創作者）正在開發一款使用 id 技術的第一人稱動作遊戲。還有其他幾個令人興奮的 PC 項目正在進行中，我們將在未來向您介紹。

Well, on our last call, we provided initial fiscal '04 guidance for modeling purposes and increased our EPS expectation by $0.15 to $1.35 and raised our revenue projection to $1,025,000,000. The holiday season will provide greater visibility of software pricing, hardware sales momentum, and overall consumer spending. We will finalize our fiscal '04 operating plan in early January, after which we will update you on our release schedule and operating expectations. We expect fiscal 2004 will be the biggest year ever for videogames overall, and with 75 products planned for release next year, we also expect it to be the biggest year ever in terms of Activision's revenues and earnings.

嗯，在我們上次的電話會議上，我們出於建模目的提供了 04 財年的初步指導，並將 EPS 預期上調了 0.15 美元至 1.35 美元，並將收入預測上調至 1,025,000,000 美元。假期季節將提供更清晰的軟體定價、硬體銷售動能和整體消費者支出的可見性。我們將在一月初敲定 04 財年的營運計劃，之後我們將向您通報我們的發佈時間表和營運預期的最新情況。我們預計 2004 財年將是電玩產業有史以來規模最大的一年，明年計劃發布 75 款產品，我們還預計 2004 財年將成為動視暴雪收入和盈利有史以來規模最大的一年。

We look forward to sharing our holiday quarter results with you in January, and thank you for joining us to review today's record results.

我們期待與您分享一月份的假期季度業績，並感謝您與我們一起回顧今天的創紀錄業績。

We will now open the call to questions, and, please, after the call, direct your inquiries to Kristin Southey at the following telephone number, area code 310-255-2635. And with that, Operator?

我們現在將開始電話提問，請在電話結束後將您的問題直接聯繫 Kristin Southey，電話號碼如下，區號 310-255-2635。那麼，幹員？

Thank you very much, sir. And if you have a question at this time, please press the one key on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. And one moment for our first question.

先生非常感謝您。如果您此時有疑問，請按按鍵式電話上的一個鍵。如果您的問題已得到解答或您希望將自己從佇列中刪除，請按井號鍵。請稍等一下我們的第一個問題。

Okay, our first question will come from [Mike Wallace's] line. Please proceed.

好的，我們的第一個問題來自[麥克華萊士]。請繼續。

Hi. I have a couple questions. First, obviously in the last week, there's been a lot of talk about, you know, how healthy the business is and what the retail environment is like. Could you start with that, just tell us what kind of feedback you're getting or how nervous retailers are? You know, how would you gauge the health of the business, that sort of thing?

你好。我有幾個問題。首先，顯然在上週，有很多關於業務的健康狀況以及零售環境的討論。您能否先告訴我們您收到了什麼樣的回饋，或者零售商有多緊張？你知道，你會如何衡量業務的健康狀況之類的事情？

Sure, thanks for bringing it up. I know it's been an issue, and there's been a lot of discussion. Here is our perspective. First of all, a couple of facts. Year to date, calendar year-to-date, market is up 21 percent pretty evenly between North America and Europe. We're seeing good momentum in the marketplace. For example, North America, the market was up 8 percent in July, 29 percent in August, 36 percent in September. Looking at the hardware numbers, we're feeling good about those as well, good momentum there as well. Specifically, the PlayStation 2 is performing very well, ahead of our expectations earlier this year. While the Xbox and GameCube's performance is a bit more mixed and the [GBA] market has lost some of its very strong momentum, overall, the market is performing better than we forecasted earlier this year, so we're pleased with that and we think it bodes well for the holiday season.

當然，謝謝你提出來。我知道這是一個問題，並且已經有很多討論。這是我們的觀點。首先，有幾個事實。今年迄今，北美和歐洲市場均成長了 21%。我們看到市場勢頭良好。例如，北美市場7月上漲8%，8月上漲29%，9月上漲36%。看看硬體數據，我們也感覺良好，勢頭也很好。具體來說，PlayStation 2 的表現非常好，超出了我們今年早些時候的預期。雖然Xbox 和GameCube 的表現有點參差不齊，而且[GBA] 市場已經失去了一些非常強勁的勢頭，但總體而言，市場的表現比我們今年早些時候的預測要好，所以我們對此感到滿意，而我們認為這對假期來說是個好兆頭。

In terms of retailer feedback, I'd say a couple of things. They are being pretty selective right now, but, frankly, that's understandable given the amount of product that’s being offered out there. Their selectiveness is most discernible on the GameCube and Game Boy Advance platforms where they appear to have been over-inventoried. Titles aimed at very young kids seem to be performing below expectation. On the other hand, we're finding the retailers very supportive of the big propositions. You know, Spider-Man was a good example of that earlier in the year. Right now, for us, it's Tony Hawk, and we see them doing the same for our competitors, where the propositions are truly, you know, big. And that's good to see, that's what we expected to see, and that's how we planned our program for this year.

