FILED: NEW YORK COUNTY CLERK 05/09/2011

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With a fan base that “crosses gender, race, and age demographics,” Beyoncé would, in the words of her manager, give the game “[w]hole-family appeal.” And her own efforts as a public figure to promote health and exercise through dance would highlight the game’s fitness-oriented theme. 40. Potential investors were also reminded that Beyoncé had enjoyed enormous success promoting products for L’Oreal, Vizio, Sony Music and American Express and had launched several new products of her own to great commercial success, including her signature PC Law # 15232 14
perfume, “Heat”—which became a top seller overnight for perfumer Coty—and a clothing line called House of Dereon. Furthermore, she would use her relationships with behemoths like L’Oreal and Sony Music to promote the game and cross-sell the various products she endorsed. As Mr. Knowles stressed, his daughter’s fame, appeal and market power are such that products she associates with “don’t fail.” 41. For all of these reasons, potential financiers believed Starpower: Beyoncé was likely to generate huge profits, and thus represented an attractive financing opportunity. Because it was apparent to both BDJ and Ms. Carter that Gate Five could easily obtain financing, they agreed not to rush into a deal, but rather, to keep exploring until they found the option they considered most desirable. Microsoft Starts Marketing the Kinect and Wal-Mart Commits to Starpower: Beyoncé 42. Meanwhile, the prospects for the game were looking better and better. In June, 2010, Microsoft launched a $500 million advertising campaign for Kinect with the slogan, “You Are The Controller.” As part of the campaign, Microsoft publicly announced that it planned to release Kinect for sale the following November, both as a standalone product for owners of the Xbox (the video game console that Microsoft makes) and as an accessory to be included with new Xbox purchases. 43. Microsoft’s advertising campaign was a great boon for Gate Five. By informing people about Kinect and encouraging them to buy it, Microsoft was creating a huge market of people hungry for high-quality games, like Starpower: Beyoncé, designed to be used with that technology. With a November <strong>2011</strong> release date, Starpower: Beyoncé would be timing that market perfectly. Its release would be close enough to the launch of Kinect that it would be one of the first dance games to use the new technology, yet far enough out that, thanks to Microsoft’s PC Law # 15232 15
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Page 7 and 8: Electronic Arts, MTV, Major League
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Page 11 and 12: with the Kinect, and it was activel
Page 13: Those factors would have been enoug
Page 17 and 18: Mart. Starpower: Beyoncé featured
Page 19 and 20: game sold 7 million units (a conser
Page 21 and 22: 58. Two days later, her lawyer sent
Page 23 and 24: Ms. Carter Shocks Her Business Part
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Page 35: terminated it. 112. The Agreement i

FILED: NEW YORK COUNTY CLERK 05/09/2011

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