THE GAME FIRST!

BUSINESS VENTURE OPPORTUNITY

EXECUTIVE SUMMARY
Game First is a one stop shop for all video gaming needs. We will be located in the heart of Mississauga, one of the great economies of Ontario. While our location is a major asset, it is our great business plan that will guarantee our success. Game First will offer a wide selection of the latest in video game software, gaming consoles, and video game accessories. We will also provide our clients with the best in video gaming systems coupled with the best environment available so that they may play immediately and peacefully. We are dedicated to providing consistent client satisfaction by rendering excellent service, carrying items that are not nationally available, and providing a warm, pleasant atmosphere at a competitive price. All Game First locations will foster respect for our clients and our community. The timing is right for starting this new venture. Our target market is anyone who has even a remote interest in video gaming. Presently there are several major competitors in the video game retail business that enjoy domination over the market but deal only with video game sales, not video game rentals. With the recent demise of a large national rental outlet, there is a huge gap in the gaming retail business that even mail-in services cannot hope to fill. We have conducted polls across the community and have received an overwhelming response highlighting the immediate need for a more comprehensive resource on video game retail and rentals in our target demographics. Game First! will offer more solutions to the community not previously provided by any of our competitors. With over 18 years of experience in the video gaming industry and culture, Shannon Iyer has the skills necessary to make this venture extremely successful and profitable. To achieve our objectives, Game First! is seeking a start up loan or investment. This loan will be paid back from the cash flow of the business within ten years, collateralized by the assets of the company and backed by personal integrity, experience, and a contractual guarantee from the owner(s). This loan will be used to purchase inventory and equipment, rental space, increase working capital, and assist in startup costs. If an investment or partnership, this venture will bring in continuous and tremendous profit and success. 1.1 OBJECTIVES

The objectives for Game First! are outlined below: 1. To create a retail and rental based company whose goal is to exceed customers expectations. 2. Sales increase to over a quarter million dollars by the end of the second year and increase modestly in the third year. 3. To increase the number of video game renters and purchasers by at least 20% per year through superior performance, optimal marketing and work of mouth referrals. 4. Have a customer return rate of 90% by the end of the first year. 5. Become an established community destination by the end of the first year.

1.2

MISSION

To provide the North Americas and possibly Europe with quality brand name products, latest in video game software, top of the line systems with reliable networks to play on, and unparalleled customer service through the application of the principles of 6 Sigma and various other lean management skills to earn a fair profit for our employee-owners and stakeholders by embracing sound and ethical business practices. 1.3 KEYS TO SUCCESS Superior Customer Service: to provide reliable, high quality service and products with a new and unique approach to the gaming experience. Environment: provide a clean, friendly and comfortable environment furnished with state of the art gaming equipment in order to deliver the best in professional and trusting service. Convenience: to offer a wide selection of video gaming products and accessories while providing an arcade style networked approach to rentals in one environment; including imports and limited editions, video game tournaments, previews and demos, prizes and in-store frequent buyers or gamers plan that will award frequent purchases or rentals. When finalized, an online retail and game plan tracker will be made available to the traffic of the internet. Location: to provide an easily accessible location for customer convenience and optimal demographics. Reputation: credibility, integrity and 100% dedication from 18+ years of experience in the video gaming industry.

COMPANY SUMMARY
Game First! will sell and rent video game software, systems and accessories to the North American community. It will also offer imports and limited editions, video game tournaments, previews and demos, prizes and in-store frequent buyers or gamers plan that will award frequent purchases or rentals. What will set Game First! apart from the competition is providing our customers all the aforementioned in one convenient location, our dedication to excellent customer service, and our new and unique approach to the video gaming experience. 2.1 COMPANY OWNERSHIP

Game First! will be created as a Canadian Incorporated Company based in Ontario, and privately owned by Shannon Iyer and an investor. Shannon has 18+ years experience in video gaming culture, having participated in several tournaments and online communities while continuously studying the ins and outs of the video gaming industry. Shannon is a customer service guru with many years of customer service excellence and some modest retail experience.

