1. Broadband and the Video Game Industry: A Partnership for Future Growth Dallas, Texas April 28, 2009 Broadband Properties Summit Michael D. Gallagher President and CEO Entertainment Software Association

2. An Increasingly Interconnected Relationship In less than a decade, video games have embraced the new opportunities that broadband affords  Sony shipped PlayStation 2 in 2000 without a built-in network adaptor  When Microsoft launched Xbox Live in 2002, the service supported only five exclusive games

3. An Increasingly Interconnected Relationship  Today, microtransactions, downloadable content, and online game play reshape the industry on a daily basis  500 million online EA Sports games have been played since its launch in June, 2008—equates to 2.2 million EA sports games are played each day

4. Video Games Enter a New Era Opinion leaders increasingly appreciate the industry’s contributions across society  Overall computer and video game sales climbed to $22 billion in 2008  Over 400 academic institutions around the world offer video game programs or courses  An ESA survey found that 70% of businesses currently use games to train employees

5. An Expanded Consumer Base The industry has maintained traditional gamers’ support while reaching out to new demographics  The average gamer is 35 years old  Women represent 40% of gamers  One out of every four gamers is over 50

6. Games Tackle Serious Issues Despite roots in entertainment, video games today serve serious purposes for many organizations  Broadband enabled Stanford University to launch the Folding@Home project to better understand protein folding  The United Nations created Food Force to educate children about world hunger  The University of Southern California modified Virtual Iraq to treat post-traumatic stress disorder

7. An ESA survey found that 70% of businesses now train employees through video games  78% of organizations not using the technology today likely will offer it within the next five years  More than 75% of companies plan to expand their usage within the next three to five years More than 200 academic institutions across the U.S. offer video game programs or courses Video Games Mean Business

8. A New Outlet for Creativity Video games have become a preferred medium among many artists for expressing their talents  Game developer Ninja Theory hired award-winning composer Nitin Sawhney to produce a soundtrack for Heavenly Sword  Into the Pixel, a 16-piece video game art exhibit, appeared at the 2009 South by Southwest festival  Grand Theft Auto IV received widespread critical acclaim for the game’s artistic value

9. A New Source of Community Online game play has allowed the industry’s diverse consumer base to feel connected  According to the Pew Internet & American Life Project, 76% of teens play video games with other people  Sony’s PlayStation Network maintains more than 20 million registered user accounts  Microsoft’s Xbox Live users watched 25 million hours of Netflix movies and TV programs during the partnership’s first three months

10. An Economic Engine During Stagnant Times Despite the financial crisis, overall computer and video game sales climbed to $22 billion in 2008  Annual software sales grew to a record $11.7 billion last year  December, 2008 sales exceeded $5 billion  Analysts expect software and advertising sales worldwide to top $68 billion by 2012  North American gamers spent $1.9 billion downloading games last year

11. Our Path Forward As our relationship evolves, we must keep our focus on our consumers’ needs  Expand opportunities for consumers to download and play games from a wide range of legitimate online services  Seek government policies at the local, state and federal levels, including tax incentives, that encourage more affordable, accessible and faster high-speed Internet service

12. Our Path Forward  Advocate for stronger intellectual property rights, with attention devoted in particular toward countries listed on the Special 301 Report  Intellectual property is a leading reason why people adopt broadband and that boost to the ecosystem requires protection

13. Broadband and the Video Game Industry: A Partnership for Future Growth Dallas, Texas April 28, 2009 Broadband Properties Summit Michael D. Gallagher President and CEO Entertainment Software Association