Far Vista Interactive Corporation (OTCBB: FVSTA) is a dynamic online entertainment company in Canada. The company plans to move from just offline PC games into the more unique and appealing online tournament version. This approach allows Far Vista Interactive Corporation to capture traditional game market sales while positioning it to reap the profits from online play as well. Far Vista Interactive Corporation's first tournament game to hit the market will be Far Vista Tournament: Run the Gauntlet. This genre changing game will be made available on the personal computer, Xbox360, PlayStation 3, and cellular phone platforms. Far Vista Tournament: Run the Gauntlet innovation and uniqueness positions Far Vista Interactive Corporation to capitalize and reap the benefits of future explosive and staggering market growth.

 

The Company

Far Vista Interactive Corporation has programmed and provided art and games for several recognizable and large North American entertainment companies including Microsoft, MyDreamFlyer, Dreamcatcher, and Silverline.

Far Vista Interactive Corporation staff has worked with many notable game developers such as Ubisoft, Mad Doc, EA Games, and numerous other studios throughout North America and Europe. Located in the city of Saskatoon, Far Vista Interactive Corporation has access to a highly educated yet cost effective labor force with one of the highest efficiency ratings in the world. The highly rated Computer Science program at the University of Saskatchewan is a ready source of programmers while New Media Campus, a private College, produces graphic artists readily snapped up by Far Vista Interactive Corporation as well as Ubisoft, Mad Doc and EA Games.

Far Vista Interactive Corporation experienced management team is lead by its CEO, Mr. Richard Buckley, with Mr. David Callele as the Executive VP of Programming and Mr. Bruce Hoggard Executive VP for International Development, Corporate Relations and Business Systems. These three (3) senior management individuals, plus support staff, designers, artists, and programmers provide a high level of professionalism in research and development, design, artistic creation, production, marketing and management experience and expertise.

For Microsoft and MyDreamFlyer, Far Vista Interactive Corporation recently created the hanger and plane animation for DreamFlyer™, the new Microsoft flight motion simulator (mydreamflyer.com). These animations were included in the DreamFlyer™ commercial shown by Microsoft during the September launch of the simulator at Toronto's Pearson Airport.

Far Vista Interactive Corporation provided art and programming development for two published games. The game titled Forever Worlds went to market in 2004 through the American company, Hexagon Entertainment while in 2006 Time to Ride 2 - Saddles and Stables was created for the Canadian company Dreamcatcher.

In early 2006, Far Vista Interactive Corporation's adventure game, Apocalypse Spell, was a Semifinalist in the "Indie" Game Showcase at the Game Developer's Conference (GDC) in San Francisco.

In mid 2006 Far Vista Interactive Corporation began work on its first Triple A title, a First Person Shooter (FPS) call Run the Gauntlet. At this point Run the Gauntlet has progressed to the pre-release phase and awaits the final infusion of capital to launch. The game's worldwide rights are held by Far Vista Interactive Corporation. In the movie genera, Far Vista Interactive Corporation' last feature film FX (special effects) was completed for the horror movie Shadow Puppets released in 2006.

 

Enter the Enchanted World Of Far Vista Interactive Corporation

Run the Gauntlet first Person Shooter

With Run the Gauntlet, Far Vista Interactive Corporation captures the traditional game market in addition to reaping the profits from online play. This innovation and uniqueness positions Far Vista Interactive Corporation to capitalize and reap the benefits of future explosive and staggering market growth from playing online. For each game Far Vista Interactive Corporation retains a fixed portion (25%) of the proceeds from the given Run the Gauntlet experience. All remaining revenues (75%) from the admission to that particular Run the Gauntlet game are distributed back to the players according to how many tokens each player has when they successfully complete the game. Therefore, there are real rewards for strategy and brains where skill and practice can succeed over straight brawn and might. The following four scenarios are all player pay, where the player has the opportunity to collect tokens and have them credited to their account. This provides players with the opportunity to earn tokens based on how skilful they are within the five (5) game maps.

