Take-Two Interactive Software (TTWO) 10-Q 5 Aug 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document and Entity Information
Entity Registrant Name	TAKE TWO INTERACTIVE SOFTWARE INC
Entity Central Index Key	946,581
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,015,312
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Current assets:
Cash and cash equivalents	$ 796,328	$ 798,742
Short-term investments	392,489	470,820
Restricted cash	318,504	261,169
Accounts receivable, net of allowances of $67,744 and $45,552 at June 30, 2016 and March 31, 2016, respectively	141,150	168,527
Inventory	12,734	15,888
Software development costs and licenses	167,218	178,387
Deferred cost of goods sold	92,515	98,474
Prepaid expenses and other	56,734	53,269
Total current assets	1,977,672	2,045,276
Fixed assets, net	72,414	77,127
Software development costs and licenses, net of current portion	247,272	214,831
Deferred cost of goods sold, net of current portion	5,301	17,915
Goodwill	215,622	217,080
Other intangibles, net	4,609	4,609
Other assets	15,837	13,439
Total assets	2,538,727	2,590,277
Current liabilities:
Accounts payable	37,781	30,448
Accrued expenses and other current liabilities	619,435	607,479
Deferred revenue	604,411	582,484
Total current liabilities	1,261,627	1,220,411
Long-term debt	504,385	497,935
Non-current deferred revenue	153,912	216,319
Other long-term liabilities	85,263	74,227
Total liabilities	2,005,187	2,008,892
Commitments and Contingencies (See Note 13)
Stockholders' equity:
Preferred stock, $.01 par value, 5,000 shares authorized
Common stock, $.01 par value, 200,000 shares authorized; 104,599 and 103,765 shares issued and 87,407 and 86,573 outstanding at June 30, 2016 and March 31, 2016, respectively	1,046	1,038
Additional paid-in capital	1,082,765	1,088,628
Treasury stock, at cost; 17,192 common shares at June 30, 2016 and March 31, 2016	(303,388)	(303,388)
Accumulated deficit	(205,564)	(166,997)
Accumulated other comprehensive loss	(41,319)	(37,896)
Total stockholders' equity	533,540	581,385
Total liabilities and stockholders' equity	$ 2,538,727	$ 2,590,277

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances (in dollars)	$ 67,744	$ 45,552
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000	5,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	104,599	103,765
Common stock, shares outstanding	87,407	86,573
Treasury stock, shares	17,192	17,192

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenue	$ 311,552	$ 275,297
Cost of goods sold	191,380	202,615
Gross profit	120,172	72,682
Selling and marketing	71,134	45,567
General and administrative	46,743	49,035
Research and development	33,900	34,142
Depreciation and amortization	7,378	6,575
Total operating expenses	159,155	135,319
Loss from operations	(38,983)	(62,637)
Interest and other, net	(4,506)	(7,534)
Gain on long-term investments, net	1,350
Loss before income taxes	(42,139)	(70,171)
Benefit from income taxes	(3,572)	(3,148)
Net loss	$ (38,567)	$ (67,023)
Loss per share:
Basic and diluted loss per share (in dollars per share)	$ (0.46)	$ (0.81)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (38,567)	$ (67,023)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(3,633)	9,102
Unrealized gain (loss), net on available-for-sale securities, net of taxes	206	(41)
Reclassification to earnings for realized losses, net on available for sale securities	4
Change in fair value of available-for-sale securities	210	(41)
Other comprehensive (loss) income	(3,423)	9,061
Comprehensive loss	$ (41,990)	$ (57,962)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities:
Net loss	$ (38,567)	$ (67,023)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization and impairment of software development costs and licenses	41,034	23,590
Depreciation and amortization	7,378	6,575
Amortization and impairment of intellectual property		32
Stock-based compensation	15,100	19,086
Amortization of discount on Convertible Notes	6,098	5,727
Amortization of debt issuance costs	381	398
Other, net	(3,171)	183
Changes in assets and liabilities:
Restricted cash	(57,335)	(60,315)
Accounts receivable	28,226	87,198
Inventory	2,696	8,341
Software development costs and licenses	(62,392)	(43,131)
Prepaid expenses, other current and other non-current assets	(3,867)	(20,693)
Deferred revenue	(36,446)	91,903
Deferred cost of goods sold	17,223	1,243
Accounts payable, accrued expenses and other liabilities	36,394	52,368
Net cash (used in) provided by operating activities	(47,248)	105,482
Investing activities:
Change in bank time deposits	78,691	(187,045)
Proceeds from available-for-sale securities	29,795
Purchases of available for sale securities	(30,836)	(444)
Purchases of fixed assets	(4,230)	(18,769)
Proceeds from sale of long-term investment	1,350
Purchase of long-term investments	(1,885)
Net cash provided by (used in) investing activities	72,885	(206,258)
Financing activities:
Excess tax benefit from stock-based compensation	887	8,066
Tax payment related to net share settlements on restricted stock awards	(25,166)	(6,541)
Net cash (used in) provided by financing activities	(24,279)	1,525
Effects of foreign currency exchange rates on cash and cash equivalents	(3,772)	3,915
Net decrease in cash and cash equivalents	(2,414)	(95,336)
Cash and cash equivalents, beginning of year	798,742	911,120
Cash and cash equivalents, end of year	$ 796,328	$ 815,784

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Take-Two Interactive Software, Inc. (the "Company," "we," "us," or similar pronouns) was incorporated in the state of Delaware in 1993. We are a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. We develop and publish products through our two wholly-owned labels Rockstar Games and 2K. Our products are designed for console systems and personal computers, including smart phones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services. Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in the opinion of management, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All inter-company accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under generally accepted accounting principles in the United States, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended March 31, 2016. Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. Recently Issued Accounting Pronouncements Accounting for Stock Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation. This new guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This update is effective for annual periods beginning after December 15, 2016 (April 1, 2017 for the Company) and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, "Leases." This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. This update is effective for annual periods, and interim periods within those years, beginning after December 15, 2018 (April 1, 2019 for the Company). This new guidance must be adopted using a modified retrospective approach whereby lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB amended ASU 2014-09 by issuing ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations included in ASU 2014-09. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to customers. In April 2016, the FASB amended ASU 2014-09 by issuing ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on licensing and identifying performance obligations. In May 2016, the FASB further amended ASU 2014-09 by issuing ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which does not change the core principles of the standard, but clarifies the guidance on assessing collectibility, presenting sales taxes, measuring noncash consideration, and certain transition matters. ASU 2014-09 and its amendments can be adopted retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB voted to defer the effective date by one year to annual and interim years beginning after December 15, 2017 (April 1, 2018 for the Company). Early adoption is permitted, but no earlier than the original effective date of annual and interim periods beginning after December 15, 2016 (April 1, 2017 for the Company). While we continue to evaluate the impact and available implementation approaches, we believe adoption of ASU 2014-09, as amended, may have a material impact on the allocation and timing of revenue recognition and associated cost of goods sold.

