<PAGE>   1


                                  EXHIBIT 11.0

                      SIERRA ON-LINE, INC. AND SUBSIDIARIES
                 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS

<TABLE>
<CAPTION>
                                                                                         THREE MONTHS ENDED                
                                                                               (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)    
                                                                                                                           
                                                                            SEPTEMBER 30, 1995           SEPTEMBER 30, 1994
                                                                            ------------------           ------------------
                                                                                                                           
<S>                                                                         <C>                          <C>            
Weighted average number of common shares outstanding.....................           18,331                       16,146    
Common share equivalents:                                                                                                  
    Dilutive effect of stock options.....................................            1,381                           --    
                                                                               -----------                  -----------    
       Total average common and common equivalent shares.................           19,712                       16,146    
                                                                               ===========                  ===========    
                                                                                                                           
Net income (loss)........................................................      $     3,257                  $      (850)   
                                                                               ===========                  ===========    
                                                                                                                           
Net income (loss) per common and common equivalent share.................      $      0.17                  $    (0.05)    
                                                                               ===========                  ==========     
</TABLE>



<TABLE>
<CAPTION>
                                                                                          SIX MONTHS ENDED                 
                                                                               (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)    
                                                                                                                           
                                                                            SEPTEMBER 30, 1995           SEPTEMBER 30, 1994
                                                                            ------------------           ------------------
                                                                                                                           
<S>                                                                         <C>                          <C>       
Weighted average number of common shares outstanding.....................           17,988                       16,136    
Common share equivalents:                                                                                                  
    Dilutive effect of stock options.....................................            1,251                           --    
                                                                               -----------                  -----------    
       Total average common and common equivalent shares.................           19,239                       16,136    
                                                                               ===========                  ===========    
                                                                                                                           
Net income (loss)........................................................      $     3,289                  $    (4,995)   
                                                                               ===========                  ===========    
                                                                                                                           
Net income (loss) per common and common equivalent share.................      $      0.17                  $    (0.31)    
                                                                               ===========                  ==========     
</TABLE>
                                                                            




















                                       12