BIZ: Do you feel Halo 3's momentum carried over (both in terms of the game and its effect on hardware) the way you expected, and will this continue in November and December?

Anita Frazier: Yes, it did. Halo 3 captured the top spot for game sales again this month even after its stellar performance last month. 360 hardware sales were very strong as well. Since there are some great titles yet to hit the market, the 360 platform should have a strong holiday across software, hardware and accessories.

BIZ: Where did Guitar Hero III place on PS3? Are you surprised it's not in the top ten?

AF: GHIII on PS3 came in 13th for the month. What is interesting is that GHIII had a fairly similar attach rate for the Wii, the 360, and the PS3 - all in the 5 to 7% range. As PS3 sales pick up in November and December, I think we'll see more corresponding GHIII on PS3 sales as well. In the meantime, the top platform for Guitar Hero III sales was the PS2 - combining the bundled and non-bundled PS2 SKU's, 36% of GHIII's sales were on the PS2 platform. It's a perfect example of a great title that can capitalize on the huge install base of that platform.

BIZ: Wii Play's consistently good sales amaze me. Is this a sign of all the new Wii buyers each month?

AF: Although our data wouldn't capture if it's new hardware owners picking up Wii Play or not, my hunch is you're right. Since Wii hardware sales have been so consistently strong, and since Wii Sports is packed in, Wii Play seems to be a natural "second" title to pick up for new owners. Wii Play is second only to Halo 3 in total unit sales year-to-date, and I bet in January when we're looking at the top 10 list for the entire year, we'll still see these two titles right up there.

BIZ: The PS3 hardware sales were bad once again. Was this a function of the price cut announcement and people waiting? How much will the $399 lift sales in Nov/Dec?

AF: PS3 sales rose from September to October, so I don't think there is any evidence that the price cut announcement delayed the timing of sales. I do believe we'll see a significant increase in sales in November and December as a result of the price cut combined with a hot holiday season for the games industry.

BIZ: Any other trends or surprises for you this month?

AF: Look at those accessory sales! Yes, accessory sales have benefited all along from all the new hardware sales, but this month it was particularly strong. Controllers led the way as they typically do, with Wii and 360 controllers to go along with all those new hardware sales leading the pack. But, as you can imagine, guitar controllers did quite well this month too.

BIZ: As always, thanks for your time.

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In the memo sent to press, Frazier added about Guitar Hero III: "Guitar Hero has certainly established itself among the elite video games properties. Very few games sell in excess of 1 million units in their first month in market, but Guitar Hero III did easily with combined sales of 1.4 million units in only 6 days. Since it has broad appeal, it's also the type of game that should continue to do very well throughout the holidays."

And regarding the current state of the industry she noted: "This year sales have already achieved the annual sales number for 2005 - and the two biggest months are yet to come. I think we'll see not only record-breaking revenues but record-breaking year-over-year growth when the final numbers are tallied."

Frazier previously told us on multiple occasions that 2007 could see a total sales figure in the range of $17 - $18 billion.