The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers (“independent artists” or “third-party developers”). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain sports organizations and other content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables.

These developer and content license commitments represent the sum of the cash payments for flat fees, minimum guaranteed payments, and service payments. The majority of these commitments are conditional upon performance by the counterparty. These payments and any related marketing and development commitments are included in the table below.


			Fiscal Years Ending March 31,
	Total		2027		2028		2029		2030		2031		Thereafter
Unrecognized commitments
Developer/licensor commitments	$	2,058	$	340	$	474	$	430	$	415	$	361	$	38
Marketing commitments	1,239		304		282		230		196		216		11
Senior Notes interest	618		32		36		36		36		36		442
Operating lease imputed interest	65		15		12		10		8		7		13
Operating leases not yet commenced	34		2		4		5		5		5		13
Other purchase obligations	376		101		121		97		39		14		4


Total unrecognized commitments	4,390		794		929		808		699		639		521

Recognized commitments
Senior Notes principal and interest	1,505		5		—		—		—		750		750
Operating leases	369		61		59		42		29		38		140


Total recognized commitments	1,874		66		59		42		29		788		890

Total Commitments	$	6,264	$	860	$	988	$	850	$	728	$	1,427	$	1,411

The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of March 31, 2026; however, certain payment obligations may be accelerated depending on the performance of our operating results.

In addition to the amounts included in the table above, in our Consolidated Balance Sheets as of March 31, 2026, we had a net liability for unrecognized tax benefits and related interest totaling $654 million. While it is reasonably possible that a material reduction of unrecognized tax benefits may occur within the next 12 months, the actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations.

We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Consolidated Financial Statements.