就零售商的回饋而言，我想說幾件事。他們現在非常有選擇性，但是，坦率地說，考慮到那裡提供的產品數量，這是可以理解的。他們的選擇性在 GameCube 和 Game Boy Advance 平台上最為明顯，這些平台上的庫存似乎太多。針對幼兒的遊戲似乎表現低於預期。另一方面，我們發現零售商非常支持這些重大提案。你知道，今年早些時候的《蜘蛛人》就是一個很好的例子。現在，對我們來說，是托尼霍克，我們看到他們為我們的競爭對手做同樣的事情，他們的主張確實很大。很高興看到這一點，這就是我們期望看到的，這就是我們計劃今年計劃的方式。

So all in all, aside from some growing pains that are, frankly, getting a lot of discussion and focus, the market is very strong, and barring any major macroeconomic issues, we expect an excellent holiday season.

因此，總而言之，除了坦率地說，受到大量討論和關注的一些成長的煩惱之外，市場非常強勁，除非出現任何重大宏觀經濟問題，否則我們預計假期季節將會非常好。

[Mike Wallace]. Okay, thanks. And just another question. If you look at Xbox since they did the Sega Bundle and Nintendo did a Mario Bundle, are you seeing, you know, any improvement in those platforms? And as we look at next year, what sort of things do you think Microsoft and Nintendo need to do to improve Xbox, GameCube, and GBA? Is it all software related, or are there any other types of things they can do?

[麥克華萊士]。好的謝謝。還有一個問題。如果你看看 Xbox 自從他們製作了世嘉捆綁包和任天堂製作了馬裡奧捆綁包以來，你是否看到這些平台有任何改進？展望明年，您認為微軟和任天堂需要做哪些事情來改進 Xbox、GameCube 和 GBA？都是與軟體相關的嗎？或者他們還可以做其他類型的事情嗎？

You know, anecdotally, we're hearing some good things about the Xbox, in particular, and its movement having picked up recently. That's encouraging. And as I pointed out overall, the hardware market was pretty strong in September, strongest month in a while. So, you know, we're encouraged by that. Next year, we did mention that we're expecting a price cut somewhere before the second half of the year. That will be, going back in the history of the industry, a major catalyst for additional growth, and that should include the Xbox and the GameCube. Beyond that, it's definitely all about software and having great gains, and that's what they need to focus on.

你知道，有趣的是，我們聽到了一些關於 Xbox 的好消息，特別是它的發展最近有所回升。這令人鼓舞。正如我總體指出的，九月的硬體市場相當強勁，是一段時間以來最強勁的月份。所以，你知道，我們對此感到鼓舞。明年，我們確實提到我們預計在下半年之前會降價。回顧該行業的歷史，這將是進一步成長的主要催化劑，其中應該包括 Xbox 和 GameCube。除此之外，絕對是軟體方面的，有很大的收穫，這才是他們需要關注的。

Okay, thank you.

好的謝謝。

Thank you.

謝謝。

Thank you, sir. Our next question does come from [Jatew Patew's] line. Please proceed.

謝謝你，先生。我們的下一個問題確實來自 [Jatew Patew's] 線路。請繼續。

Hey, guys. A couple of questions. First of all, you know, the 2003 growth, you're targeting 13- to 17-percent growth for the industry. And if you look back historically, Activision has always grown quite well and ahead of industry growth rates. I guess what – you know, look – just looking at previous guidance out there, we're just assuming about 10- to 12-percent growth or thereabouts. I mean should we be thinking about anything as it relates to Activision's growth versus industry growth? Or is it just, you know, being conservative at this point?

大家好。有幾個問題。首先，您知道，2003 年的成長目標是該行業 13% 到 17% 的成長。如果你回顧歷史，動視暴雪一直成長得相當好，並且領先於產業成長率。我猜想——你知道，看看——只要看看之前的指導，我們就假設成長率約為 10% 到 12% 左右。我的意思是，我們是否應該考慮與動視暴雪的成長與產業成長相關的任何事情？或者只是，你知道，在這一點上保持保守？

Secondly, it seems like Spider-Man, which I did expect to be down to $40 at retail, you know, it seems like it's the right move given that it hits really mass market. I guess can you talk about the response as it relates to demand given this pricing move at $40 at retail?

其次，它看起來像《蜘蛛人》，我確實預計零售價會降至 40 美元，你知道，考慮到它真正進入了大眾市場，這似乎是正確的舉動。我想你能談談考慮到零售價為 40 美元的情況下與需求相關的反應嗎？

And then, finally, Lemony Snicket[s] – can you give us a sense of who you compete against for the IP? And I guess more specifics on what platforms do you plan to address with this title?

最後，Lemony Snicket[s] – 您能否讓我們了解您在與誰競爭該 IP？我想您計劃用這個標題來解決哪些平台的更多細節？

Okay. Let's talk about the growth rates first [indiscernible]. Of course, we have a good track record, as you pointed out in that area. We're not trying to signal anything here. We gave additional preliminary guidance for fiscal '04 on our last call. That was based on us doing our preliminary planning for that fiscal year.