MANAGEMENT AGREEMENT

MANAGEMENT AGREEMENT	3 Months Ended
	Jun. 30, 2016
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT	2. MANAGEMENT AGREEMENT In May 2011, we entered into an amended management services agreement, (the "2011 Management Agreement") with ZelnickMedia Corporation ("ZelnickMedia") pursuant to which ZelnickMedia provided us with certain management, consulting and executive level services. In March 2014, we entered into a new management agreement, (the "2014 Management Agreement"), with ZelnickMedia pursuant to which ZelnickMedia continues to provide financial and management consulting services to the Company through March 31, 2019. The 2014 Management Agreement became effective April 1, 2014 and supersedes and replaces the 2011 Management Agreement, except as otherwise contemplated by the 2014 Management Agreement. As part of the 2014 Management Agreement, Strauss Zelnick, the President of ZelnickMedia, continues to serve as Executive Chairman and Chief Executive Officer and Karl Slatoff, a partner of ZelnickMedia, continues to serve as President of the Company. The 2014 Management Agreement provides for an annual management fee of $2,970 over the term of the agreement and a maximum annual bonus opportunity of $4,752 over the term of the agreement, based on the Company achieving certain performance thresholds. In consideration for ZelnickMedia's services, we recorded consulting expense (a component of general and administrative expenses) of $1,337 during each of the three months ended June 30, 2016 and 2015. During the three months ended June 30, 2016 and 2015, we recorded $3,889 and $7,323, respectively, of stock-based compensation expense for non-employee restricted stock units granted to ZelnickMedia, which is included in general and administrative expenses. In connection with the 2014 Management Agreement, we granted restricted stock units as follows: Three Months Ended June 30, 2016 2015 Time-based Market-based(1) Performance-based(1) New IP Major IP ​ ​ ​ ​ ​ ​ ​ ​ Total- Performance-based ​ ​ ​ ​ ​ ​ ​ ​ Total Restricted Stock Units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the maximum number of shares eligible to vest. Time-based restricted stock units granted in 2016 will vest on April 1, 2018 and those granted in 2015 will vest on April 1, 2017, in each case provided that the 2014 Management Agreement has not been terminated prior to such vesting date. Market-based restricted stock units granted in 2016 are eligible to vest on April 1, 2018 and those granted in 2015 are eligible to vest on April 1, 2017, in each case provided that the 2014 Management Agreement has not been terminated prior to such vesting date. Market-based restricted stock units are eligible to vest based on the Company's Total Shareholder Return (as defined in the relevant grant agreement) relative to the Total Shareholder Return (as defined in the relevant grant agreement) of the companies that constitute the NASDAQ Composite Index as of the grant date measured over a two-year period. To earn the target number of market-based restricted stock units (which represents 50% of the number of the market-based restricted stock units set forth in the table above), the Company must perform at the 50th percentile, with the maximum number of market-based restricted stock units earned if the Company performs at the 75th percentile. Each reporting period, we re-measure the fair value of the unvested shares of market-based restricted stock units granted to ZelnickMedia. Performance-based restricted stock units granted in 2016 are eligible to vest on April 1, 2018 and those granted in 2015 are eligible to vest on April 1, 2017, in each case provided that the 2014 Management Agreement has not been terminated prior to such vesting date. Performance-based restricted stock units, of which 50% are tied to "New IP" and 50% to "Major IP" (as defined in the relevant grant agreement), are eligible to vest based on the Company's achievement of certain performance metrics (as defined in the relevant grant agreement) of individual product releases of "New IP" or "Major IP" measured over a two-year period. The target number of performance-based restricted stock units that may be earned pursuant to these grants is equal to 50% of the grant amounts set forth in the above table (the numbers in the table represent the maximum number of performance-based restricted stock units that may be earned). Each reporting period, we assess the performance metric and upon achievement of certain thresholds record an expense for the unvested portion of the shares of performance-based restricted stock units. Certain performance metrics, based on unit sales, have been achieved as of June 30, 2016 and March 31, 2016 for the "Major IP" performance-based restricted stock units granted in 2015. The unvested portion of time-based, market-based and performance-based restricted stock units held by ZelnickMedia were 898,526 and 1,145,081 as of June 30, 2016 and March 31, 2016, respectively. In addition to the restricted stock units granted to ZelnickMedia, 591,912 restricted stock units vested and 27,578 restricted stock units were forfeited during the three months ended June 30, 2016.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Jun. 30, 2016
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value because of their short maturities. We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The table below segregates all assets that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. June 30, 2016 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ $ $ — $ — Cash and cash equivalents Bank-time deposits — — Cash and cash equivalents Corporate bonds — — Short-term investments Bank-time deposits — — Short-term investments Foreign currency forward contracts ) — ) — Accrued and other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recurring fair value measurements, net $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2016 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ $ $ — $ — Cash and cash equivalents Corporate bonds — — Short-term investments Bank-time deposits — — Short-term investments Foreign currency forward contracts ) — ) — Accrued and other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recurring fair value measurements, net $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We did not have any transfers between Level 1 and Level 2 fair value measurements during the three months ended June 30, 2016. Debt As of June 30, 2016, the estimated fair value of our 1.75% Convertible Notes due 2016 (the "1.75% Convertible Notes") and 1.00% Convertible Notes due 2018 (the "1.00% Convertible Notes" and together with the 1.75% Convertible Notes, the "Convertible Notes") was $496,500 and $516,005, respectively. The fair value was determined using Level 2 inputs, observable market data, for the Convertible Notes and its embedded option feature. See Note 9 for additional information regarding our Convertible Notes.

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	3 Months Ended
	Jun. 30, 2016
SHORT -TERM INVESTMENTS
SHORT-TERM INVESTMENTS	4. SHORT-TERM INVESTMENTS Our short-term investments consisted of the following: June 30, 2016 Gross Unrealized Cost or Amortized Cost Fair Value Gains Losses Short-term investments Bank time deposits $ $ — $ — $ Available-for-sale securities: Corporate bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2016 Gross Unrealized Cost or Amortized Cost Fair Value Gains Losses Short-term investments Bank time deposits $ $ — $ — $ Available-for-sale securities: Corporate bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gains and losses of our available-for-sale securities are reported as a component of other comprehensive income (loss), net of tax, until the security is sold, the security has matured, or we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. We evaluate our investments for impairment quarterly. We consider various factors in the review of investments with an unrealized loss, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, the severity of the impairment, the reason for the decline in value and our intent to sell and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. Based on our review, we did not consider these investments to be other-than-temporarily impaired as of June 30, 2016 or March 31, 2016. The following table summarizes the contracted maturities of our short-term investments at June 30, 2016: June 30, 2016 Amortized Cost Fair Value Short-term investments Due in 1 year or less $ $ Due in 1 - 2 years ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	3 Months Ended
	Jun. 30, 2016
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Our risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not enter into derivative financial contracts for speculative or trading purposes. We classify cash flows from derivative transactions as cash flows from operating activities in our Condensed Consolidated Statements of Cash Flows. The following table shows the gross notional amounts of foreign currency forward contracts: June 30, 2016 March 31, 2016 Forward contracts to sell foreign currencies $ $ Forward contracts to purchase foreign currencies For the three months ended June 30, 2016 and 2015, we recorded a gain of $798 and a loss of $662, respectively, related to foreign currency forward contracts in interest and other, net in our Condensed Consolidated Statements of Operations. Our derivative contracts are foreign currency exchange forward contracts that are not designated as hedging instruments under hedge accounting and are used to reduce the impact of foreign currency on certain balance sheet exposures and certain revenue and expense. These instruments are generally short term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates.

INVENTORY

INVENTORY	3 Months Ended
	Jun. 30, 2016
INVENTORY
INVENTORY	6. INVENTORY Inventory balances by category are as follows: June 30, 2016 March 31, 2016 Finished products $ $ Parts and supplies ​ ​ ​ ​ ​ ​ ​ ​ Inventory $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated product returns included in inventory at June 30, 2016 and March 31, 2016 were $832 and $527, respectively.

