BUSINESS ACQUISITIONS AND CONSOLIDATION

12 Months Ended

Mar. 31, 2013

BUSINESS ACQUISITIONS AND CONSOLIDATION

BUSINESS ACQUISITIONS AND CONSOLIDATION

5.     BUSINESS ACQUISITIONS AND CONSOLIDATION

In prior years, we consummated the acquisitions described below, which largely reflect our strategy to diversify our business by adding experienced development studios, intellectual properties and talented personnel resources to our existing infrastructure. The acquisitions were not considered to be material to our Consolidated Statements of Operations, individually or in the aggregate. The results of operations and financial positions of these acquisitions are included in our Consolidated Financial Statements from their respective acquisition dates forward and therefore affect comparability from period to period. During the fiscal years ended March 31, 2012 and 2011, we paid contingent consideration in cash of $4,101 and $1,000, respectively, for our prior year acquisitions. During the fiscal years ended March 31, 2013, 2012 and 2011, we paid $400, $2,000 and $2,000 by issuing 30,726, 128,439 and 192,826 shares, respectively, of our unregistered common stock as contingent consideration for our prior year acquisitions.

Acquired Business	Acquisition Date	Cash and Development Advances Paid		Value of Stock Issued		Goodwill Recorded on Acquisition Date		Identified Intangible Assets		Contingent Consideration
Mad Doc Software LLC	March 2008	$	4,715	$	1,353	$	4,617	$	1,275	Up to $15,000 payable in cash or stock, based on meeting certain employment provisions and future product sales, of which $1,650 was paid as of March 31, 2013.
Illusion Softworks	December 2007		5,033		27,875		24,901		8,200	Up to $10,000 based on future product sales, of which $8,601 was paid as of March 31, 2013.

In March 2008, we acquired the assets of Rockstar New England, Inc., formerly known as Mad Doc Software LLC ("Rockstar New England"), an independent development studio in North America and developer of the Bully franchise. Total consideration paid upon acquisition was $6,068, consisting of $3,740 in cash, 53,033 shares of our unregistered common stock and $975 of development advances paid prior to the acquisition. The terms of the transaction also include additional contingent deferred payments payable in cash or stock of up to $15,000, which are being allocated to purchase price when the conditions requiring their payment are met. The goodwill recorded in connection with this acquisition is deductible for tax purposes.

In December 2007, we acquired all of the outstanding capital stock of 2K Czech a.s., formerly known as Illusion Softworks, a.s. ("2K Czech"), the Czech Republic developer of the Mafia video game franchise. The acquisition reflects our strategy to add high-value intellectual property and development studios to our portfolio. Total consideration paid upon acquisition was $32,908, consisting primarily of 1,496,647 shares of our unregistered common stock and $4,645 of development advances paid prior to the acquisition. The terms of the transaction also include additional contingent deferred payments in cash and stock of up to $10,000, which are being allocated to purchase price when the conditions requiring their payment are met. The goodwill recorded in connection with this acquisition is not deductible for tax purposes.