好的。讓我們先談談成長率[音訊不清楚]。當然，正如您在該領域所指出的那樣，我們擁有良好的記錄。我們並不是想在這裡發出任何訊號。我們在上次電話會議中為 04 財年提供了額外的初步指導。這是基於我們對該財政年度進行的初步規劃。

As we've done in the past, we now are moving into the full-up planning mode for fiscal '04, and that won't be completed until early January. So I won't have an operating model that's really fully updated until that point in time, and in the January call, we plan to update you on our F '04 guidance. In the meantime, we did feel it was appropriate to comment on our market expectations given that there had been so much discussion out there.

正如我們過去所做的那樣，我們現在正在進入 04 財年的全面規劃模式，這項工作要到 1 月初才能完成。因此，在那之前我不會有一個真正完全更新的營運模型，在 1 月的電話會議中，我們計劃向您更新我們的 F '04 指南。同時，鑑於已經進行瞭如此多的討論，我們確實認為對我們的市場預期發表評論是適當的。

Secondly, on Spider-Man, we have a lot of experience with the property at various price points and know from that experience that it – it moves beautifully down the pricing ladder and picks up a lot of new business as it goes down the pricing ladder. It was six months after we launched the price that we took it to $39 to really make, you know, the program work synergistically with the DVD release, which, as I mentioned, is happening this week. So we're seeing very good initial response to that price point as expected.

其次，在《蜘蛛人》中，我們對不同價位的房產擁有豐富的經驗，並且從這些經驗中知道，它在定價階梯上的表現非常出色，並在定價階梯下降時獲得了許多新業務。六個月後，我們將價格提高到 39 美元，以真正使該節目與 DVD 發行協同工作，正如我所提到的，DVD 發行將在本週進行。因此，正如預期的那樣，我們看到對該價格點的初步反應非常好。

And about Lemony Snicket, we intend to present it the way we did with Spider-Man, on all major platforms, and we're looking forward to that. I won't tell you who we competed against. We customarily don't engage in that part of it, but we're very excited about the property and think it can end up being a major title for us.

至於萊蒙·斯尼基特，我們打算像《蜘蛛人》一樣在所有主要平台上展示它，我們對此充滿期待。我不會告訴你我們的對手是誰。我們通常不會參與其中的這一部分，但我們對這個財產感到非常興奮，並認為它最終會成為我們的一個主要頭銜。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

And our next question will come from [Jeff Falansky's] line. Please proceed.

我們的下一個問題將來自[傑夫法蘭斯基]。請繼續。

Thanks. Could you guys just talk about your thoughts on the Extreme Sports strategy going forward based on a little bit of a disappointing result from Mat Hoffman and Kelly Slater? What's the core franchise potential there going forward? And I have one or two more questions.

謝謝。你們能否根據馬特·霍夫曼和凱利·斯萊特令人失望的結果談談你們對未來極限運動策略的看法？未來的核心特許經營潛力是什麼？我還有一兩個問題。

Yeah, you know, we – in the second quarter, where I talked about this during [indiscernible] prepared remarks, had a number of extra [indiscernible] going on under the, you know, action sports umbrella; specifically, Street Hoops, Kelly Slater and Mat Hoffman. Street Hoops being positioned as a standalone proposition, it didn't even have the [02] label on there although it came out of the[02] studio and was marketed by the [02] team. And it was an excellent learning experience for us. Sure, we would've wanted all of them to be massive hits, but what we learned was that the standalone approach that we took for Street Hoops was very effective, more effective than the more Tony Hawk-like presentation of the other two properties. So important learning for us. As we said, we're committed to the segment. We think that it has a lot of potential. It has grown in a relatively short period of time from being virtually non-existent, $20 million in revenues, to now headed for over a half a billion dollars, and that's just in North America. So we're committed, we're learning, and that's what it's all about.

是的，你知道，我們 - 在第二季度，我在[音頻不清晰]準備好的發言中談到了這一點，在你知道的極限運動保護傘下進行了許多額外的[音頻不清晰]；特別是 Street Hoops、Kelly Slater 和 Mat Hoffman。 Street Hoops 被定位為一個獨立的產品，儘管它來自 [02] 工作室並由 [02] 團隊行銷，但它甚至沒有 [02] 標籤。這對我們來說是一次極佳的學習經驗。當然，我們希望所有這些都能夠大受歡迎，但我們了解到，我們為《街頭籃球》採取的獨立方法非常有效，比其他兩個產品的托尼霍克式演示更有效。對我們來說非常重要的學習。正如我們所說，我們致力於該領域。我們認為它有很大的潛力。它在相對較短的時間內從幾乎不存在的收入 2000 萬美元增長到現在超過 5 億美元，而且這只是在北美。所以我們致力於，我們正在學習，這就是一切的意義。

Okay, thanks. Could you talk about the percentage of revenues from Spider-Man or from – in catalog, in general, for the quarter?

好的謝謝。您能否談談本季《蜘蛛人》或《目錄》的整體收入百分比？

Catalog was pretty good because we went into the quarter with the Spider-Man momentum and also Tony Hawk performed well, as well did Soldier of Fortune. So catalog was about a third of the business in the second quarter. For the year and more typical, it's about 25 to 26 percent.