SOFTWARE DEVELOPMENT COSTS AND

SOFTWARE DEVELOPMENT COSTS AND LICENSES	3 Months Ended
	Jun. 30, 2016
SOFTWARE DEVELOPMENT COSTS AND LICENSES
SOFTWARE DEVELOPMENT COSTS AND LICENSES	7. SOFTWARE DEVELOPMENT COSTS AND LICENSES Details of our capitalized software development costs and licenses are as follows: June 30, 2016 March 31, 2016 Current Non-current Current Non-current Software development costs, internally developed $ $ $ $ Software development costs, externally developed Licenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software development costs and licenses $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software development costs and licenses as of June 30, 2016 and March 31, 2016 included $369,273 and $343,450, respectively, related to titles that have not been released. During the three months ended June 30, 2016 and 2015 we recorded $9,068 and $1,710, respectively of software development impairment charges (a component of cost of goods sold).

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Jun. 30, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: June 30, 2016 March 31, 2016 Software development royalties $ $ Business reorganization Compensation and benefits Licenses Marketing and promotions Other ​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses and other current liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DEBT

DEBT	3 Months Ended
	Jun. 30, 2016
DEBT
DEBT	9. DEBT Credit Agreement In April 2016, we entered into a Sixth Amendment to our Second Amended and Restated Credit Agreement (as amended, the "Credit Agreement"). The Credit Agreement provides for borrowings of up to $100,000 which may be increased by up to $100,000 pursuant to the terms of the Credit Agreement, and is secured by substantially all of our assets and the equity of our subsidiaries. The Credit Agreement expires on August 18, 2019. Revolving loans under the Credit Agreement bear interest at our election of (a) 0.25% to 0.75% above a certain base rate (3.75% at June 30, 2016), or (b) 1.25% to 1.75% above the LIBOR Rate (approximately 1.71% at June 30, 2016), with the margin rate subject to the achievement of certain average liquidity levels. We are also required to pay a monthly fee on the unused available balance, ranging from 0.25% to 0.375% based on availability. We had no outstanding borrowings at June 30, 2016 and March 31, 2016. Availability under the Credit Agreement is unrestricted when liquidity, as defined in the Credit Agreement, is at least $300,000. When liquidity is below $300,000 availability under the Credit Agreement is restricted by our United States and United Kingdom based accounts receivable and inventory balances. The Credit Agreement also allows for the issuance of letters of credit in an aggregate amount of up to $5,000. Information related to availability on our Credit Agreement is as follows: June 30, 2016 March 31, 2016 Available borrowings $ $ Outstanding letters of credit We recorded interest expense and fees related to the Credit Agreement of $110 for each of the three months ended June 30, 2016 and 2015. The Credit Agreement contains covenants that substantially limit us and our subsidiaries' ability to: create, incur, assume or be liable for indebtedness; dispose of assets outside the ordinary course of business; acquire, merge or consolidate with or into another person or entity; create, incur or allow any lien on any of their respective properties; make investments; or pay dividends or make distributions (each subject to certain limitations); or optionally prepay any indebtedness (subject to certain exceptions, including an exception permitting the redemption of our unsecured convertible senior notes upon the meeting of certain minimum liquidity requirements). In addition, the Credit Agreement provides for certain events of default such as nonpayment of principal and interest, breaches of representations and warranties, noncompliance with covenants, acts of insolvency, default on indebtedness held by third parties and default on certain material contracts (subject to certain limitations and cure periods). The Credit Agreement also contains a requirement that we maintain an interest coverage ratio of more than one to one for the trailing twelve month period, if certain average liquidity levels fall below $30,000. 1.75% Convertible Notes Due 2016 On November 16, 2011, we issued $250,000 aggregate principal amount of 1.75% Convertible Notes due 2016. The issuance of the 1.75% Convertible Notes included $30,000 related to the exercise of an over-allotment option by the underwriters. Interest on the 1.75% Convertible Notes is payable semi-annually in arrears on June 1st and December 1st of each year, commencing on June 1, 2012. The 1.75% Convertible Notes mature on December 1, 2016, unless earlier repurchased by the Company or converted. We do not have the right to redeem the 1.75% Convertible Notes prior to maturity. The 1.75% Convertible Notes are convertible at an initial conversion rate of 52.3745 shares of our common stock per $1 principal amount of 1.75% Convertible Notes (representing an initial conversion price of approximately $19.093 per share of common stock for a total of approximately 13,094,000 underlying conversion shares) subject to adjustment in certain circumstances. As of June 1, 2016 until the close of business on the business day immediately preceding the maturity date, holders may convert their 1.75% Convertible Notes at any time. Upon conversion, the 1.75% Convertible Notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Our current intent and ability, given our option, would be to settle the 1.75% Convertible Notes conversion in shares of our common stock. As such, we have continued to classify these 1.75% Convertible Notes as long-term debt. Upon the occurrence of certain fundamental changes involving the Company, holders of the 1.75% Convertible Notes may require us to purchase all or a portion of their 1.75% Convertible Notes for cash at a price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest (including additional interest, if any) to, but excluding, the fundamental change purchase date. The indenture governing the 1.75% Convertible Notes contains customary terms and covenants and events of default. If an event of default (as defined therein) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in aggregate principal amount of the 1.75% Convertible Notes then outstanding by notice to the Company and the Trustee, may, and the Trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid interest (including additional interest, if any) on all the 1.75% Convertible Notes to be due and payable. In the case of an event of default arising out of certain bankruptcy events, 100% of the principal of and accrued and unpaid interest (including additional interest, if any), on the 1.75% Convertible Notes will automatically become due and payable immediately. The 1.75% Convertible Notes are senior unsecured obligations and rank senior in right of payment to our existing and future indebtedness that is expressly subordinated in right of payment to the 1.75% Convertible Notes; equal in right of payment to our existing and future indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness incurred by our subsidiaries. We separately account for the liability and equity components of the 1.75% Convertible Notes in a manner that reflects our nonconvertible debt borrowing rate when interest expense is recognized in subsequent periods. We estimated the fair value of the 1.75% Convertible Notes to be $197,373, as of the date of issuance of our 1.75% Convertible Notes, assuming a 6.9% non-convertible borrowing rate. The carrying amount of the equity component was determined to be $52,627 by