1. AUTOMOTIVE BEAUTY COMMERCIAL TECHNOLOGY CONSUMER TECHNOLOGY ENTERTAINMENT FASHION FOOD & BEVERAGE FOODSERVICE HOME OFFICE SUPPLIES SOFTWARE SPORTS TOYS WIRELESS Top Gaming Trends New York Games Conference 2008 Copyright 2008. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.

2. Proprietary and Confidential 2 U.S. Dollar Sales (In Billions) Source: The NPD Group / Retail Tracking Service The Video Game Industry Has Shown Tremendous Growth $10.8B$10.6B $11.4B $13.4B $18.8B + 40% YoY Δ -7% 54% 34% 51%

3. Proprietary and Confidential 3 U.S. Dollar Sales (In Billions) Source: The NPD Group / Retail Tracking Service The Industry Is Poised For Tremendous Growth In 2008 $5.4B $6.8B +28 % YoY Δ -27% 20% 43% 24%

4. Proprietary and Confidential 4 Who Is Playing Games? Who, What, Where, When, And Why When Will Mobile Gaming Take Off? What Is The Top Growth Area Of The Industry? Where Do Games Fit Into The Entertainment Landscape? Why Do People Say The PC Games Market Is Dying?

5. Proprietary and Confidential 5 Everyone Is Playing Games % Of U.S. Population That Play Games Source: The NPD Group / Gamer Segmentation 2008 Topical 59% Of People In The United States Play Games Who?

6. Proprietary and Confidential 6 Women Love Mario! Nintendo Platforms: 60% Of Revenue U.S. Total Video Games Dollar Share Female As Recipient, 12 Months Ending 3/08 Source: The NPD Group / Consumer Tracking Service Who?

7. Proprietary and Confidential 7 Who, What, Where, When, And Why What Is The Top Growth Area Of The Industry?

8. Proprietary and Confidential 8 The Music Genre Has Exploded Source: The NPD Group / Retail Tracking Service YTD 2008 +264% Units +375% Dollars What?

9. Proprietary and Confidential 9 Beyond Guitar Hero and Rock Band YTD 2008 +112% Units +126% Dollars Source: The NPD Group / Retail Tracking Service What?

10. Proprietary and Confidential 10 Who, What, Where, When, And Why Where Do Games Fit Into The Entertainment Landscape?

11. Proprietary and Confidential 11 $1 Of Every $4 Spent On Entertainment Is On Video Games In The Chart:  DVD Purchase And Rental Includes Movie & TV Show DVD Purchase  Music (Recorded) Includes Music CD, Music DVD, Digital Downloads, Ringtones, Tracks For The Cell Phone  Video Games Includes Game Discs & Downloads Source: The NPD Group / Entertainment Trends In America Where?

12. Proprietary and Confidential 12 Gaming Has Room To Grow Music, Online, And TV Fully Penetrated There Is Still Upside For Gaming (Reach And Frequency) Source: The NPD Group / Entertainment Trends In America Where?

13. Proprietary and Confidential 13 Gaming Has Room To Grow Music, Online, And TV Fully Penetrated There Is Still Upside For Gaming (Reach And Frequency) Source: The NPD Group / Entertainment Trends In America Where?

14. Proprietary and Confidential 14 Who, What, Where, When, And Why When Will Mobile Gaming Take Off?

15. Proprietary and Confidential 15 The iPhone May Be The Key Play Games Source: The NPD Group / Smartphone Fast Check Premium When?

16. Proprietary and Confidential 16 One In Five Smartphone Owners Use A Portable Gaming Device 21% Of Smartphone Owners Also Own A Portable Gaming Device Source: The NPD Group / Smartphone Fast Check Premium When?

17. Proprietary and Confidential 17 Who, What, Where, When, And Why Why Do People Say The PC Games Market Is Dying?

18. Proprietary and Confidential 18 YTD 2008 -27% Dollars Myth: The PC Games Market Is Dying… The Area-51®: Quad Core Flagship PC Retail Software Dollar Sales In Billions Source: The NPD Group / Retail Tracking Service Subscriptions Digital Downloads Downloadable Content (Micro-Transactions) Additional PC Games Revenue Why?

19. Proprietary and Confidential 19 PC Dollar Sales in Billions (2007) Subscriptions Are BIGGER Than Retail Why? $0.8$0.9 $0.8 $0.2 $0.7 Website Subscription $ MMOG / PC Subscription $ Source: The NPD Group / Retail Tracking Service; The NPD Group / Games Subscription Tracker Q4’07

20. Proprietary and Confidential 20 Who Is Playing Games? Who, What, Where, When, And Why When Will Mobile Gaming Take Off? What Is The Top Growth Area Of The Industry? Where Do Games Fit Into The Entertainment Landscape? Why Do People Say The PC Games Market Is Dying?

21. Proprietary and Confidential 21 Want To Know More? Email: michael_klotz@npd.com