《目錄》相當不錯，因為我們帶著《蜘蛛人》的勢頭進入了本季度，托尼霍克也表現出色，《財富戰士》也表現出色。因此，目錄產品約佔第二季業務的三分之一。就今年而言，更典型的是，這一比例約為 25% 至 26%。

And one more question. On Minority Report, I haven't heard much about that title. Can you talk about previews or what state the game is in or what kind of expectations you may have for it?

還有一個問題。在《少數派報告》中，我沒怎麼聽過這個標題。你能談談預覽或遊戲目前的狀態或你對它有什麼樣的期望嗎？

It's an action game. It's, you know, based on the, of course, the movie that was released earlier this year. It did pretty well at the box office but really presented us with a great sort of concept for a game. And the guys at Treyarch, also hit the spot with the Spider-Man movie game, took to this very well and put together what I think is a great game. It's, you know, obviously mass market-oriented in its approach, and, you know, the DVD release is in early December and should provide good marketing energy around the whole property, and, of course, we have our own program to key off that. So having said that, we're pretty tempered in our expectations. We don't have a lot of experience in properties, so we're calling it pretty low and leaving room for up side.

這是一款動作遊戲。當然，這是根據今年早些時候上映的電影改編的。它的票房表現相當不錯，但確實向我們展示了一個很棒的遊戲概念。 Treyarch 的團隊也因《蜘蛛人》電影遊戲而大獲成功，他們非常喜歡這款遊戲，並製作了我認為很棒的遊戲。你知道，它的方法顯然是以大眾市場為導向的，而且你知道，DVD 將於 12 月初發行，應該為整個財產提供良好的營銷能量，當然，我們有自己的計劃來結束那。話雖如此，我們的期望還是相當溫和的。我們在房地產方面沒有太多經驗，因此我們認為它相當低，並為上漲留下了空間。

Okay, great. Thanks a lot.

好的，太好了。多謝。

And our next question comes from [Shawn Newen's] line. Please proceed.

我們的下一個問題來自 [肖恩·紐恩] 的台詞。請繼續。

Thank you. It's [Shawn Newen] at Soundview. Just a quick – two quick questions. First, on Tony Hawk 4, you indicated the launch was solid. If you look at it retail, there was a little – some discrepancies. I know you were going to launch the title later on in October, and you bumped it up a bit. Do you think the marketing dollars – or should I ask, were the marketing dollars tied in to later in the month? And do you think that the sales curve could change as we move into a period where you get more marketing behind it? And I have one follow-up.

謝謝。我是 Soundview 的 [Shawn Newen]。簡單說一下——兩個簡單的問題。首先，在《托尼霍克 4》中，您表示發射進展順利。如果你看看零售版，你會發現有些差異。我知道你們打算在 10 月晚些時候推出這個遊戲，並且你們把它提高了一點。你認為行銷費用——或者我應該問，行銷費用是否與本月稍後掛鉤？您認為隨著我們進入一個需要更多行銷支援的時期，銷售曲線可能會改變嗎？我還有一個後續行動。

Yeah, the – you know, just a couple of thoughts on that. The title shipped last week Wednesday had limited distribution by Saturday. The sell-through data that we get is for the week ending Saturday, so it doesn't include the full weekend. Also, keep in mind that we, as you noted, pulled the launch forward by six days, which meant there was zero retailer activity announcing the in-store arrival of the title, zero. That activity all ran just a couple of days ago, announcing that the title would show up this week, i.e., Thursday. So what we have is really just a few days of sell-through data with spotty distribution and limited awareness of the titles in the stores. So, yes, we totally expect that as the marketing kick in later this week, the advertising begins next Monday, we're going to see that reflected in the results. But having said that, we're happy with the first few days in terms of what we've seen here.

是的，你知道，對此我有幾點想法。上週三出貨的遊戲到週六為止的發行量有限。我們獲得的銷售數據是截至週六的一周，因此不包括整個週末。另外，請記住，正如您所指出的，我們將發佈時間提前了六天，這意味著宣布該商品到店的零售商活動為零，零。該活動都是在幾天前進行的，宣布標題將在本週（即星期四）出現。因此，我們所擁有的實際上只是幾天的銷售數據，分佈參差不齊，而且對商店中的商品認知度有限。所以，是的，我們完全希望隨著行銷在本週晚些時候開始，廣告在下週一開始，我們將看到這一點反映在結果中。但話雖如此，就我們在這裡所看到的情況而言，我們對最初幾天感到滿意。

Okay, and just a follow-up. You gave your industry growth outlook for '03, certainly near the 20-percent range on the console side. Can you just give us a sense what's baked into that assumption in terms of software pricing? I know you guys were planning on – you've talked pretty consistently all year that software prices should be, you know, at the $39 level at retail next year. Are you assuming 39 for all console titles for the full year, i.e., is there any up side to that number if prices hold – if new content holds are 49 in the beginning of the year? Thanks.

