Table:
|  | For the Years |  | Ended December 31, |  |
| --- | --- | --- | --- | --- |
|  | 2019 |  | 2018(1) |  |
| Net revenues |  |  |  |  |
| Product sales | $1,975 | 30% | $2,255 | 30% |
| Subscription, licensing, and other revenues | 4,514 | 70 | 5,245 | 70 |
| Total net revenues | 6,489 | 100 | 7,500 | 100 |
| Costs and expenses |  |  |  |  |
| Cost of revenues—product sales: |  |  |  |  |
| Product costs | 656 | 33 | 719 | 32 |
| Software royalties, amortization, and intellectual property licenses | 240 | 12 | 371 | 16 |
| Cost of revenues—subscription, licensing, and other |  |  |  |  |
| Game operations and distribution costs | 965 | 21 | 1,028 | 20 |
| Software royalties, amortization, and intellectual property licenses | 233 | 5 | 399 | 8 |
| Product development | 998 | 15 | 1,101 | 15 |
| Sales and marketing | 926 | 14 | 1,062 | 14 |
| General and administrative | 732 | 11 | 822 | 11 |
| Restructuring and related costs | 132 | 2 | 10 | — |
| Total costs and expenses | 4,882 | 75 | 5,512 | 73 |
| Operating income | 1,607 | 25 | 1,988 | 27 |
| Interest and other expense (income), net | (26) | — | 71 | 1 |
| Loss on extinguishment of debt (2) | — | — | 40 | 1 |
| Income before income tax expense | 1,633 | 25 | 1,877 | 25 |
| Income tax expense | 130 | 2 | 29 | — |
| Net income | $1,503 | 23% | $1,848 | 25% |
Paragraphs:
Consolidated Statements of Operations Data
The following table sets forth consolidated statements of operations data for the periods indicated (amounts in millions) and as a percentage of total net revenues, except for cost of revenues, which are presented as a percentage of associated revenues:
(1) During the three months ended March 31, 2019, we identified an amount which should have been recorded in the three months and year ended December 31, 2018 to reduce income tax expense by $35 million. Our statement of operations for the year ended December 31, 2018, as presented above, has been revised to reflect the correction. See further discussion in Note 2 of the notes to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K.
(2) Represents the loss on extinguishment of debt we recognized in connection with our debt financing activities during the year ended December 31, 2018. The loss on extinguishment is comprised of a $25 million premium payment and a $15 million write-off of unamortized discount and deferred financing costs.
Question:
What is the percentage change in product costs between 2018 and 2019?
Answer: (656-719)/719 = -8.76