2.2

STARTUP SUMMARY

The startup costs are to be financed by the direct owner investment. The cost, expense, and investment details are included in the following tables and chart.
STARTUP FUNDING Startup Expenses to Fund Startup Assets to Fund TOTAL FUNDING REQUIRED $150,000 $60,000 $210,000

Assets Non-cast assets from startup Cash requirements from startup Additional Cash raised Cash Balance on starting date Total assets $20,000 $20,000 $0 $5,000 $40,000

LIABILITIES & CAPITAL Liabilities Current Borrowing Long-tern Liabilities Accounts Payable (Outstanding bills) Other current liabilities (interest free) TOTAL LIABILITIES Capital Planned Investment Shannon Iyer Investor 2 $5,000 $0 $0 $0 $0 $0 $0

Other Additional investment requirement Total Planned Investment Loss at Startup (startup expenses) Total Capital Total Capital and Liabilities Total Funding

$0 $50,000-$100,000 $55,000-$105,000 $30,000-$60,000 $25,000-$45,000 $25,000-$45,000 $155,000-$205,000

STARTUP Requirements Startup Expenses Business License & Legal Stationery etc. Brochures Consultants Insurance Rent Rent Deposit Research & Development Gaming Consoles Gaming Computers Gaming Peripherals Monitors Display Shelving Display for Store advertisements Display Cabinet Main Store Sign $1,200 $200 $400 $0 TBD TBD TBD $0 $4,600 $10,000 $3,600 $14,000 $2,000 $1,000 $1,000 $500

Store signs for windows Installed security system Storage Shelving for Inventory Carpet, Painting, etc. Other Total Startup Expenses

$400 $1,200 $300 $3,000 TBD TBD

STARTUP ASSETS Cash required Startup Inventory Other current assets Lon-term assets TOTAL ASSETS TOTAL REQUIREMENTS $5,000-$10,000 $50,000-$100,000 $0 TBD TBD TBD

PRODUCTS AND SERVICES

For today and in the future, video gaming is a great part of the entertainment market and poised to be a part of a great percentage of the average persons life. Although most people today play video games either at home or at a friends, the arcade revolution that swept the 80s has slowed down, but is far from over. As a result there has been a lapse in the community experience only an arcade center can bring, a lapse hastily trying to be filled by several video game companies. Game First! will provide the North American community with just such an experience a one stop shop for all video gaming needs. Game First! will offer the following products and services with excellent customer service in a friendly, professional, and pleasant environment: New releases and top selling games We will sell new and old top selling games and consoles in various price ranges that are subject to regional deals. Used BUYBACK program We will buy used and in-demand video games according to timeframe and location requirement. These games are meant to restock inventory for the rented aspect of the business. Latest in video game peripherals We will sell video game headsets, gaming computer rigs, and even memorabilia.

Game First! Experiences We will offer an arcade style experience for clients furnished with the latest technology and state of the art internet/LAN connections. Virtual movement stations will be setup for various console moment experiences. These terminals and rooms will be rented by the hour, but with no minimum time requirement. GAMETIME! Frequent buyers & renters programs We will offer programs to entice client purchase of video games and/or rental time. Clients will be able to track their purchases and see if they qualify for extra rental time based on acquirement in a point system. GAMEFACE! Competitions We will host various competitions and events, and can even entertain for social gatherings. GAMECASE Showcases The GAMECASE will be a showroom of sorts, housing the latest in video game technology and comfort displayed right in front of the store. Potential clients passing by will be able to witness a firsthand account of the pleasure a proper gaming atmosphere can bring, as displayed by our participating clients. The GAMECASE showcase rooms will be offered at a discounted rate, on a first come first serve basis.

MARKET ANALYSIS SUMMARY

Game First! will focus on marketing in centralized city and urban areas, including locations near malls, secondary and post secondary schools, and tourist attractions. Our demographics include anyone remotely interested in gaming without commitment and the regular gaming audiences. Market research shows that consumers in Mississauga rely on used games and rentals for their gaming needs. Consumers are hesitant to purchase outright video games due to recent industry saturation, a trend that seems to be continuing as game developers try to dominate the software industry. The following demographics were gathered by various officially cited websites and our own in house surveys.

4.1

MARKET SEGMENTATION

Gamers love gathering. A quick search on the internet will provide numerous results highlighting various social and successful gathering being thrown throughout the past years. The highest attendance rate is among the conventions, with people attending from all over the world just to play together and witness the latest in gaming. Most of these take place in the US, with single notable exceptions in Japan and Germany. Conventions are usually quick three day affairs, with the average gamer waiting in amusement park type lineups albeit quite happily. Massive profits are earned by the events planners, with customers waiting to play and publishers waiting to display. In Canada, gaming conventions are grouped in with other mediums such as comics and toys, thus minimizing the appeal to the average adult. GAMEFIRST! aims to be a seven day a week gamer convention site, catering to all gaming needs in a highly desired environment. We will establish several