好的，只是後續行動。您給了 03 年的產業成長前景，肯定接近主機端 20% 的範圍。您能否讓我們了解軟體定價方面的假設？我知道你們一直在計劃——你們一整年都在不斷地談論明年軟體的零售價格應該是 39 美元。您是否假設全年所有主機遊戲的銷售量為 39，也就是說，如果價格保持不變（如果年初的新內容保持為 49），這個數字是否還有上升空間？謝謝。

Yeah, we have – there are a couple of overlapping issues here. One is what we plan in terms of our plan for next year. We're assuming 39.99 but, you know, we're going to try and hold our titles at 49.99 as we release them until the market dictates otherwise. But for sort of the planning purposes, we feel it's prudent to assume 39.99, thus, leaving room for up side.

是的，我們有——這裡有幾個重疊的問題。一是我們明年的計劃。我們假設 39.99，但是，你知道，我們會在發布遊戲時嘗試將其保持在 49.99，直到市場另有指示。但出於某種規劃目的，我們認為假設 39.99 是謹慎的做法，因此為上漲留出了空間。

In terms of market forecast, we are taking in the fact that, you know, in one later year in the cycle there will be more product available for the next-gen platforms at lower price points. There will be, you know, green label programs, and so forth. So that would drive the average price point down some, and we baked that into our forecast for next year.

在市場預測方面，我們考慮到這樣一個事實：您知道，在周期的後一年，將以更低的價格為下一代平台提供更多產品。你知道，將會有綠色標籤計劃等等。因此，這將導致平均價格下降一些，我們將其納入明年的預測中。

Great. Thank you very much.

偉大的。非常感謝。

Thank you.

謝謝。

Thank you, sir. And our next question does come from [Chris Dibiossi's] line. Please proceed.

謝謝你，先生。我們的下一個問題確實來自[Chris Dibiossi]。請繼續。

Thanks. I'm looking at my notes from July, and I have in there that you said that you had [indiscernible]?

謝謝。我正在看我七月的筆記，裡面有你說的[音頻不清晰]？

Paul, we lost – we lost Chris here.

保羅，我們輸了——我們在這裡失去了克里斯。

Yes, sir, Mr. [Dibiossi], please proceed.

是的，先生，[迪比歐西]先生，請繼續。

Can you hear me?

你聽得到我嗎？

Yeah, we lost you there, so we need to start it all over again.

是的，我們在那裡失去了你，所以我們需要重新開始。

Sure. I'm looking at my notes from July, and I have your forecast for installed base at the end of calendar '03 to be 60 million. I think you said 55 million today. So I was just wondering, firstly, is that the case? Are my numbers right from July?

當然。我正在查看我 7 月的筆記，我預計 03 年日曆末的安裝基數將達到 6000 萬。我想你今天說的是 5500 萬。所以我首先想知道，是這樣嗎？我的數據是七月的嗎？

We said over.

我們說完了。

Okay. And then if I also do the math, you said 15 million at the end of calendar '01 and then 35 million at end of '02, and then 55 million at end of '03. That's – that's flat growth in calendar '03. Is that correct as well?

好的。然後，如果我也算一下，你說 01 年底為 1500 萬，02 年底為 3500 萬，03 年底為 5500 萬。那就是——03 年的平穩成長。這也正確嗎？

You're talking the installed base, Chris?

你說的是安裝基礎，克里斯？

Yup. Yeah, no, I'm talking installed base.

是的。是的，不，我說的是安裝基礎。

Yeah, we – we said over 55 million. Again, that's a little hard to call at this point where it will be 60, but that's definitely within the range of what we had in our numbers.

是的，我們——我們說超過 5500 萬。再次強調，目前這個數字有點難以預測，因為它將是 60，但這絕對在我們的數字範圍內。

Okay. And then –

好的。進而 -

We try to plan our, you know, our future a little conservatively, leaving room for up side. That model has served us well in the past.

我們嘗試稍微保守地規劃我們的未來，為未來留出空間。這種模式過去對我們很有幫助。

Yup. No, I was just clarifying the numbers. And then you said if there was any change to the macro environment – I saw the consumer confidence numbers today, and I think they were at a nine-year low. So I was wondering how much of that is factored into the forecast for calendar '03?

是的。不，我只是在澄清數字。然後你說宏觀環境是否有任何變化——我今天看到了消費者信心數據，我認為它們處於九年來的最低點。所以我想知道 03 年曆的預測中考慮了多少？

You know, if you go back in the history of the videogame industry, those kinds of things have not been major variables in terms of, you know, making for a good or bad holiday season. The kind of macroeconomic event we're talking about here would be, you know, an order of magnitude bigger than confidence numbers coming in low. And, you know, that could be a massive, you know, economic issue or, you know, maybe something on the warfront that goes out of control. And those are the things that we obviously, you know, can't predict at this point.

你知道，如果你回顧電玩產業的歷史，這些事情並不是影響假日季節好壞的主要變數。你知道，我們在這裡討論的宏觀經濟事件的數量級將比低迷的信心數字大一個數量級。而且，你知道，這可能是個巨大的經濟問題，或者，你知道，也許是戰爭前線出現失控的問題。你知道，這些顯然是我們目前無法預測的事情。

Great. Thanks.