As a marketing tool, players will be able play and enjoy the game using free silver tokens. They can use this "free" play to advance their skills before entering the real competition. This will appeal to the novice, the female gamer as well as provide hardcore gamers an opportunity to try the game before paying to compete.

 

1. Timed Game 20 Minutes(adjustable by Administrator)

The numbers of tokens the players are holding at the end of the 20 minutes game are transferred into their respective account.

2. Timed Game with exit Portals

The player keeps the number of tokens they have when they exit the portal. The game is over when a player exits the portal or at the end of 20 minutes. Players must exit to keep what they have collected.

3. Team Games

The same features as above but players get to play in teams of either their creation or randomly drawn when entering the game

4. Special Weekly or Monthly Games Players play for the accumulated tokens not won within the original games during that week or month. There is a special fee to join these games and the games are posted on the website and Gauntlet Television.

 

Market Highlights

The following numbers and facts are from the games' industry and provide support to the revenue projections and the phenomenal growth opportunities for Gauntlet™.

More than 160 million players world wide participate in PC games with males playing on average 14 to 20 hours per week (Computer Gaming World Magazine).When game action is combined with the Internet, online games emerge, a rapidly growing phenomenon taking the level of competition and enjoyment to a radically new level.

The market is represented by "Core Gamers", "Players", and "Causal Gamers" with the "Core" group representing approximately 53% or US$4.7 billion of all online and console game sales. Further more, according to DFC Intelligence analyst David Cole, by the year 2011, videogame industry revenue will reach $44 billion, a phenomenal 96% increase from $29 billion in 2005.

A game generates its greatest sales in its first four (4) to six (6) months of being released. By December 26, 2006 EA reported Battlefield 2142 had hit one million online games played after being released on October 17, 2006.(EA Games, December 2006) Given its unique business plan approach, Far Vista Interactive Corporation, expects Run the Gauntlet to surpass these figures.

 

Market entry and development

Several target markets will enjoy and play Run the Gauntlet. In each market segment, the buyer reflects the demographics of people tracked by Computer Gaming World Magazine in its 2005 survey. In this survey, it found the average gamer was:

Player 85 % are male

Age Mean age - 33 years

Income $70,500 per year

Buying habits $73 to $85 on video games

Buy 2.5 games every two months

Own up to 57 games of all types Run the Gauntlet's initially release will be in the North American market, which still represents the largest single PC game market in the world with more than 18.6 million core gamers and 53% of all videogame purchases spending close to US$4.7 billion each year (Digital Gaming in America). This market is followed by countries China, Japan, and Korea where PC gaming is firmly established and in China's case, growing at an amazing pace. The plan is for the North American release to be followed by releases in several other regions, including Asia and Europe. To this end, ongoing discussions continue with companies in China, Japan, Singapore, Germany and several other countries. One such company in China is Shanda, located in Shanghai and one of the largest game companies in the region. Feedback from Shanda continues to provide further insight and recommendations on the market and how Run the Gauntlet's and other Far Vista Interactive Corporation' games can be "culturalized" to work within China and the Asian market in general.

As Far Vista Interactive Corporation continues moving Run the Gauntlet's towards its 2010 release date, a small creative team is working on several game concepts for its next game..

Far Vista's initial target marketing efforts will be focused on three areas. The target markets can be broken into defining categories including the primary and secondary markets for the Gauntlet. The gamers are referred to as "Core Gamers", "Players", and "Casual Gamers" with the "Core" group representing approximately 53% of US$4.7 billion of all online and console game sales. Primary 1 target market represents the "Core" while the Primary 3 target market represents those people in the "Players" and ‘Casual" definitions.

 

Primary 1 - FPS Gamers

Far Vista's primary market will be to those gamers who are already hooked on and enjoying the FPS types of games. This is the most popular style of game for the hard-core gamers. There are approximately 35 to 40 million gamers playing FPS on legal and original copies of these games across all the various game platforms. This group is expected to contribute the largest percentage of players who, when given the change to be rewarded for their ability, will drive sales.

