BIZ: The PS2 hardware sales figure is surprisingly high to me. It's the system that never dies. What are your thoughts on PS2 sales and how long this aging system can keep this up?

Anita Frazier: Yes, while I continue to expect strong PS2 sales for some time, the number surprised me as well. I think a number of things - price, promotional activity, and strong "mass-friendly" titles like Guitar Hero and Rock Band to name a few - are contributing to the robust sales of PS2 hardware. I've said for awhile that I see the PS2 continuing to be a strong foundation for the video games market, and my opinion is only strengthened by these latest figures. In fact, PS2 hardware, software & accessories sales accounted for nearly 14% of total dollar sales this month.

BIZ: What kind of growth are you seeing from Rock Band? It's in the top 10 but Guitar Hero is still ahead.

AF: I don't see why there has to be a race between Guitar Hero and Rock Band. Both games are generating terrific sales, and players are enjoying the experiences that both of them provide. What is more interesting to me is that in what many are now deeming a recession, that games with such a premium price point are thriving. It's certainly a testament to the experience that both of these games deliver.

BIZ: Judging by the large growth in software vs. the growth in hardware this month, 2008 will really been driven by software, right?

AF: Yes, while hardware sales are still closely followed, at this point in the console lifecycle the focus once again returns to the heart of this industry - the games. There are some big games yet to drive sales in the first half of the year so I think we'll see more and more attention paid to games and how they affect the entire games ecosystem.

BIZ: Any big surprises for you in February or trends you want to point out?

AF: At the end of 2007 I expected 2008 to again be a record-breaking year for the video games industry, but with more modest growth than what was realized in 2007. So far this year the growth volume has surprised me a bit especially considering the state of the economy right now.