As wow gold to buy a result, we continue to see a shift to the high margin digital side of our business, which yields faster growth, better returns on invested capital and reduces our exposure to the volatility that has historically characterized video game companies. In fact, this is the first quarter that our sales from online channels outweighed our retail sales.
Our continued successful results reaffirm our strategy. Clearly, leading franchises are strengthening. However, this only happens where there is great innovation, and StarCraft II is certainly confirmation of this. Today, players and retailers alike are more selective than ever before and are choosing to concentrate their entertainment spending on fewer higher quality experiences. This is a trend not just in video games but across all media, where we continue to see the largest and most successful properties, when superbly executed, gain disproportionate share of audience attention.
Online technologies like voice over IP and video over IP, as well as new motion sensing technologies like Move and Kinect, are offering players exciting new ways to interact. These new experiences are more immersive than prior technologies, and games that capitalize on these innovations are optimally positioned to attract much, much larger audiences.
With gaming becoming one of the most popular uses of the Internet, more gamers in far broader demographics than we have ever seen before are emerging as new consumers. This will drive growth and will reward companies like ours that have deep expertise and understanding in making surely interactive entertainment.
As in home broadband penetration increases globally, Internet connected televisions become a reality and the ubiquity and capability of portable devices is rising. We should continue to see dramatic extensions in the reach and functionality of today's leading entertainment content as a result. Game quality will obviously be crucial for long term success, and for us, quality begins with focus and talent.
Our decision last February to organize a separate business unit focused on Call of Duty was an example of a recognition of the need to dedicate the best resources towards the tens of millions of players who are playing Call of Duty games.
In Call of Duty: Black Ops, which is due out this November, we are raising the bar to extraordinary levels. The game is one of the best we have ever created. There isn't anything quite like it. The features in multiplayer technology, for example, will make this latest Call of Duty experience easier to jump in and enjoyed than ever before, while at the same time offering a personalized depth of experience for our core consumers.
The value of having the most talented people and the deepest resources applied against the most important projects has never been higher. We believe our competitors, and there are many, are beginning to realize the gaps that they must bridge. Within the last year, and even the past few weeks, our competitors and industry partners have been moving to try and reposition themselves in light of these new requirements for success.
There is an industry wide urgency to invest in online games and game companies. We, fortunately, saw the changes taking place a number of years ago, and as a result, our competitive lead is significant. Our history of investing in our people, our brand, our platforms and our communities has allowed us to develop unmatched knowledge and execution capabilities in this area as well as the financial strength to invest prudently in key resources. As a result, we are uniquely positioned to continue offering immediate online experiences that deliver incredible entertainment to gamers, while providing superior returns to our shareholders.
I've often applied the metaphor the broad and deep moats that surround our core franchises. The convergence of changing consumer demand, new technologies offering more immersive and sustainable engagement with entertainment and our methodical alignment of the absolute best talent, best assets and the recognition of our obligations to our shareholders have only made these moats deeper and more difficult for many of our competitors to navigate. At the same time, the core franchises our moats protect are also growing and becoming more attractive through our audiences. The combination of technical capability and tangible benefits Blizzard is delivering to its StarCraft audience represents the next evolution in the arenas of gaming, social networking, online commerce and customer service.
We continue to follow those three basic tenets to guide our business that we've talked about many times in the past. Our commitment to create the most exciting and innovative games for gamers, operating a best in class independent studio model and publishing organization that inspires creativity and fosters innovation and focus on providing superior shareholder returns for the long term. In fact, over the last 10 years, shareholder value has grown at a compounded annual rate of over 30%. Our continued focus on the largest and most profitable opportunity provides us not only the ability to deliver the work of our talented teams to the broadest possible audiences but also allows for greater predictability in our multi year planning and reflect our emphasis on shareholder value creation.
Recognizing how important inspired creativity is for continuing our success, we have recently added Eric Hirschberg to our management team as CEO of Activision Publishing. Eric has a deep understanding of the video game business, subscription based businesses, mobile devices and an incredibly deep understanding of how to convert consumer insight into inspired, creative content. In his new role, he will oversee Activision Publishing's operational management, including its studios, product development functions and consumer marketing activities reporting directly to Tom.
Today, we're uniquely positioned to take advantage of the growing interest in gaming and the trends that are resulting in the shift in the way broad audiences spend their leisure time. And as a result, we have never been better positioned to capitalize on the growth and opportunity that exists in interactive entertainment.
Thomas will now share with you the results of another quarter of profitable success and our plans for the balance of the year. Thomas?
Thank you, Bobby. Today, I'll begin with a recap of the June quarter results followed by a review of our outlook for the third quarter and calendar 2010 and will close with a review of the Activision business before handing it over to Mike Morhaime, who will discuss Blizzard's performance and plans.
For your reference, in our press release, there are schedules which provide non GAAP comparable by business segment, and this will be the numbers I'll refer to unless otherwise noted. Also please refer to our earnings release for a GAAP to non GAAP reconciliation.
For the second quarter, GAAP net revenues were $967 million, GAAP operating income was $300 million and earnings per share was $0.17, $0.06 ahead of our prior outlook primarily due to lower revenue deferrals and equity expense. On a non GAAP basis, June quarter net revenues were $683 million, non GAAP operating income was $101 million and non GAAP EPS came in at $0.06, $0.02 ahead of our prior outlook.
The quarter was driven by Blizzard Entertainment's World of Warcraft and Activision's Call of Duty. In addition, we also released Shrek, Singularity, Blur and Transformers. As expected, non GAAP revenues and earnings were down as of the prior year due to a smaller release slate and continued weakness at retail in the Casual and Music genres. As compared to our prior outlook, non GAAP revenues were slightly lower due to the negative impact of foreign exchange and lower sales of our new releases, which were largely offset by the continued momentum of our core franchises Call of Duty and World of Warcraft.
Non GAAP EPS looked higher than our outlook driven by the strength of our core franchises, specifically, by the, strong, continued digital revenue performance over the Call of Duty Map Packs and Blizzard's value added services both of which have helped deliver year to date non GAAP operating margin expansion of 100 basis points.
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