relationships with gaming developers and publishers such as MICROSOFT, SONY and NINTENDO. Events such as TOURNAMENTS and COSPLAY participation will foster a daily attendance. We will encourage direct developer participation and play host to their latest in video gaming hardware and software. Additionally, the GAMEGROUPS program will hope to provide special discounts and opportunities to clients that hope to gather on a more frequent basis, with a commitment required in advance. Our potential customers are broken down into three major groupings and our business will aim to satisfy the needs of every one of them. The generalized groupings are differentiated by interest in gaming; faint interest, casual gamer and core gamer. Faint Interest: In our modern times, there will always be an interest in gaming and we will embrace this. This potential client is likely to enjoy only certain genres and will not be interested in owning a gaming machine. This may be due to time constraints or social pressures. GAMEFIRST! will provide a means for the faintly interested to play a casual round of their favorite genre or support their favorite brand. Busy adults or businessmen can gather for quick social events or meets. This demographic will be solely adult oriented, as statistics show that very few adolescents and young adults avoid video games. Casual Gamer: This potential client is the medium of our customer base, and has a lot more dedication to gaming than the previous type. They may own one type of gaming equipment, which they play occasionally out of boredom or with a mutually interested party. Rather than staying current on gaming developments, the casual gamer will only be interested in a game when it is popular, and will purchase and retain only select titles. GAMEFIRST! aims to covert the casual gamer into a core gamer by keeping the client informed of all developments in the gaming industry while providing the necessary excitement and popularity that will garner their attention. GAMEFIRST! will also allow them to venture into other gaming opportunities by promoting a GAMEFIRST! mentality, allowing the client to rent before they decide to purchase outright. Core Gamer: This potential client will embrace the GAMEFIRST! culture. Their dedication to gaming is unmatched, and will likely own most, if not all the gaming hardware they need to play at home. However, home is likely not the conditions they would like to be in, as most gamers crave the attention their skill in gaming deserves. They are ambassadors to the gaming world and our highly prized customer. They will likely participate in all hosted tournaments and promotions. They will likely purchase huge amounts of GAMETIME! to satisfy their desire to play all games. We will provide every opportunity they require to enjoy their visit and ensure their return.

4.2

TARGET MARKET SEGMENT STRATEGY

GAMEFIRST! will focus on catering to these three groupings because they make up the bulk of entertainment consumers in the market. Currently, there are no major arcade style mainstreams

gaming businesses, as most video game businesses are compartmentalized in their services. GAMEFIRST! will be the one stop location for all groupings and will gain its popularity through targeted advertizing and an exceptional business strategy. Our core belief is that all clients will eventually be long term core gamers. GAMEFIRST! will have an aggressive advertizing, which will possibly include: Newspaper and magazine advertisements Hand out flyers to local businesses and residences Radio spots and interviews Internet website and advertisements Yellow Pages

Besides announcing our services and brand to potential clients, GAMEFIRST will provide certain specifically styled promotions and campaigns, including: Tournaments and sponsored competitions Frequent gamer reward systems and other in-house promotions Surprise COSPLAY rewards and other positive atmosphere promotions Group and party discounts Developer catered events and beta testing grounds

After the advertising and promotional campaigns entice the new clients, even more potential clients will be generated through word of mouth referrals and invites. As we will be the only business currently catering to every aspect of video gaming, loyal clients will find no reason NOT to choose GAMEFIRST! as their main supplier for all things gaming.

4.3

SERVICE BUSINESS ANALYSIS

GAMEFIRST! will aim to be a critical part of the video gaming industry, a thriving yet competitive market which includes the following types of businesses: The city of Mississauga, Ontario hosts PLAYDIUM: a major arcade hosting simulations and proprietary arcade attractions. They do not sell video games, cannot offer the latest titles, and can only offer limited opportunities in multiplayer gaming. They are an arcade style business, but they have their limitations. Internationally known GAMESTOP, BESTBUY & HMV: all want a piece of the video gaming industry. GAMESTOP/EB GAMES has been able to maintain a solid grasp of the retail aspect of the video game industry, but now that BEST BUY and HMV have realized and acted on the potential of video games, GAMESTOP is losing their market share. A majority of their revenue comes from aggressive used sales and competitive deals. Famous but bankrupt BLOCKBUSTER & the receded ROGERS VIDEO: were once kingpins of the entertainment forefront. They rented and sold movies, and soon after dabbled in video gaming. However, the famous internet movie services coupled with the aggressive postal rental services

greatly reduced their movie watcher client base, and as a result they were forced to cut back. They still operate in limited capacity in certain locations, and still cater to the video gamers, but titles are few and selected. Who will fill the void? Postal video game rental services and Internet gaming ONLIVE services: are practically nonexistent in Canada, and operate in certain cities in the US. However, unlike the thriving movie aspect of their business model, the video game side is a little bit tricky. ONLIVE requires the client to have a lightning fast internet connection and be near one of their few broadcasting towers to enjoy optimal performance. They currently have no towers in Canada. The Postal video game rental services such as GAMEFLY operate in limited capacity in Canada and are at the mercy of the ever striking postal workers. It is also important to mention that clients can only rent one game at a time, and often have to wait days before their new title arrives, even though it took them minutes to realize they disliked the previous title.