deducting the fair value of the liability component from the par value of the 1.75% Convertible Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest and other, net over the term of the 1.75% Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the $6,875 of banking, legal and accounting fees related to the issuance of the 1.75% Convertible Notes, we allocated $5,428 to the liability component and $1,447 to the equity component. Debt issuance costs attributable to the liability component are being amortized to interest and other, net over the term of the 1.75% Convertible Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. As of June 30, 2016 and March 31, 2016, the if-converted value of our 1.75% Convertible Notes exceeded the principal amount of $250,000 by $246,524 and $243,251, respectively. The following table provides additional information related to our 1.75% Convertible Notes: June 30, 2016 March 31, 2016 Additional paid-in capital $ $ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of 1.75% Convertible Notes $ $ Unamortized discount of the liability component Carrying amount of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount of 1.75% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table provides the components of interest expense related to our 1.75% Convertible Notes: Three Months Ended June 30, 2016 2015 Cash interest expense (coupon interest expense) $ $ Non-cash amortization of discount on 1.75% Convertible Notes Amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total interest expense related to 1.75% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1.00% Convertible Notes Due 2018 On June 18, 2013, we issued $250,000 aggregate principal amount of 1.00% Convertible Notes due 2018. The 1.00% Convertible Notes were issued at 98.5% of par value for proceeds of $246,250. Interest on the 1.00% Convertible Notes is payable semi-annually in arrears on July 1st and January 1st of each year, commencing on January 1, 2014. The 1.00% Convertible Notes mature on July 1, 2018, unless earlier repurchased by the Company or converted. We do not have the right to redeem the 1.00% Convertible Notes prior to maturity. We also granted the underwriters a 30-day option to purchase up to an additional $37,500 principal amount of 1.00% Convertible Notes to cover overallotments, if any. On July 17, 2013, we closed our public offering of $37,500 principal amount of our 1.00% Convertible Notes as a result of the underwriters exercising their overallotment option in full on July 12, 2013, bringing the total proceeds to $283,188. The 1.00% Convertible Notes are convertible at an initial conversion rate of 46.4727 shares of our common stock per $1 principal amount of 1.00% Convertible Notes (representing an initial conversion price of approximately $21.52 per share of common stock for a total of approximately 13,361,000 underlying conversion shares) subject to adjustment in certain circumstances. Holders may convert the 1.00% Convertible Notes at their option prior to the close of business on the business day immediately preceding January 1, 2018 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2013, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the "measurement period") in which the trading price per $1 principal amount of 1.00% Convertible Notes for each day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such day; or (3) upon the occurrence of specified corporate events. On and after January 1, 2018 until the close of business on the business day immediately preceding the maturity date, holders may convert their 1.00% Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 1.00% Convertible Notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Our common stock price exceeded 130% of the applicable conversion price per share for at least 20 trading days during the 30 consecutive trading days ended June 30, 2016. Accordingly, as of July 1, 2016, the 1.00% Convertible Notes may be converted at the holder's option through September 30, 2016. Our current intent and ability, given our option, would be to settle the 1.00% Convertible Notes conversion in shares of our common stock. As such, we have continued to classify these 1.00% Convertible Notes as long-term debt. Upon the occurrence of certain fundamental changes involving the Company, holders of the 1.00% Convertible Notes may require us to purchase all or a portion of their 1.00% Convertible Notes for cash at a price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest (including additional interest, if any) to, but excluding, the fundamental change purchase date. The indenture governing the 1.00% Convertible Notes contains customary terms and covenants and events of default. If an event of default (as defined therein) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in aggregate principal amount of the 1.00% Convertible Notes then outstanding by notice to the Company and the Trustee, may, and the Trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid interest (including additional interest, if any) on all the 1.00% Convertible Notes to be due and payable. In the case of an event of default arising out of certain bankruptcy events, 100% of the principal of and accrued and unpaid interest (including additional interest, if any), on the 1.00% Convertible Notes will automatically become due and payable immediately. The 1.00% Convertible Notes are senior unsecured obligations and rank senior in right of payment to our existing and future indebtedness that is expressly subordinated in right of payment to the 1.00% Convertible Notes; equal in right of payment to our existing and future indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness incurred by our subsidiaries. We separately account for the liability and equity components of the 1.00% Convertible Notes in a manner that reflects our nonconvertible debt borrowing rate. We estimated the fair value of the 1.00% Convertible Notes to be $225,567 upon issuance of our 1.00% Convertible Notes, assuming a 6.15% non-convertible borrowing rate. The carrying amount of the equity component was determined to be approximately $57,621 by deducting the fair value of the liability component from the net proceeds of the 1.00% Convertible Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest and other, net over the term of the 1.00% Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the $2,815 of banking, legal and accounting fees related to the issuance of the 1.00% Convertible Notes, we allocated $2,209 to the liability component and $606 to the equity component. Debt issuance costs attributable to the liability component are being amortized to interest and other, net over the term of the 1.00% Convertible Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. As of June 30, 2016 and March 31, 2016, the if-converted value of our 1.00% Convertible Notes exceeded the principal amount of $287,500 by $219,149 and $215,809, respectively. The following table provides additional information related to our 1.00% Convertible Notes: June 30, 2016 March 31, 2016 Additional paid-in capital $ $ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of 1.00% Convertible Notes $ $ Unamortized discount of the liability component Carrying amount of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount of 1.00% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table provides the components of interest expense related to our 1.00% Convertible Notes: Three Months Ended June 30, 2016 2015 Cash interest expense (coupon interest expense) $ $ Non-cash amortization of discount on 1.00% Convertible Notes Amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total interest expense related to 1.00% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

