Avista
Video Game Briefing Partners
Highlights:
• Market Cap for all public companies in global game sector is $92.6 billion; a drop of 8% since the October Newsletter
• Over $10.5 billion of M&A deals in global sector (LTM)
• Over $3.3 billion raised in global sector (LTM)
Game Index Performance by sub-sector (LTM)
The Game Distributor/Accessory Index is the best performing game sector index at -42%
120.0
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
27/11/2007 27/01/2008 27/03/2008 27/05/2008 27/07/2008 27/09/2008 27/11/2008
Game Retailers Index Online Game Index Mobile Game Index
PC/Console Game Index Game Distributor/Accessory Index S&P 500 Index
Note: the companies making up each index are those listed in the corresponding comps in the following pages. The indexes are based on a weighted market cap and are rebased to 100 at the start.
November 2008 Source: Capital IQ, Company Filings, Brokers & Press 1
Avista
Video Game Briefing Partners
Game Index Performance by region (LTM)
The Asia Game Index is the best performing regional game index at -45%
130.0
120.0
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
11/27/07 12/27/07 1/27/08 2/27/08 3/27/08 4/27/08 5/27/08 6/27/08 7/27/08 8/27/08 9/27/08 10/27/08
Asia Game Index North America Game Index Europe Game index S&P 500 Index
November 2008 Source: Capital IQ, Company Filings, Brokers & Press 2
Avista
Video Game Briefing Partners
Stock Comps (by sector & ranked by enterprise value):
Stock Price Market Enterprise 3 4 5 6
(local currency) % of LTM Cap Value EV/Revenue EV/EBITDA P/E Share price movement(1)
11/29/08 High Low (USD m) (USD m) CY 2008 CY 2009 CY 2010 CY 2008 CY 2009 CY 2010 CY 2008 CY 2009 CY 2010 L1M L3M L6M LTM
PC/Console Game Publishers/ Developers
Nintendo Co. Ltd. 245.23 41.3 120.4 39,746.0 27,528.0 1.4x 1.4x 1.5x 4.4x 4.1x 4.2x 15.9x 10.6x 10.6x 3% -44% -52% -55%
Activision Blizzard, Inc. 9.23 60.7 126.9 12,226.6 12,559.4 3.0x 2.5x 2.3x 119.6x 12.3x NA 26.8x 17.0x 14.8x -7% -35% NA NA
Electronic Arts Inc. 15.04 31.6 109.9 6,116.0 3,651.0 0.8x 0.7x 0.7x 6.5x 3.5x 3.0x 22.8x 10.9x 8.5x -24% -60% -61% -67%
Konami Corp. 17.88 50.2 141.8 3,115.5 2,980.5 0.9x 0.9x 0.9x 6.0x 4.8x 4.5x 12.3x 11.9x 11.9x 37% -35% -47% -36%
Square Enix Holdings Co., Ltd. 22.52 71.6 125.3 3,290.4 2,528.4 1.5x 1.4x 1.3x 9.4x 5.6x 5.2x 20.7x 17.1x 15.5x 18% -23% -17% -27%
Sega Sammy Holdings Inc. 7.63 55.1 144.4 2,434.6 2,004.4 1.1x 1.0x 1.0x 5.9x 4.8x 4.2x 14.1x 12.0x 11.1x 40% -17% -12% -33%
UBI Soft Entertainment SA 18.09 51.7 104.1 2,150.3 1,860.2 1.6x 1.4x 1.3x 4.7x 4.2x 4.3x 18.6x 16.0x 14.6x -13% -40% -42% -33%
Namco Bandai Holdings Inc. 7.86 50.6 120.0 2,452.6 1,425.6 0.3x 0.3x 0.3x 2.4x 2.7x 2.5x 13.5x 15.2x 12.6x 4% -27% -29% -46%