偉大的。謝謝。

Okay, sir, our next question will come from [Tony Dicassis'] line. Please proceed.

好的，先生，我們的下一個問題將來自[托尼·迪卡西斯]線路。請繼續。

Good afternoon, guys. A couple questions. What will that Spider-Man and Tony Hawk together be as a percentage of total sales for this fiscal year or as a percentage of the publishing business? And then I have a follow-up or two.

下午好，夥計們。有幾個問題。 《蜘蛛人》和《東尼霍克》合計佔本財年總銷售額或出版業務的百分比是多少？然後我會進行一兩個後續行動。

Tony, the combination should be between 35 and 40 percent. That's of consolidated.

東尼，這個組合應該在 35% 到 40% 之間。那是綜合的。

That's total sales including the distribution business?

這是包括分銷業務在內的總銷售額嗎？

Yes, sir.

是的先生。

Okay. And what is your expectation of Tony Hawk being down this year, for fiscal '03 relative to fiscal '02?

好的。您對托尼霍克今年 03 財年相對於 02 財年的業績下滑有何預期？

Uh—

呃——

Is that going to be down?

難道就這樣下去嗎？

Well, let's see. I would say – let me answer it this way while I grab the note here. The – for the year, Tony Hawk, this year, looking at about, let's see, 20 percent, yeah.

好吧，走著瞧。我會說——讓我這樣回答，同時我抓住這裡的紙條。 - 今年，東尼霍克，今年，讓我們看看，20%，是的。

So down --?

很低落 - ？

And last year it was about 30 percent.

去年這個數字約為 30%。

Oh, I see. Twenty-percent of sales this year.

我懂了。今年銷售額的百分之二十。

Yeah.

是的。

Okay. And then my last question just kind of goes back to the accounts receivable reserve because it seems like everyone in the sector is just so wildly over reserved these days, and just – I'm still at a loss in trying to figure out why reserves are so high. I mean is the market environment that uncertain? Are we shipping too much product? Do we have lack of confidence in pricing? Are the games not good? Are the receivables not collectible? Just seems like 47 percent of gross receivables is kind of a joke. Why is that number so high?

好的。然後我的最後一個問題又回到了應收帳款準備金，因為現在這個行業的每個人似乎都過度準備金了，而且——我仍然不知所措，試圖弄清楚為什麼準備金是這樣的。好高。我的意思是市場環境有那麼不確定嗎？我們運送的產品是否過多？我們對定價缺乏信心嗎？遊戲不好嗎？應收帳款不能收回嗎？似乎 47% 的應收帳款總額只是一個笑話。為什麼這個數字這麼高？

You know, that's – that's how people evaluate, you know, the number. It really relates indirectly only to receivables. What it relates to, really, is the product that you have out in the marketplace, the confidence that you have, and that product selling through, and your assumptions about pricing and all those things. So that's really how that number's built up, and then at the end of it, you can compare it to your receivable balance as a way of benchmarking that number over time. What we've been pointing out for some time now is that if you do that benchmarking, that looks higher than what you've seen historically because in our reserve calculation, we're building in the scenario that prices are going to come down from 49.99 to 39.99 on the console side of the business. And that's a meaningful, you know, number when that gets built into the reserve calculation. And, also, internationally, we've pointed out we're – we're seeing a bit of a shift on the – in the business on the distribution side of the company where we're doing more business with large national accounts that have a higher reserve requirement associated with them. So those are the two variables that we specifically point to here.

你知道，這就是人們評估這個數字的方式。它實際上僅與應收帳款間接相關。實際上，它涉及到的是你在市場上擁有的產品、你的信心、產品的銷售情況，以及你對定價和所有這些事情的假設。這就是這個數字的建立方式，最後，您可以將其與應收帳款餘額進行比較，作為隨著時間推移對該數字進行基準測試的一種方式。一段時間以來，我們一直在指出的是，如果你進行基準測試，它看起來會比你在歷史上看到的要高，因為在我們的儲備計算中，我們正在建立這樣的場景：價格將從業務控制台端為49.99 至39.99。當它被納入儲備計算時，這是一個有意義的數字。而且，在國際上，我們已經指出，我們正在公司的分銷方面的業務上看到一些轉變，我們正在與大型國民帳戶開展更多業務，這些客戶與它們相關的更高的準備金要求。這就是我們在這裡特別指出的兩個變數。

And, also, Tony, as we pointed out in the call, we're seeing more rapid declines in pricing for under-performing titles below our price plan.

而且，托尼，正如我們在電話會議中指出的那樣，我們看到表現不佳的遊戲的定價下降得更快，低於我們的價格計劃。

So we're providing for that.

所以我們正在為此提供服務。

Okay, thanks, guys.

好的，謝謝大家。

Thank you.

謝謝。

Sir, our next question will come from [Stuart Halprin's] line. Please proceed.

