REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Disaggregation of revenue

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.

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).

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Net revenue recognized:
Service and other	$	578,830	$	481,301	$	1,662,456	$	1,327,433
Product	282,059		448,828		870,885		1,000,996
Total net revenue	$	860,889	$	930,129	$	2,533,341	$	2,328,429

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.

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.

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Net revenue recognized:
Recurrent consumer spending	$	533,475	$	340,496	$	1,508,604	$	973,822
Full game and other	327,414		589,633		1,024,737		1,354,607
Total net revenue	$	860,889	$	930,129	$	2,533,341	$	2,328,429

Geography

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Net revenue recognized:
United States	$	528,324	$	536,841	$	1,502,397	$	1,361,981
International	332,565		393,288		1,030,944		966,448
Total net revenue	$	860,889	$	930,129	$	2,533,341	$	2,328,429

Platform

Net revenue by platform was as follows:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Net revenue recognized:
Console	$	656,079	$	679,799	$	1,909,033	$	1,766,431
PC and other	204,810		250,330		624,308		561,998
Total net revenue	$	860,889	$	930,129	$	2,533,341	$	2,328,429

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 December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Net revenue recognized:
Digital online	$	728,510	$	700,321	$	2,166,035	$	1,743,876
Physical retail and other	132,379		229,808		367,306		584,553
Total net revenue	$	860,889	$	930,129	$	2,533,341	$	2,328,429

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 December 31, 2020 and March 31, 2020 were $1,023,289 and $806,123, respectively. For the three months ended December 31, 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 December 31, 2020 and 2019, $109,713 and $193,468, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. During the nine months ended December 31, 2020 and 2019, $722,658 and $758,301, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. As of December 31, 2020, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,134,398, which includes our deferred revenue balances and amounts to be invoiced and recognized in future periods. We expect to recognize approximately $1,011,585 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 December 31, 2020 and March 31, 2020, our contract asset balances were $105,460 and $81,625, respectively, which are recorded within Prepaid expenses and other in our Condensed Consolidated Balance Sheets.