Capcom Co. Ltd. 16.05 53.5 119.6 1,255.4 1,101.5 0.4x 0.4x 0.4x 2.3x 3.8x 3.0x 4.5x 8.6x 6.4x -15% -47% -53% -44%
Koei Co. Ltd. 8.55 47.6 108.5 743.3 652.9 2.1x 1.9x 1.9x 8.2x 7.6x 7.7x 12.1x 10.7x 10.2x 9% -54% -58% -28%
Take-Two Interactive Software Inc. 9.59 43.5 120.3 942.9 604.2 0.4x 0.4x 0.4x 3.8x 3.6x NA NM 24.8x 18.3x -1% -54% -58% -28%
Midway Games Inc. 0.30 8.5 152.0 35.0 220.5 1.0x 0.9x NA NA NA NA NM NM NA -44% -84% -84% -86%
Infogrames Entertainment SA 6.15 41.0 107.9 220.0 216.5 0.5x 0.3x 0.2x 4.8x 2.5x NA NM 213.5x 16.4x -19% -55% -49% -58%
Soft-World International Corp. 1.84 65.1 136.0 288.4 182.9 1.1x 1.0x 0.9x 16.8x 13.5x 11.1x 8.9x 7.2x 6.6x 4% -24% -40% -20%
THQ Inc. 3.74 15.8 141.9 317.9 158.7 0.2x 0.1x 0.1x NA 2.6x 2.5x NM 15.0x 7.4x -45% -73% -80% -83%
Tecmo Ltd. 7.36 50.5 153.3 226.3 121.0 0.9x NA NA NA NA NA 83.8x NA NA 17% 37% -27% -46%
SouthPeak Interactive Corp. 1.78 75.0 180.0 81.1 82.9 NA NA NA NA NA NA NA NA NA 0% -13% NA NA
D3 Inc. 422.24 14.7 101.0 11.2 56.4 0.4x NA NA NA NA NA NA NA NA -17% -56% -77% -78%
SCI Entertainment Group plc 0.22 7.7 102.8 74.5 35.0 0.2x 0.2x 0.1x NA 1.2x 0.4x NM NM 262.5x 1% -44% -65% -92%
Jowood Productions Software AG 7.90 45.7 101.3 27.4 34.6 NA NA NA NA NA NA NA NA NA 8% -30% -45% -48%
Mindscape SAS 11.94 67.5 111.6 43.2 32.5 0.5x 0.4x 0.3x 2.9x 2.0x 1.4x 8.4x 6.1x 4.6x 4% -24% -29% NA
Yuke's Co., Ltd. 2.52 54.3 170.8 34.5 30.7 0.5x NA NA NA NA NA 6.0x NA NA 4% -8% -40% -44%
Tose Co. Ltd. 5.18 47.1 116.8 50.3 29.1 0.5x 0.4x NA 2.8x NA NA 12.3x 10.3x NA 7% -27% -35% -50%
City Interactive sp. z o.o. 2.01 67.2 105.7 31.9 28.9 NA NA NA NA NA NA NA NA NA 5% -10% -20% NA
CDV Software Entertainment AG 2.66 15.3 147.8 6.4 16.2 NA NA NA NA NA NA NA NA NA -54% -75% -83% -84%
Softstar Entertainment Inc. 0.23 43.2 103.7 7.4 16.0 NA NA NA NA NA NA NA NA NA -6% -21% -30% -51%
Playlogic Entertainment Inc. 0.18 15.3 153.3 10.7 15.2 NA NA NA NA NA NA NA NA NA -45% -53% -74% -64%
Nippon Ichi Software Inc 456.18 16.8 145.8 12.2 13.8 0.5x NA NA NA NA NA 3.6x NA NA 49% -24% -61% -78%
Silverstar Holdings Ltd. 0.16 8.2 132.7 4.0 12.0 NA NA NA NA NA NA NA NA NA 12% -71% -73% -91%
Eighting Co., Ltd. 413.96 31.8 166.7 28.3 11.8 0.5x NA NA NA NA NA 8.7x NA NA -3% -30% -49% -61%
Interplay Entertainment Corp. 0.07 37.8 150.0 9.5 10.0 NA NA NA NA NA NA NA NA NA -10% -36% -49% 38%
Majesco Entertainment Co. 0.43 33.5 101.9 16.6 9.4 0.1x NA NA NA NA NA 18.0x NA NA -5% -35% -55% -49%
Nihon Falcom Corp 168.07 50.4 111.7 21.7 7.8 0.6x NA NA NA NA NA 15.3x NA NA -2% -27% -37% -44%
Starbreeze AB 0.03 68.3 121.8 12.9 6.7 NA NA NA NA NA NA NA NA NA 8% -22% -33% -10%
Conspiracy Entertainment Holdings Inc. 0.02 25.0 150.0 1