NOTE 6. PRODUCT DEVELOPMENT COSTS, NET The Company’s capitalized product development costs for the nine months ended September 30, 2011 were as follows (amounts in thousands): Product development costs, net - December 31, 2010 | | $ | 5,319 | | New product development costs incurred (includes $1.1 million for digital games) | | | 2,917 | | Write-off of product development costs (includes $575,000 for digital games) | | | (2,635 | ) | Amortization of product development costs | | | (3,015 | ) | Product development costs, net – September 30, 2011 (includes $1.6 million for digital games) | | $ | 2,586 | |
Amortization of product development costs for the three months ended September 30, 2011 and September 30, 2010 was approximately $473,000 and $1.1 million, respectively. Amortization of product development costs for the nine months ended September 30, 2011 and September 30, 2010 was approximately $3.0 million and $2.7 million, respectively. For the nine months ended September 30, 2011, write-off of product development costs consisted of approximately $2.3 million written off to research and development expense, approximately $272,000 written off to cost of goods sold, and approximately $100,000 written off
to selling and marketing expense. |