Based on the numbers of players in this category alone, it is not unreasonable to expect the sale of at least 500,000 units for the PC as well as 500,000 units for the Xbox 360.

Primary 2 - Traditional Gamblers

The second primary target is the Traditional Gambler. Far Vista intends to market and appeal to their sense of adventure in beating the odds and the desire to win big. With gambling popular in all countries, this market segment is at least as large as the FPS segment, if not larger by 100 times. However, the appeal of a FPS to "win" money may require more time to take a foothold.

Primary 3 - Adrenaline Junkies

The third primary target market in the segment composed of "Adrenaline Junkies". These gamers are playing other extreme action sports and action games. Adrenaline junkie gamers are always pushing the limits of the game and looking for more and more excitement and "leading edge" involvement. These types of gamers live vicariously through their online heroics and accomplishments.

 

Distribution Methods and Marketing Strategy

Far Vista's overall strategy is to finalize development of and market its FPS game known as the "Run The Gauntlet". Far Vista intends to continue with development of multi-player internet, online games which are competitive and where the opportunity to win money is a primary motivator. Far Vista intends to leverage its intellectual properties, using core technologies that can be used to develop specific applications for almost all current video games that do not require source code interfaces, to design products that have defensible technologies and short time-to-market development cycles. In addition, Far Vista intends to create a dedicated online game community whereby the gamer controls their avatar in the game and that offers social networking features to target monthly internet gamers worldwide.

Online gaming is the most popular net application after e-mail for China's 65 million citizens. Throughout the world, gaming leagues and companies are organizing competitions where cash prizes are now worth more than US$100,000. Competitions are now televised live and covered by major publications and newspapers such as MTV, CNN, ESPN, USA Network, AB World News Today, FOX, WB and other media companies looking for a unique advantage. All Far Vista games are intended to be competitively priced for the consumer market. Currently there are at least 20 different FPS video games on the market, crossing all of the various video game platforms, including Xbox360, PS2, PS3, Nintendo and PC's. The number of consoles for PS2, according to Sony, is more than 110,000,000, while Microsoft's Xbox 360 is nearing 10,000,000 units.

Far Vista will rely upon multiple sales channels including:

	1.	Selling directly to consumers via online sales and television infomercials.
	2.	Developing strategic alliances with other businesses with mutual business interest (OEM)
	3.	Launching products into retail by selling directly to retailers and distributors with relationships with Far Vista target retailers.

Test Markets

The Gauntlet has been tested in Canada, the United States, Germany, Singapore and China. As the game nears completion, it is crucial it be tested in its "beta" form, that includes its' user account and payment systems, in several other countries and locations. The Beta centers including the following locations, available through Bruce Hoggard, our Executive Vice-President of International Development, Corporate Relations and Business Systems.

With the importance of Asia, and, particularly China, the first test center outside of Canada will be located in Shanghai, China. The process will be handled and overseen by Cansino, a local marketing company with contacts throughout China, Europe and North America. Shanda, the third largest game company in China, will continue to be the test center for the beta form of the game.

In Japan, the Japan Marketing Association will head up and operate the testing process.

In China, there will be two organizations involved in the testing process. The first is Alcom Asia. Alcom Asia will assist in the testing and collecting of feedback. The second organization is the Polytechnic University of Hong Kong. With the Polytechnic University of Hong Kong, Far Vista will have access to many male students who fit the gamer profile and can provide valuable comments and suggestions as the game is developed and tested.

Far Vista recognizes Indonesia as being the fourth largest population in the world and a potential market for the Gauntlet. Located in Jakarta and Singapore, MarkPlus Institute of Marketing will have the responsibility of testing the game during the development period.

The European beta test center will be located in Germany and be operated by m&p Public Relations GmbH. The company will assist Far Vista in obtaining European reaction to the game, provide comments and recommendations on how to improve and hype-up the initial prototypes.

The Korean beta test center is yet to be confirmed. Far Vista intends to have the test center established prior to month three (3) in the final development process.