LOSS PER SHARE ("EPS")

LOSS PER SHARE ("EPS")	3 Months Ended
	Jun. 30, 2016
LOSS PER SHARE ("EPS")
LOSS PER SHARE ("EPS")	10. LOSS PER SHARE ("EPS") The following table sets forth the computation of basic and diluted loss per share (shares in thousands): Three Months Ended June 30, 2016 2015 Computation of Basic and Diluted Loss per Share: Net loss $ ) $ ) Weighted average common shares outstanding—basic and diluted and diluted ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted loss per share $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We incurred a net loss for the three months ended June 30, 2016 and 2015; therefore, the basic and diluted weighted average shares outstanding exclude the effect of the unvested share-based awards that are considered participating securities and all common stock equivalents because their effect would be antidilutive. For the three months ended June 30, 2016 and 2015, we had 5,428,000 and 3,739,000, respectively, of unvested share-based awards which are excluded from the EPS calculation due to the net loss for those periods. Certain of our unvested restricted stock awards (including restricted stock units, and time-based and market-based restricted stock awards) are considered participating securities since these securities have non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award, and thus require the two-class method of computing EPS. We define common stock equivalents as non-participating restricted stock awards and common stock equivalents underlying the Convertible Notes (see Note 9) outstanding during the period. Common stock equivalents are measured using the treasury stock method, except for the Convertible Notes, which are assessed for their effect on diluted EPS using the more dilutive of the treasury stock method or the if-converted method. Under the provisions of the if-converted method, the Convertible Notes are assumed to be converted and included in the denominator of the EPS calculation and the interest expense, net of tax, recorded in connection with the Convertible Notes is added back to the numerator. During the three months ended June 30, 2016, 2,158,000 restricted stock awards vested, and we issued 908,000 of unvested restricted stock awards and canceled 39,000 of unvested restricted stock awards.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Jun. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table provides the components of accumulated other comprehensive income (loss): Three Months Ended June 30, 2016 Foreign currency translation adjustments Unrealized gain (loss) on derivative instruments Unrealized gain (loss) on available-for-sales securities(1) Total Balance at March 31, 2016 $ ) $ $ $ ) Other comprehensive income (loss) before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2016 $ ) $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Amounts reclassified from Accumulated other comprehensive income (loss) are included in Interest and other, net in our Condensed Consolidated Statement of Operations. Three Months Ended June 30, 2015 Foreign currency translation adjustments Unrealized gain (loss) on derivative instruments Unrealized gain (loss) on available-for-sales securities Total Balance at March 31, 2015 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2015 $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
	Jun. 30, 2016
SEGMENT AND GEOGRAPHIC INFORMATION
SEGMENT AND GEOGRAPHIC INFORMATION	12. SEGMENT AND GEOGRAPHIC INFORMATION We are a publisher of interactive software games designed for console systems and personal computers, including smart phones and tablets, which are delivered through physical retail, digital download, online platforms and cloud streaming services. Our business consists of our Rockstar Games and 2K labels, which represent a single operating segment, the "publishing segment". Our operations involve similar products and customers worldwide. Revenue earned from our publishing segment is primarily derived from the sale of internally developed software titles and software titles developed by third-parties. Our operating segment is based upon our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to evaluate performance and allocate resources. We are centrally managed and the CODM primarily uses segment operating income, supplemented by sales information by product category, major product title and platform, to make operational decisions and assess financial performance. We add the change in deferred revenue to GAAP revenue to arrive at segment revenue. Segment revenue is a key metric that we use to manage our business as it reflects the sales activity in a given period and provides a more timely indication of trends in our business. Furthermore, segment revenue incorporates the change in deferred revenue that is reflected in the calculation of Segment operating income. Segment operating income differs from consolidated operating income due to the exclusion of the deferral of net revenues and associated costs related to sales generated from certain titles for which we have or expect to provide PCS deemed to be significant and virtual currency transactions, stock-based compensation expenses, and business reorganization and other expenses that may not be indicative of our core business, operating results or future outlook. Our CODM reviews assets on a consolidated basis and not on a segment basis. The following table summarizes the financial performance of our operating segment revenue and operating income (loss) and provides reconciliations to our consolidated net revenue and operating (loss) income: Three Months Ended June 30, 2016 2015 2016 2015 Net Revenue Operating (loss) income Operating Segment $ $ $ ) $ Reconciliation to consolidated net revenue / operating loss: Net effect of deferral of net revenues and related cost of goods sold ) ) Stock based compensation expense — — ) ) Business reorganization and other expenses — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated net revenue / operating loss $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We attribute net revenue to geographic regions based on product destination. Net revenue by geographic region was as follows: Three Months Ended June 30, Net revenue by geographic region: 2016 2015 United States $ $ Europe Asia Pacific Canada and Latin America ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net revenue by product platform was as follows: Three Months Ended June 30, Net revenue by product platform: 2016 2015 Console $ $ PC and other ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Our products are delivered through physical retail and digital online services (digital download, online platforms and cloud streaming). Net revenue by distribution channel was as follows: Three Months Ended June 30, Net revenue by distribution channel: 2016 2015 Digital online $ $ Physical retail and other ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES At June 30, 2016, we did not have any significant changes to our commitments since March 31, 2016. See Note 13 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended March 31, 2016 for more information regarding our commitments. Legal and Other Proceedings We are, or may become, subject to demands and claims (including intellectual property claims) and are involved in routine litigation in the ordinary course of business which we do not believe to be material to our business or financial statements. We have appropriately accrued amounts related to certain of these claims and legal and other proceedings. While it is reasonably possible that a loss may be incurred in excess of the amounts accrued in our financial statements, we believe that such losses, unless otherwise disclosed, would not be material. On April 11, 2016, we filed a declaratory judgment action in the United States District Court for the Southern District of New York seeking, among other things, a judicial declaration that Leslie Benzies, the former president of one of our subsidiaries with whom we had been in ongoing discussions regarding his separation of employment, is not entitled to any minimum allocation or financial parity with any other person under the applicable royalty plan. We believe we will prevail in this matter, although there can be no assurance of the outcome. On April 12, 2016, Mr. Benzies filed a complaint in the Supreme Court of the State of New York, New York County against us, and certain of our subsidiaries and employees. We removed this case to the United States District Court for the Southern District of New York, where our declaratory judgment action is pending. Mr. Benzies' complaint claims damages of at least $150,000 and contains allegations of breach of fiduciary duty; fraudulent inducement and fraudulent concealment; aiding and abetting breach of fiduciary duty; breach of various contracts; breach of implied duty of good faith and fair dealing; tortious interference with contract; unjust enrichment; reformation; constructive trust; declaration of rights; constructive discharge; defamation and fraud. While we believe that we have meritorious defenses to these claims, and we intend to vigorously defend against them and to pursue any counterclaims, we have accrued what we believe to be an adequate reserve for this matter, which amounts are classified as Business reorganization within Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheet (see Note 8). We do not believe that the ultimate outcome of such litigation, even if in excess of our current reserve, will have a material adverse effect on our business, financial condition or results of operations.

BASIS OF PRESENTATION AND SIG20

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in the opinion of management, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All inter-company accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under generally accepted accounting principles in the United States, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the year ended March 31, 2016. Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Accounting for Stock Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation. This new guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This update is effective for annual periods beginning after December 15, 2016 (April 1, 2017 for the Company) and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, "Leases." This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. This update is effective for annual periods, and interim periods within those years, beginning after December 15, 2018 (April 1, 2019 for the Company). This new guidance must be adopted using a modified retrospective approach whereby lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), as a new Topic, Accounting Standards Codification Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB amended ASU 2014-09 by issuing ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations included in ASU 2014-09. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to customers. In April 2016, the FASB amended ASU 2014-09 by issuing ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on licensing and identifying performance obligations. In May 2016, the FASB further amended ASU 2014-09 by issuing ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which does not change the core principles of the standard, but clarifies the guidance on assessing collectibility, presenting sales taxes, measuring noncash consideration, and certain transition matters. ASU 2014-09 and its amendments can be adopted retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB voted to defer the effective date by one year to annual and interim years beginning after December 15, 2017 (April 1, 2018 for the Company). Early adoption is permitted, but no earlier than the original effective date of annual and interim periods beginning after December 15, 2016 (April 1, 2017 for the Company). While we continue to evaluate the impact and available implementation approaches, we believe adoption of ASU 2014-09, as amended, may have a material impact on the allocation and timing of revenue recognition and associated cost of goods sold.

MANAGEMENT AGREEMENT (Tables)

MANAGEMENT AGREEMENT (Tables)	3 Months Ended
	Jun. 30, 2016
MANAGEMENT AGREEMENT
Schedule of restricted stock units granted	Three Months Ended June 30, 2016 2015 Time-based Market-based(1) Performance-based(1) New IP Major IP ​ ​ ​ ​ ​ ​ ​ ​ Total- Performance-based ​ ​ ​ ​ ​ ​ ​ ​ Total Restricted Stock Units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents the maximum number of shares eligible to vest.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Jun. 30, 2016
FAIR VALUE MEASUREMENTS
Segregation of all assets measured at fair value on a recurring basis	June 30, 2016 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ $ $ — $ — Cash and cash equivalents Bank-time deposits — — Cash and cash equivalents Corporate bonds — — Short-term investments Bank-time deposits — — Short-term investments Foreign currency forward contracts ) — ) — Accrued and other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recurring fair value measurements, net $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2016 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ $ $ — $ — Cash and cash equivalents Corporate bonds — — Short-term investments Bank-time deposits — — Short-term investments Foreign currency forward contracts ) — ) — Accrued and other current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total recurring fair value measurements, net $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	3 Months Ended
	Jun. 30, 2016
SHORT -TERM INVESTMENTS
Schedule of short-term investments	June 30, 2016 Gross Unrealized Cost or Amortized Cost Fair Value Gains Losses Short-term investments Bank time deposits $ $ — $ — $ Available-for-sale securities: Corporate bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2016 Gross Unrealized Cost or Amortized Cost Fair Value Gains Losses Short-term investments Bank time deposits $ $ — $ — $ Available-for-sale securities: Corporate bonds ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of the contracted maturities of short-term investments	June 30, 2016 Amortized Cost Fair Value Short-term investments Due in 1 year or less $ $ Due in 1 - 2 years ​ ​ ​ ​ ​ ​ ​ ​ Total short-term investments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DERIVATIVE INSTRUMENTS AND HE24

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	3 Months Ended
	Jun. 30, 2016
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Schedule of gross notional amounts of foreign currency forward contracts	June 30, 2016 March 31, 2016 Forward contracts to sell foreign currencies $ $ Forward contracts to purchase foreign currencies

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Jun. 30, 2016
INVENTORY
Inventory balances by category	June 30, 2016 March 31, 2016 Finished products $ $ Parts and supplies ​ ​ ​ ​ ​ ​ ​ ​ Inventory $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SOFTWARE DEVELOPMENT COSTS AN26

SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables)	3 Months Ended
	Jun. 30, 2016
SOFTWARE DEVELOPMENT COSTS AND LICENSES
Schedule of capitalized software development costs and licenses	June 30, 2016 March 31, 2016 Current Non-current Current Non-current Software development costs, internally developed $ $ $ $ Software development costs, externally developed Licenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Software development costs and licenses $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

ACCRUED EXPENSES AND OTHER CU27

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Jun. 30, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Components of accrued expenses and other current liabilities	June 30, 2016 March 31, 2016 Software development royalties $ $ Business reorganization Compensation and benefits Licenses Marketing and promotions Other ​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses and other current liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Jun. 30, 2016
DEBT
Information related to availability on Credit Agreement	June 30, 2016 March 31, 2016 Available borrowings $ $ Outstanding letters of credit
1.75% Convertible Notes due 2016
DEBT
Schedule of additional information related to convertible notes	June 30, 2016 March 31, 2016 Additional paid-in capital $ $ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of 1.75% Convertible Notes $ $ Unamortized discount of the liability component Carrying amount of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount of 1.75% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of interest expense related to convertible notes	Three Months Ended June 30, 2016 2015 Cash interest expense (coupon interest expense) $ $ Non-cash amortization of discount on 1.75% Convertible Notes Amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total interest expense related to 1.75% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
1.00% Convertible Notes due 2018
DEBT
Schedule of additional information related to convertible notes	June 30, 2016 March 31, 2016 Additional paid-in capital $ $ ​ ​ ​ ​ ​ ​ ​ ​ Principal amount of 1.00% Convertible Notes $ $ Unamortized discount of the liability component Carrying amount of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Net carrying amount of 1.00% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of interest expense related to convertible notes	Three Months Ended June 30, 2016 2015 Cash interest expense (coupon interest expense) $ $ Non-cash amortization of discount on 1.00% Convertible Notes Amortization of debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total interest expense related to 1.00% Convertible Notes $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

LOSS PER SHARE ("EPS") (Tables)

LOSS PER SHARE ("EPS") (Tables)	3 Months Ended
	Jun. 30, 2016
LOSS PER SHARE ("EPS")
Schedule of computation of basic and diluted EPS	The following table sets forth the computation of basic and diluted loss per share (shares in thousands): Three Months Ended June 30, 2016 2015 Computation of Basic and Diluted Loss per Share: Net loss $ ) $ ) Weighted average common shares outstanding—basic and diluted and diluted ​ ​ ​ ​ ​ ​ ​ ​ Basic and diluted loss per share $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

ACCUMULATED OTHER COMPREHENSI30

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Jun. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of components of accumulated other comprehensive income (loss)	Three Months Ended June 30, 2016 Foreign currency translation adjustments Unrealized gain (loss) on derivative instruments Unrealized gain (loss) on available-for-sales securities(1) Total Balance at March 31, 2016 $ ) $ $ $ ) Other comprehensive income (loss) before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2016 $ ) $ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Amounts reclassified from Accumulated other comprehensive income (loss) are included in Interest and other, net in our Condensed Consolidated Statement of Operations. Three Months Ended June 30, 2015 Foreign currency translation adjustments Unrealized gain (loss) on derivative instruments Unrealized gain (loss) on available-for-sales securities Total Balance at March 31, 2015 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at June 30, 2015 $ ) $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SEGMENT AND GEOGRAPHIC INFORM31

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Jun. 30, 2016
SEGMENT AND GEOGRAPHIC INFORMATION
Schedule of operating segment revenue and operating income (loss) and reconciliations to net revenue and operating (loss) income	Three Months Ended June 30, 2016 2015 2016 2015 Net Revenue Operating (loss) income Operating Segment $ $ $ ) $ Reconciliation to consolidated net revenue / operating loss: Net effect of deferral of net revenues and related cost of goods sold ) ) Stock based compensation expense — — ) ) Business reorganization and other expenses — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated net revenue / operating loss $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net revenue by geographic region	Three Months Ended June 30, Net revenue by geographic region: 2016 2015 United States $ $ Europe Asia Pacific Canada and Latin America ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net revenue by product platform	Three Months Ended June 30, Net revenue by product platform: 2016 2015 Console $ $ PC and other ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net revenue by distribution channel	Three Months Ended June 30, Net revenue by distribution channel: 2016 2015 Digital online $ $ Physical retail and other ​ ​ ​ ​ ​ ​ ​ ​ Total net revenue $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

BASIS OF PRESENTATION AND SIG32

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - WHOLLY OWNED LABELS (Details)	3 Months Ended
	Jun. 30, 2016item
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Wholly-owned labels	2

MANAGEMENT AGREEMENT (Details)

MANAGEMENT AGREEMENT (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2014	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Restricted stock units
Management Agreement
Stock-based compensation expense for non-employee awards		$ 3,889	$ 7,323
2014 Management Agreement | Restricted stock units | Maximum
Management Agreement
Vesting requirement for market-based restricted stock		75th	75th
2014 Management Agreement | Restricted stock awards
Management Agreement
Vested (in shares)		(591,912)
Forfeited (in shares)		(27,578)
Zelnick Media Corporation ("ZelnickMedia")
Management Agreement
Consulting expense benefit		$ 1,337	$ 1,337
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement
Management Agreement
Annual management fee	$ 2,970
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Maximum
Management Agreement
Bonus per fiscal year based on the achievement of certain performance thresholds	$ 4,752
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Time-based restricted units
Management Agreement
Granted (in shares)		107,551	151,575
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Market-based restricted stock
Management Agreement
Percentage of grants earned (as a percent)		50.00%	50.00%
Vesting requirement for market-based restricted stock		50th	50th
Vesting period		2 years	2 years
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | New IP
Management Agreement
Granted (in shares)		33,174	46,752
Percentage of grants earned (as a percent)		50.00%	50.00%
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Major IP
Management Agreement
Granted (in shares)		33,172	46,752
Percentage of grants earned (as a percent)		50.00%	50.00%
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Market-based restricted units
Management Agreement
Granted (in shares)		199,038	280,512
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Performance-based restricted units
Management Agreement
Granted (in shares)		66,346	93,504
Percentage of grants earned (as a percent)		50.00%	50.00%
Vesting period		2 years	2 years
Zelnick Media Corporation ("ZelnickMedia") | 2014 Management Agreement | Restricted stock units
Management Agreement
Granted (in shares)		372,935	525,591
Unvested portion of the shares of restricted stock granted		898,526		1,145,081

FAIR VALUE MEASUREMENTS - ASSET

FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	$ 994,276	$ 1,033,409
Cash and Cash Equivalents
Assets measured at fair value on a recurring basis
Money market funds	518,581	562,726
Bank-time deposits	83,294
Short term investments.
Assets measured at fair value on a recurring basis
Corporate bonds	206,011	205,250
Bank-time deposits	186,478	265,570
Accrued Expenses and other current liabilities
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	(88)	(137)
Quoted prices in active markets for identical assets (level 1)
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	788,353	828,296
Quoted prices in active markets for identical assets (level 1) | Cash and Cash Equivalents
Assets measured at fair value on a recurring basis
Money market funds	518,581	562,726
Bank-time deposits	83,294
Quoted prices in active markets for identical assets (level 1) | Short term investments.
Assets measured at fair value on a recurring basis
Bank-time deposits	186,478	265,570
Significant other observable inputs (level 2)
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	205,923	205,113
Significant other observable inputs (level 2) | Short term investments.
Assets measured at fair value on a recurring basis
Corporate bonds	206,011	205,250
Significant other observable inputs (level 2) | Accrued Expenses and other current liabilities
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	$ (88)	$ (137)