As the coming years will see a great increase in the popularity and demand of video gaming, so too will it see a huge increase in aggressive competition among retailers and renters. Video games are now considered an art form by the United States Supreme Court and as such will be afforded all rights and protections. As the public becomes more video game savvy, they will place a greater value with a brand they trust. GAMEFIRST! will be that brand, and we will have a firm grasp on the market long before any competitors are able to realize the need to change their business model.

4.3.1

COMPETITION AND BUYING PATTERNS

Our clients understand the concept of value, and are much more likely to pay for it when the offering is clearly stated and enticing. We are completely reassured that we will be able to easily compete against all rising video game retailers and renters. Although GAMESTOP will be hard to tackle based on customer loyalty and an already solidified brand, we are confident that with our commitment to developing staff and the superior service they provide, GAMEFIRST! will have all it needs to effectively compete in the market. GAMEFIRST! will offer all the services that our competitors currently provide, plus several others catered to the needs of gamers. By combining rental and retail aspects, GAMEFIRST! ensures it has both the consumer and investor covered appropriately. Clients will grow so comfortable with the ease and quality of our delivered services that they will hesitate to go elsewhere. We hope to entice manufacturers and developers to utilize our environment as a launch pad for all things gaming related, which will only help generate sales and popularity, driving down costs and raising profits. As for availability, although consumers tend to want local and immediate solutions for their gaming needs, GAMEFIRST! will ensure that consumer will go whatever distance necessary to shop at and support our business.

STRATEGY AND IMPLEMENTATION SUMMARY

The satisfaction of our target market is our ultimate goal. GAMESFIRST! will have an exceptional sales and marketing strategy that will consist of offering the latest in video gaming hardware and software, allowing clients to interact in a friendly and pleasant atmosphere, and a establishing a convenient location in the center of Mississauga and other future cities. GAMEFIRST! will establish a steady growth pattern in the video gaming community through word-of-mouth referrals from our satisfied clients, and various forms of advertising and rigorous promotions. 5.1 COMPETITIVE EDGE

Our competitive edge is a combination of our wide range products and services, an outstanding location, and our commitment to interaction with our clients. By building a business based on choice for the consumer and providing a comfortable means to engage in a good decision we simultaneously build up a dedicated client base. Our dedicated client base shall ensure that GAMEFIRST! will enjoy progressive growth with every venture. 5.2 MARKETING STRATEGY

GAMEFIRST!s marketing strategy is based on customer satisfaction, as satisfied customers are known as the best marketing tool. The first time a customer comes to GAMEFIRST!, they will know they have found a one stop shop for all of their video gaming needs, including a friendly and tailored atmosphere with exceptional customer service. Video gamers demand attention and crave a strong sense of community, and we plan on garnering this attention via representation across gaming communities and conventions. Word of mouth and a good reputation are the best marketing tools in a close knit community such as gamers. In addition, GAMEFIRST! aims to have an established website with the latest in video gaming news and features, do radio and newspaper advertising, distribute flyers to local businesses and advertise in the Yellow Pages. These venues will help us become known as we establish and expand our business. 5.3 SALES STRATEGY

Our major sales focus is to sell GAMETIME!, which is the selling of time to play video games and in itself a way of renting a video game. Our secondary focus is on the selling of video game software, hardware and accessories. Providing consumer choice will be our key sales strategy, and the implementation of various offers and abilities coupled with the convenience and comfort of our one stop entertainment complex should ensure customer loyalty and brand competition. GAMEFIRST! will sell GAMETIME! through each employees expert recommendation, courtesy and warmth, as well as our superior environment, creating a trusting impression on all customers. The video game merchandise will be sold based on merits of manufacturer and developer, as well as personal brand preference. We will ensure each visit to GAMEFIRST! is a professional and pleasant experience, so that consumers can always depend on our brand of service when they arrive.