Far Vista plans on establishing beta test centers in Canada, the United States, England, India, Thailand and several other countries included in our Executive Vice-President of International Development's network of business contacts.

With the global ability to test and play the game in its final development, there is also the benefit of being able to test the web connections and portals by having various geographic testing centers play against each other.

 

Final Launch Development

The Gauntlet is expected to be launched first in North America during the winter of 2010, and thereafter, in China.

Far Vista Studios is currently in the development and testing stage of its North American web based distribution, sales and user account system.

Far Vista's initial marketing efforts will be focused on four areas:

	(a)	Clearly defining the company/video game software product message to create reseller and end user awareness and demand for the Gauntlet.
	(b)	Developing a video game software product strategy that appeals to both major retailers and consumers, including: (i) delivery of the Gauntlet that commands prominent retail shelf space; (ii) create attractive, eye catching retail packaging; and (iii) achieve consumer price points (comparably priced to other video games).
	(c)	Establishing the "Far Vista" brand as a pioneer and leader in the category.
	(d)	Creating an active experience for casual and avid gamers alike with a dedicated online game community

Competitive Business Conditions And The Small Business Issuer's Competitive Position In The Industry And Methods Of Competition

Far Vista's business is highly competitive in nature. The Company competes with other businesses in various categories including online games portals. Depending on the product line, the Company competes with others for retail shelf space, human resources, investment capital, strategic alliances and many other resources.

 

Core Management Team:

CEO, Mr. Richard Buckley, MBA, BA, BEd ,

As the game designer and producer for Far Vista Interactive Corporation, Richard has led media production teams of as many as 120 people in a wide range of interactive media productions. Because of his expertise and love for the gaming industry, he teaches 3D Animation and Computer Game Design at New Media Campus during his "spare" time. Richard worked on programming and production of "Forever Worlds" and Time to Ride 2; Saddles and Stables and Shadow Puppets. He is also a Professor of 3D Animation and Computer Game Design at New Media Campus in Saskatoon.

Executive Vice President, Mr. David Callele, B Eng, MSC,

As Head of Programming, David was Technology Lead for Forever Worlds and has extensive consulting experience in the video game industry with several of the more prominent gaming companies and studios. David is also working on his PhD in Computer Science and is a programmer for "Soledo Design"

Executive Vice President, Mr. Bruce Hoggard, MBA, BSPE, CMC, MMIS/OS, F.C.Inst.M.

With more than 20 years of international marketing and market development experience and a network reaching across 25 countries, Bruce is the new addition to the management team. Overseeing Corporate Relations, International Development, Business Systems, and Marketing, he is responsible for all aspects of marketing and corporate relations. Since 1992, Bruce has taught international business and marketing for the University of Saskatchewan at the diploma, graduate, and undergraduate levels as well as at a private College in Switzerland.

Conclusion

Other positive influences on the revenue generation of the game, with these three (3) items adding more than US$100 million to the Company's net profit before taxes, will include:

* Weekly or monthly "bonus games" where prize money is

increased to reduce the overage to the 75%- 25% split. The entry fee

could be as high as $100.00 with prize money being as much as

US$10,000 or more.

* High roller games where the registration fee to enter the game could be as high as US$1,000 and the total payout being more than US$37,000.

* Licensing of products and characters will also provide another revenue stream in the second or third year as this too is a very popular phenomenon amongst gamers.

As the numbers illustrate, even with high marketing costs, Far Vista Interactive Corporation could be making approximately US$8.7 million in its first full year of operation. This is still at only US$1.00 per game and becomes US$86.3 million for the US$5.00 game. This provides potential cash flow volumes, reaching close to US$1.2 billion per year, and a very healthy and viable business approach that can be used in other block buster games produced by Far Vista Interactive Corporation. When US$10.00 per game is used, the Average Gross Margin per year based on all of the other factors staying constant, increases to US$219 million.

 

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Contact FVSTA.OB

www.farvistainteractive.com
Address:
1530-9th Ave S.E
Calgary, ALB T2G 0T7
Canada
Phone: (403) 693-8000

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