FAIR VALUE MEASUREMENTS - DEBT

FAIR VALUE MEASUREMENTS - DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Jul. 12, 2013	Jun. 18, 2013	Nov. 16, 2011
1.75% Convertible Notes due 2016
DEBT
Estimated fair value of convertible notes	$ 496,500				$ 197,373
Interest rate on convertible notes (as a percent)	1.75%	1.75%			1.75%
1.00% Convertible Notes due 2018
DEBT
Estimated fair value of convertible notes	$ 516,005		$ 225,567
Interest rate on convertible notes (as a percent)	1.00%	1.00%	1.00%	1.00%

SHORT-TERM INVESTMENTS (Details

SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Short-term investments:
Cost or Amortized Cost	$ 392,194	$ 470,736
Gross Unrealized Gains	318	131
Gross Unrealized Losses	(23)	(47)
Fair Value	392,489	470,820
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity
Due in 1 year or less	337,191
Due in 1-2 years	55,003
Total amortized cost	392,194
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity
Due in 1 year or less	337,301
Due in 1-2 years	55,188
Total fair value	392,489
Bank time deposits
Short-term investments:
Cost or Amortized Cost	186,478	265,570
Fair Value	186,478	265,570
Corporate bonds
Short-term investments:
Cost or Amortized Cost	205,716	205,166
Gross Unrealized Gains	318	131
Gross Unrealized Losses	(23)	(47)
Fair Value	$ 206,011	$ 205,250

DERIVATIVE INSTRUMENTS AND HE37

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - Foreign Currency Forward Contract - Not Designated As Hedging Instrument - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Derivative
Outstanding forward contracts to sell foreign currency in exchange for U.S. dollars	$ 31,340		$ 54,529
Outstanding forward contracts to purchase foreign currency in exchange for U.S. dollars	12,112		$ 2,409
Interest and other, net
Derivative
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 798	$ (662)

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
INVENTORY
Finished products	$ 11,272	$ 14,321
Parts and supplies	1,462	1,567
Inventory	12,734	15,888
Estimated product returns included in inventory	$ 832	$ 527

SOFTWARE DEVELOPMENT COSTS AN39

SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Capitalized software development costs and licenses
Software development costs and licenses, Current	$ 167,218		$ 178,387
Software development costs and licenses, Non-current	247,272		214,831
Software development costs and licenses related to titles that have not been released	369,273		343,450
Software development impairment charges	9,068	$ 1,710
Software development costs, internally developed
Capitalized software development costs and licenses
Software development costs and licenses, Current	146,187		131,378
Software development costs and licenses, Non-current	195,985		162,261
Software development costs, externally developed
Capitalized software development costs and licenses
Software development costs and licenses, Current	20,301		46,888
Software development costs and licenses, Non-current	45,134		45,703
Licenses
Capitalized software development costs and licenses
Software development costs and licenses, Current	730		121
Software development costs and licenses, Non-current	$ 6,153		$ 6,867

ACCRUED EXPENSES AND OTHER CU40

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Software development royalties	$ 445,171	$ 414,492
Business reorganization	65,935	66,323
Compensation and benefits	34,216	39,919
Licenses	27,899	31,825
Marketing and promotions	20,629	14,938
Other	25,585	39,982
Accrued expenses and other current liabilities	$ 619,435	$ 607,479

DEBT - CREDIT AGREEMENT (Detail

DEBT - CREDIT AGREEMENT (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2016USD ($)
Credit Agreement
Credit Agreement
Maximum borrowing capacity	$ 100,000
Amount of additional borrowings by which maximum borrowing capacity may be increased	$ 100,000
Outstanding borrowings		$ 0		$ 0
Credit Agreement Availability
Minimum liquidity level allowing unrestricted access to the Credit Agreement		300,000
Available borrowings		98,266		98,335
Outstanding letters of credit		1,731		$ 1,664
Interest expense and fees		$ 110	$ 110
Trailing period for measurement of interest coverage ratio	12 months
Maximum liquidity level triggering the requirement to maintain an interest coverage ratio of one to one	$ 30,000
Credit Agreement | Minimum
Credit Agreement
Monthly fee on unused available balance (as a percent)	0.25%
Credit Agreement Availability
Interest coverage ratio	1
Credit Agreement | Maximum
Credit Agreement
Monthly fee on unused available balance (as a percent)	0.375%
Credit Agreement | Base rate
Credit Agreement
Interest rate, variable rate basis		base rate
Interest rate at end of period (as a percent)		3.75%
Credit Agreement | Base rate | Minimum
Credit Agreement
Interest rate added to base rate (as a percent)	0.25%
Credit Agreement | Base rate | Maximum
Credit Agreement
Interest rate added to base rate (as a percent)	0.75%
Credit Agreement | LIBOR
Credit Agreement
Interest rate, variable rate basis		LIBOR
Interest rate at end of period (as a percent)		1.71%
Credit Agreement | LIBOR | Minimum
Credit Agreement
Interest rate added to base rate (as a percent)	1.25%
Credit Agreement | LIBOR | Maximum
Credit Agreement
Interest rate added to base rate (as a percent)	1.75%
Letter of Credit
Credit Agreement
Maximum borrowing capacity	$ 5,000

