1. Digital Interactive Symposium: Edinburgh Business Models in Virtual Worlds 27 August 2010 Andy Moseby, Corporate Partner

2. Recent activity ?

3. Lazard capital markets’ 2010 forecasts

4. Valuations Valuation Quantitative: Trading comparables Transaction comparables Discounted cashflow analysis LBO analysis Qualitative : Proprietary technology Point of differentiation Breadth of service offering Market positioning Strength of management

5. Valuations: ability to monetise Valuation Quantitative: Trading comparables Transaction comparables Discounted cashflow analysis LBO analysis Qualitative : Proprietary technology Point of differentiation Breadth of service offering Market positioning Strength of management

6. Evolution of revenue streams

7. Evolution of online revenue streams Retail – “one off” Boxed product DLC Digital distribution / Apps etc Other Data mining Gambling Back Offline Merchandise Associated products Virtual Transactions Virtual goods P2P trading UGC Inviting Friends Continued Payments Subscription / VIP “Lite” versions Episodic gaming PC baangs Advertising In-game Around game Sponsorship / games as ads

8. Evolution of online revenue streams Retail – “one off” Boxed product DLC Digital distribution / Apps etc Other Data mining Gambling Back Offline Merchandise Associated products Virtual Transactions Virtual goods P2P trading UGC Inviting Friends Continued Payments Subscription / VIP “Lite” versions Episodic gaming PC baangs Advertising In-game Around game Sponsorship / games as ads

9. Evolution of online revenue streams Retail – “one off” Boxed product DLC Digital distribution / Apps etc Other Data mining Gambling Back Offline Merchandise Associated products Virtual Transactions Virtual goods P2P trading UGC Inviting Friends Continued Payments Subscription / VIP “Lite” versions Episodic gaming PC baangs Advertising In-game Around game Sponsorship / games as ads

10. Evolution of online revenue streams Retail – “one off” Boxed product DLC Digital distribution / Apps etc Other Data mining Gambling Back Offline Merchandise Associated products Virtual Transactions Virtual goods P2P trading UGC Inviting Friends Continued Payments Subscription / VIP “Lite” versions Episodic gaming PC baangs Advertising In-game Around game Sponsorship / games as ads

11. Evolution of online revenue streams Retail – “one off” Boxed product DLC Digital distribution / Apps etc Other Data mining Gambling Back Offline Merchandise Associated products Virtual Transactions Virtual goods P2P trading UGC Inviting Friends Continued Payments Subscription / VIP “Lite” versions Episodic gaming PC baangs Advertising In-game Around game Sponsorship / games as ads

12. Lazard capital markets’ 2010 forecasts

13. Revenue model changes game design

16. All Image Credits: WikiMedia / Techcrunch / Wadsworth.com

17. Feel the width… ActivisionEANintendoSonyTHQTake-Two Console (retail) Console (online) PC (retail & digi) Mobile Hardcore MMOG Casual MMOG/VW Casual online Social network = Major investment = Some investment = Little/No investment Source: Games Investor Consulting Limited

18. Feel the width… DisneyViacom TimeWarner News Corp NBCUBertels Console (retail) Console (online) PC (retail & digi) Mobile Hardcore MMOG Casual MMOG/VW Casual online Social network = Major investment = Some investment = Little/No investment Source: Games Investor Consulting Limited

19. Contact details Andy Moseby Corporate Partner Kemp Little LLP andy.moseby@kemplittle.com Tel. +44 (0) 20 7710 1650