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Steve Allison

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They have a bunch of good games but no blockbuster.

Along with our strategy to create immersive, engaging content, we believe that the technology to allow for dynamic, in-game advertising will add a sense of cultural relevance and context for the mass-market audience.

Ninety percent of Midway's customers are 18- to 35-year-old males.

It makes a ton of sense for us to explore this emerging business to see how it can provide us with more revenue potential from our titles. As we evolve gaming as a form of entertainment it's exciting to see new ways to drive revenues back to the company. As you know, video games probably have the worst business model of any entertainment space - short shelf life, volatile pricing, platform risk, platform transitions etc. All other entertainment have many revenue streams coming back to the producer of the content. Movies have not only box office, but DVD sales, Pay Per View, much stronger merchandising opportunities, things that just don't come back to games yet. Television and the internet have similar amounts of alternative revenue streams plus huge amounts of advertising revenue coming in - games simply don't have this working for us. It's retail and that's it. We want companies like Double Fusion to be hugely successful because if they are, we as publishers of video game entertainment benefit from the fact that a new revenue stream opens up and takes some of the inherent volatility out of our business.

One of Midway's core in-game advertising strategies is to infuse our games with cultural context through the integration of static in-game product placements. We believe static promotions in conjunction with dynamic advertising will represent an attractive revenue opportunity for Midway. Sarah is arguably one of our industry's most experienced professionals in this emerging field, and we anticipate that she will manage the process for static ads as well as dynamic in-game ads with Double Fusion in an effort to maximize incremental revenue from our top titles.

In 2006, Midway will begin our strong support of the PSP handheld market by bringing some of our top franchises to the system.

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