DEBT - CONVERTIBLE NOTES (Detai

DEBT - CONVERTIBLE NOTES (Details) $ / shares in Units, $ in Thousands	Jul. 12, 2013USD ($)item	Jun. 18, 2013USD ($)item$ / shares	Nov. 16, 2011USD ($)item$ / shares	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2016USD ($)
Components of interest expense
Non-cash amortization of discount on Convertible Notes				$ 6,098	$ 5,727
Amortization of debt issuance costs				$ 381	398
1.75% Convertible Notes due 2016
Convertible Notes
Principal amount at issuance			$ 250,000
Interest rate on convertible notes (as a percent)			1.75%	1.75%		1.75%
Amount pertaining to exercise of over-allotment of debt by underwriters			$ 30,000
Initial conversion rate of common stock per $1000 of principal amount of Convertible Notes (in shares)			52.3745
Principal amount used for debt instrument conversion ratio			$ 1
Initial conversion price of convertible notes into common stock (in dollars per share) | $ / shares			$ 19.093
Number of shares to be converted into common stock | item			13,094,000
Estimated fair value of convertible notes			$ 197,373	$ 496,500
Non-convertible borrowing rate (as a percent)			6.90%
Carrying amount of the equity component of convertible notes			$ 52,627
Banking, legal and accounting fees related to issuance of convertible notes			6,875
Banking, legal and accounting fees related to issuance of convertible notes allocated to the liability component			5,428
Banking, legal and accounting fees related to issuance of convertible notes allocated to the equity component			$ 1,447
The value by which Convertible Notes exceed the principal value				246,524		$ 243,251
Additional information related to convertible notes
Additional paid-in capital				51,180		51,180
Principal amount of Convertible Notes				250,000		250,000
Unamortized discount of the liability component				5,051		8,014
Carrying amount of debt issuance costs				412		657
Net carrying amount of Convertible Notes				244,537		$ 241,329
Components of interest expense
Cash interest expense (coupon interest expense)				1,094	1,094
Non-cash amortization of discount on Convertible Notes				2,963	2,773
Amortization of debt issuance costs				245	256
Total interest expense related to Convertible Notes				$ 4,302	4,123
1.75% Convertible Notes due 2016 | Conversion Terms upon Occurrence of Certain Fundamental Company Changes
Convertible Notes
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest			100.00%
1.75% Convertible Notes due 2016 | Conversion Terms, Event of Default
Convertible Notes
Minimum percentage of aggregate principal amount held by bondholders to declare notes due and payable			25.00%
In event of default arising out of certain bankruptcy events, the percentage of principal amount due and payable			100.00%
1.00% Convertible Notes due 2018
Convertible Notes
Principal amount at issuance		$ 250,000
Interest rate on convertible notes (as a percent)	1.00%	1.00%		1.00%		1.00%
Percentage of par value at which debt was issued		98.50%
Period of overallotment option to purchase additional amount of debt granted to underwriters		30 days
Amount pertaining to exercise of over-allotment of debt by underwriters	$ 37,500
Proceeds from issuance of debt	$ 283,188	$ 246,250
Initial conversion rate of common stock per $1000 of principal amount of Convertible Notes (in shares)		46.4727
Principal amount used for debt instrument conversion ratio		$ 1
Initial conversion price of convertible notes into common stock (in dollars per share) | $ / shares		$ 21.52
Number of shares to be converted into common stock | item	13,361,000
Estimated fair value of convertible notes	$ 225,567			$ 516,005
Non-convertible borrowing rate (as a percent)	6.15%
Carrying amount of the equity component of convertible notes	$ 57,621
Banking, legal and accounting fees related to issuance of convertible notes	2,815
Banking, legal and accounting fees related to issuance of convertible notes allocated to the liability component	2,209
Banking, legal and accounting fees related to issuance of convertible notes allocated to the equity component	$ 606
The value by which Convertible Notes exceed the principal value				219,149		$ 215,809
Additional information related to convertible notes
Additional paid-in capital				35,784		35,784
Principal amount of Convertible Notes				287,500		287,500
Unamortized discount of the liability component				26,837		29,972
Carrying amount of debt issuance costs				815		922
Net carrying amount of Convertible Notes				259,848		$ 256,606
Components of interest expense
Cash interest expense (coupon interest expense)				719	719
Non-cash amortization of discount on Convertible Notes				3,135	2,954
Amortization of debt issuance costs				107	112
Total interest expense related to Convertible Notes				$ 3,961	$ 3,785
1.00% Convertible Notes due 2018 | Maximum
Convertible Notes
Additional amount of debt for purchase of which overallotment option is granted to underwriters		$ 37,500
1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option
Convertible Notes
Principal amount used for debt instrument conversion ratio		$ 1
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent)		130.00%		130.00%
Ratio of closing share price to conversion price as a condition for conversion of Convertible Notes (as a percent)		98.00%
1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option | Minimum
Convertible Notes
Number of trading days triggering conversion of redemption feature		20 days		20 days
Number of trading days in the measurement period that the entity's common stock closing price to conversion price must exceed a specified percentage of conversion price to trigger conversion feature of notes | item		5
1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option | Maximum
Convertible Notes
Number of trading days triggering conversion of redemption feature		30 days		30 days
Number of trading days in the measurement period that the entity's common stock closing price to conversion price must exceed a specified percentage of conversion price to trigger conversion feature of notes | item		10
1.00% Convertible Notes due 2018 | Conversion Terms upon Occurrence of Certain Fundamental Company Changes
Convertible Notes
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest		100.00%
1.00% Convertible Notes due 2018 | Conversion Terms, Event of Default
Convertible Notes
Minimum percentage of aggregate principal amount held by bondholders to declare notes due and payable		25.00%
In event of default arising out of certain bankruptcy events, the percentage of principal amount due and payable		100.00%

LOSS PER SHARE ("EPS") (Details

LOSS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Computation of Basic and Diluted Loss per Share:
Net loss	$ (38,567)	$ (67,023)
Weighted average common shares outstanding - basic and diluted	84,588,000	82,833,000
Basic and diluted loss per share (in dollars per share)	$ (0.46)	$ (0.81)
Unvested share-based awards excluded from EPS	5,428,000	3,739,000
Restricted stock
Computation of Basic and Diluted Loss per Share:
Restricted stock awards, vested (in shares)	2,158,000
Restricted stock awards, issued (in shares)	908,000
Restricted stock awards, canceled (in shares)	39,000

ACCUMULATED OTHER COMPREHENSI44

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	$ (37,896)	$ (30,624)
Other comprehensive income (loss) before reclassifications	(3,427)	9,061
Amounts reclassified from accumulated other comprehensive income (loss)	4
Balance at the end of the period	(41,319)	(21,563)
Foreign currency translation adjustments
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	(38,580)	(31,216)
Other comprehensive income (loss) before reclassifications	(3,633)	9,102
Balance at the end of the period	(42,213)	(22,114)
Unrealized gain (loss) on derivative instruments
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	600	617
Balance at the end of the period	600	617
Unrealized gain (loss) on available-for-sale securities
Changes in accumulated other comprehensive income (loss)
Balance at the beginning of the period	84	(25)
Other comprehensive income (loss) before reclassifications	206	(41)
Amounts reclassified from accumulated other comprehensive income (loss)	4
Balance at the end of the period	$ 294	$ (66)

SEGMENT AND GEOGRAPHIC INFORM45

SEGMENT AND GEOGRAPHIC INFORMATION - REVENUE AND OPERATING INCOME RECONCILIATION (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)
SEGMENT AND GEOGRAPHIC INFORMATION
Number of reportable segments | segment	1
Reconciliation to consolidated net revenue:
Operating Segment Net Revenue	$ 272,556	$ 366,392
Net effect of deferral of net revenues	38,996	(91,095)
Consolidated net revenue	311,552	275,297
Reconciliation to consolidated operating loss:
Operating Segment Operating (loss) income	(38,256)	48,642
Related cost of goods sold	14,373	(90,965)
Stock based deferral of net revenue and compensation expense	(15,100)	(19,086)
Business reorganization and other expenses		(1,228)
Loss from operations	$ (38,983)	$ (62,637)

SEGMENT AND GEOGRAPHIC INFORM46

SEGMENT AND GEOGRAPHIC INFORMATION - REVENUE BY GEOGRAPHIC REGION (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net revenue by geographic region:
Total net revenue	$ 311,552	$ 275,297
United States
Net revenue by geographic region:
Total net revenue	193,101	143,438
Europe
Net revenue by geographic region:
Total net revenue	73,519	100,223
Asia Pacific
Net revenue by geographic region:
Total net revenue	28,758	20,306
Canada and Latin America
Net revenue by geographic region:
Total net revenue	$ 16,174	$ 11,330

SEGMENT AND GEOGRAPHIC INFORM47

SEGMENT AND GEOGRAPHIC INFORMATION - REVENUE BY PRODUCT PLATFORM (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net revenue by product platform:
Total net revenue	$ 311,552	$ 275,297
Console
Net revenue by product platform:
Total net revenue	254,026	222,574
PC and other
Net revenue by product platform:
Total net revenue	$ 57,526	$ 52,723

SEGMENT AND GEOGRAPHIC INFORM48

SEGMENT AND GEOGRAPHIC INFORMATION - REVENUE BY DISTRIBUTION CHANNEL (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Net revenue by distribution channel:
Total net revenue	$ 311,552	$ 275,297
Digital online
Net revenue by distribution channel:
Total net revenue	172,078	153,985
Physical retail and other
Net revenue by distribution channel:
Total net revenue	$ 139,474	$ 121,312

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - LEGAL AND OTHER PROCEEDINGS (Details) $ in Thousands	Apr. 12, 2016USD ($)
Legal and Other Proceedings
Damages claimed	$ 150,000