Video games are captivating consumers’ attention and capturing their wallets. The average time spent viewing advertising with a video title is 110 hours versus 20 hours for football. Also, video games retail for between $40 and $60 and video games are played for an average of six months. Video game-related revenues are positioned to continue growing at torrential rates. For instance:

• Video games generated $13.9 billion in revenues in 2003, significantly more than the $9.2 billion generated by movie studios.

• Some video games skyrocket right out of the starting blocks: Halo 2 sold more than $100 million on its first day of release.

• Casual games have grown from almost nothing in 2002, to well over $600 million in 2004 in the U.S. alone. Industry experts anticipate that the market will reach over $2 billion by 2008. 

• The worldwide market for mobile games is expected to reach $11.2 billion by 2010, up from $2.6 billion in 2005. 

• However, the anticipation of a new generation of hardware systems such as the Xbox 360 and Sony's PlayStation 3 threatened to slow sales of video games.  For instance, NPD Group reported that sales of video games at U.S. retailers declined 18% in November of 2005 compared to November of 2004.

This conference is designed to help you position your company and portfolio for optimum benefit in this rapidly growing sector of the economy. Listen to industry insiders discuss the most attractive segments of the video economy. Learn which business models yield sustainability, the greatest stickiness, highest barriers to entry and maximum profitability. 

Determine how consumer shifts, technological innovation and legislation will impact the merits of competing and investing in video games, wireless gaming, casual gaming and advergaming.

Video Games Are Attracting More Demographic Segments and Are Utilized for a Growing Array of Applications

The popularity of video games has reached levels of near hysteria. Not only did last year’s release of Microsoft’s Halo 2 clobber the movie release of The Incredibles by achieving $125 million in revenues in its first weekend compared to the movie’s $70 million during the same weekend. Waves of Americans were swept up in "Halo flu". Children avoided school and employees called in sick.

Video games are now more than a source of quick thrills for boys and young men. In fact, women 35 years of age and older are the largest gamer demographic. Moreover, video game technology is being harnessed for the most serious of purposes such as preparing soldiers for urban combat. Israeli researchers are using video games to investigate future treatments for memory disorders such as Alzheimer’s disease. 

Savvy industry executives must be prepared to adopt the latest technologies, must consider tapping Hollywood’s star power, must recognize new revenue sources such as advergaming and must embrace new delivery platforms such as wireless devices.

The financial community is beginning to take notice of the promise of video technology. Successful investors will have to discern the most attractive business models and distill the elements that cause a video game to reach celebrity status.

Join us for a unique conference that illuminates the business and investment decisions that lie behind the growing euphoria of video gaming.

I look forward to meeting you on February 16, 2006.

I remain,

David Wanetick
Managing Director
Gateway Reports & The Wall Street Transcript