先生，我們的下一個問題將來自 [Stuart Halprin] 的線路。請繼續。

Good afternoon. First, on the product side. Do you have any visibility on the Wolfenstein [ES2] product? And then, secondly, just a little bit further on this whole debate about growth. If you compare this cycle versus the previous, it looks – it seems like 2003 is the equivalent of 1998 in the last cycle. The overall software industry growth in '98 was about 25 percent or so over '97. Can you talk a little bit about what might be different now versus the previous cycle? I mean is it just the law of large numbers? Or is there something else going on that suggests maybe we're not going to see quite as much growth this time around?

午安.首先，在產品方面。您對德軍總部 [ES2] 產品有了解嗎？其次，再進一步討論有關成長的整個爭論。如果你將這個週期與上一個週期進行比較，看起來——2003 年似乎相當於上一個週期的 1998 年。 98 年整個軟體產業的成長率比 97 年大約成長了 25% 左右。您能談談現在與上一個週期相比可能有什麼不同嗎？我的意思是這只是大數定律嗎？或者是否還有其他事情表明這一次我們可能不會看到那麼大的成長？

Sure, first, visibility. Wolfenstein for the console, both PlayStation 2 and the Xbox, are in development. They are targeted for next year. And as per the standard operating procedure involving hit titles, we do not get more specific on the timing of the titles until we agree that it's the right time to do so, and that's not today. So that's all I can say about that.

當然，首先是可見性。適用於 PlayStation 2 和 Xbox 的《德軍總部》正在開發中。他們的目標是明年。根據涉及熱門遊戲的標準操作程序，在我們同意現在是這樣做的正確時機之前，我們不會更具體地確定遊戲的發佈時間，而那不是今天。這就是我能說的。

But is it targeted --? Is it targeted for next year? Because you didn't mention it when you were going through the '04s.

但它是有針對性的嗎——？目標是明年嗎？因為你在04年的時候沒有提到過。

I said to target for 2004, yeah.

我說過目標是 2004 年，是的。

Okay, good.

好的。

And then in terms of the comparability of, you know, next year to '98, that is pretty tricky. We do look at that, but there are, as you look at that, a lot of variables that are different. Obviously, we have our different platforms, we have later timing of the handheld. There are a lot of things that do make it tricky. It's just one of the ways we look at it, but I would encourage you to also kind of look at it on the platform-by-platform basis and kind of project out growth trends and that type of thing.

然後就明年與 98 年的可比性而言，這是相當棘手的。我們確實會關注這一點，但正如你所看到的，有很多不同的變數。顯然，我們有不同的平台，我們有較晚的手持設備時機。有很多事情確實讓它變得棘手。這只是我們看待它的方式之一，但我鼓勵您也逐一平台地看待它，並預測出成長趨勢之類的事情。

Given that the –

鑑於 –

Like when you cite 25 percent, you know, and this has been a, I think, a common source of conversation over the last few weeks, but you really need to look at apples-to-apples comparisons when you talk about growth rates. Are you talking about consoles, handhelds, PC? Are you talking about North America and Europe? We've provided what we think is our best research effort in terms of growth for next year in a lot of detail, and we're going to stick by that for our planning purposes for the time being.

就像你引用 25% 一樣，你知道，我認為這是過去幾週的常見談話來源，但當你談論成長率時，你確實需要進行同類比較。您是在談論遊戲機、手持裝置還是 PC？你說的是北美和歐洲嗎？我們已經提供了我們認為在明年增長方面最好的研究工作的詳細信息，我們將暫時堅持這一點以用於我們的規劃目的。

Okay, yeah, my 25 percent was North America overall, including handheld [indiscernible]?

好吧，是的，我的 25% 是北美地區，包括手持設備 [音訊不清晰]？

Right.

正確的。

-- on the id scale. But – okay, do you think the fact that the pricing on the hardware is somewhat higher relative to where we are in the cycle as compared to last time has held back the market in any way?

——在身份尺度上。但是 - 好吧，您認為與上次相比，硬體定價相對於我們所處的周期要高一些，這一事實是否以任何方式抑制了市場？

I don't think it has held back except in that it probably would've – if the market was growing even faster, they – if it had dropped pricing as fast as they – the first party did in the last cycle, just a, you know, quick sub-- specificity around that, we saw the drop from 299 to 199 in month 20. By month 20 in the last cycle, hardware was priced at $149. So, you're right. We're seeing higher pricing, and yet we're seeing higher installed base growth.

我不認為它已經阻止了，除非它可能會 - 如果市場增長得更快，他們 - 如果它像他們一樣快速下降定價 - 第一方在上一個週期中所做的，只是，你知道，圍繞這一點，我們看到在第20 個月從299 下降到199。到上一個週期的第20 個月，硬體價格為149 美元。所以，你是對的。我們看到了更高的定價，但我們也看到了更高的安裝基數成長。

Okay, great. Thanks.

好的，太好了。謝謝。

Thank you.

謝謝。

Okay, our next question does come from [Bob Dulane's] line. Please proceed.

好的，我們的下一個問題確實來自 [Bob Dulane's]。請繼續。

Yeah, Bob Dulane. A couple questions, guys. One, just a follow-up on the Spider-Man title. I'm seeing it advertised at 29.99. Is that just retailers trying to drive foot traffic?