We expect to have a customer return rate of 90% at the end of the first year and for sales to increase to over a million dollars by the end of the second year. GAMEFIRST! will be the IKEA of video games. 5.3.1 SALES FORCAST

The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate healthy first year revenue increasing modestly but steadily in the second and third year. These figures are based on revenue from three main areas. 1. GAMETIME! Rental Stations this includes sales of all rental time for hardware or software. With no major competition in this revenue area we expect a healthy first year from the new customer base. We estimate a 20% increase in this revenue area from repeat business as a result of customer loyalty. 2. Video Game Sales revenue will be generated from customers renting stations by the hour, and we estimate a 5% annual increase in this revenue area. When coupled with GAMETIME! promotions, we expect an increase of 10% as we provide customers with alternate but viable options. This revenue is all profit since it requires no cost for continual inventory and is basically self-service, so requires no labor hours. 3. Video Game Hardware/Accessories Sales this includes sales of all hardware components. We estimate a 5% annual increase in this revenue area from new customer acquisition. The sales costs for video game hardware average an approximate 70% of the final set sales price when the hardware is sold. 5.4 MILESTONES

The following lists important program milestones including dates, persons in charge and budgets for each. These milestones indicate our emphasis on planning and preparation. Business Plan Attract investors Negotiate/Sign Store Front Lease Build/Set Up Store Interior Secure Business Name and Legal Obtain Financial Backing Print Business Stationary & Flyers Meet with industry agents/Promotions Grand Opening for Store Distribute Flyers Research Media Advertising Print & Distribute 2nd Group of Flyers

REPUTATION GOAL AND STRATEGY SUMMARY

For most people, reputation is everything. Since consumers are constantly bombarded with choices and options, it is imperative that most companies stay ahead of the competition by providing consumers the reasons they need to make the right choice. This requirement is even more so within the gaming community, as gamers are known to support companies and brands over decades without question (refer to Duke Nukem Forever brand). 6.1 CONSUMER STRATEGY

GAMEFIRST! will earn is reputation among the gaming community by providing the choices necessary for the gaming community to thrive. Currently, gamers rely on a mail order service since the demise of Blockbuster Rental Chains. These services are often delayed by processing and mailing times, and consumers may only get one copy per session. GAMEFIRST! is poised to take over the rental void left behind by providing a rental space for consumers to try games before they buy, and main attraction in the world of renting. GAMEFIRST! aims to eventually host game awareness sessions, conduct reviews and provide for every gaming need. 6.2 DEVELOPER STRATEGY

Developers are the backbone of the community while being industry insiders. We will host game showcase sessions allowing game developers and publishers to showcase games early, and advantage of having an established gaming network. This will create awareness of any game product as well as solidify a relationship with the developer, while establishing a consumer base for said product. Cross promotions will also generate additional sales. 6.3 MANAGEMENT SUMMARY

GAMEFIRST!s management philosophy is founded on respect for the consumer, publisher, investors and employee, who are all our clients. We will study the needs of our client and in doing so will embody the vision of a community minded business dedicated to meeting every video gaming need. The management team will consist of video game enthusiasts who are experienced entrepreneurs possessing a breadth of functional experience in video game technology, software and development, enabling them to easily predict consumer outcomes and generate excitement. There may be a need to eventually hire a network specialist on a part time basis to conduct routine maintenance of system setups. When the need arises to hire floor level employees, GAMEFIRST! can only hire employees with experience in the video game culture, of which there is no shortage of. However, they will demonstrate a dedication to excellent customer service and possess some technical aptitude. The organizational structure and personnel plan reflects GAMEFIRST!s commitment to maintain an organization that is customer centered and technologically proficient, while efficiently managing cost controls and productivity. 6.4 PERSONNEL PLAN

The Personnel Plan below reflects our projected need at opening, and carries through the second year. The need for any additional personnel is not anticipated before the third year, but may be required if expectations are exceeded.

FINANCIAL PLAN
The following subtopics help present the financial plan for GAMEFIRST. 7.1 IMPORTANT ASSUMPTIONS

The key underlying assumptions of our financial plan shown in the following general assumption table are: 1. We assume access to the start-up funding necessary to provide adequate initial capitalization and establish our company. 2. We assume continued steady economic growth as predicted by the Bank of Canada, and other Canadian economists. 3. We assume a continually increasing fan base within the Canadian community. 4. We assume continued and steady increase in support from the Government of Ontario and Canada for business enterprises, which they have committed to do so. 5. We assume continued development of cutting edge technology and programming by major manufacturers such as MICROSOFT, NINTENDO & SONY.