是的，鮑伯·杜蘭。夥計們，有幾個問題。一，只是蜘蛛人標題的後續。我看到廣告上說29.99。這只是零售商試圖增加人流嗎？

Yes.

是的。

Okay. Secondly, just looking at the income statement for a minute, I noticed the selling and marketing are up pretty substantially, but G&A is down. Can you provide a little bit more explanation there, Ron?

好的。其次，只要看一下損益表，我就注意到銷售和行銷大幅成長，但一般行政費用卻下降了。羅恩，你能提供更多解釋嗎？

Selling and marketing is up because the – really, because of the over-performance of the published side of the company. That's where the marketing dollars were spent, and that's the part of the P&L that significantly over-performed in the second quarter.

銷售和行銷的成長是因為——實際上，是因為公司出版部門的出色表現。這就是行銷資金的用處，也是第二季損益表表現明顯超預期的部分。

And, finally, can you talk a little about the distribution business because it looks as though it was flat year over year.

最後，您能談談分銷業務嗎，因為它看起來似乎比去年同期持平。

It is, but the year-ago period was a big period for the distribution company. They actually had a very good quarter. If you go back a few more years, you'll see that easily. Last year, there was a lot of activity, including the price cut on the PlayStation 2 in the U.K., some new activity. They picked up a Game Boy product that was launching and that did very well for them. Also, our relationship with Wal-Mart really took off in the U.K., and that added extra business. So we were lapping a tough quarter year-over-year, and that explains that.

確實如此，但去年對分銷公司來說是一個重要時期。他們實際上度過了一個非常好的季度。如果你再回到幾年前，你會很容易看到這一點。去年，有許多活動，包括英國 PlayStation 2 的降價，以及一些新的活動。他們選擇了一款即將推出的 Game Boy 產品，對他們來說效果非常好。此外，我們與沃爾瑪的關係在英國真正起飛，這增加了額外的業務。因此，我們經歷了一個同比艱難的季度，這解釋了這一點。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you very much, sir. And our last question for the day will come from [Edward Williams'] line. Please proceed.

先生非常感謝您。我們今天的最後一個問題將來自[愛德華·威廉斯]。請繼續。

A couple of questions for you. What are you thinking about with your 115 games that you have in development with regards to which consoles you're going to support? Has this changed at all in the last – last few months given the sell-through of the Xbox and GameCube in North America and Europe?

有幾個問題想問你。對於您正在開發的 115 款遊戲，您對支援哪些遊戲機有什麼看法？考慮到 Xbox 和 GameCube 在北美和歐洲的銷售情況，過去幾個月是否發生了變化？

You know, here's how we do that, Ed. We really use the PlayStation 2 platform as the elite platform in developing games, you know, for the console. And then we evaluate each game as to whether it has potential to go on to the Xbox and the GameCube. That's our, you know, our generally speaking, our MO on the console side. So we're – you know, on a project-by-project basis looking at that. Still, both the GameCube and the Xbox have the right properties of very attractive expansion opportunities for those projects. The economics are plenty attractive, too, for us. One would be multi-platform company, and as I said, for the right properties, that is a very profitable proposition. So we're continuing to do that.

你知道，我們就是這樣做的，艾德。我們確實將 PlayStation 2 平台用作開發遊戲機的精英平台。然後我們評估每款遊戲是否有潛力登陸 Xbox 和 GameCube。一般來說，這就是我們在控制台方面的 MO。所以我們正在逐一研究這個問題。儘管如此，GameCube 和 Xbox 都具有對這些項目非常有吸引力的擴展機會的正確屬性。對我們來說，經濟也很有吸引力。一個是多平台公司，正如我所說，對於合適的資產，這是一個非常有利可圖的提議。所以我們將繼續這樣做。

Can you provide any color as to how the 115 break out?

您能提供有關 115 如何突破的任何顏色嗎？

Yeah, let's kind of look at a couple of things here. The – here's how I see it, and this is a little bit of a bigger number. If you add all the products that are in planning and development for the next 2-1/2 years, which is the balance of fiscal '03, fiscal '04 and fiscal '05, we have about, oh, a couple of dozen projects going out this year, about 27 actually, 7 to 75 titles launching next year, and then 75 to 80 launching in fiscal '05.

是的，讓我們來看看這裡的一些事情。這就是我的看法，這個數字有點大。如果你把未來 2-1/2 年規劃和開發的所有產品加起來，也就是 03 財年、04 財年和 05 財年的餘額，我們大約有，哦，幾十個項目今年推出的遊戲實際上大約有27 款，明年推出7 到75 款，然後05 財年推出75 到80 款。

Okay, thanks.

好的謝謝。

Thank you.

謝謝。

I just want to thank everyone for your time and your support, and we'll talk to you in January.

我只想感謝大家的時間和支持，我們將在一月份與您交談。

Thank you all.

謝謝你們。

Ladies and gentlemen, thank you for your participation. This concludes today's conference. You may all disconnect now. Thank you.

女士們、先生們，感謝您的參與。今天的會議到此結束。你們現在可以斷開連結了。謝謝。