BIZ: Sales (both hardware and software) were way up this month, even higher than analysts had predicted. What does this say about the health and continued growth of the industry?

Anita Frazier: Yes, the performance is pretty incredible. I get asked a lot whether the video games industry is recession-proof, and indeed, it certainly is performing that way. It's too early to start estimating where the year will end up based on year-to-date performance, particularly when these early months have been so impressive. But another record-breaking year seems to be a no-brainer at this point. Thinking of all the stellar games yet to come, it certainly is going to be another exciting year to watch. We will have our first quarter consumer data available next week and it will be interesting to dig into that data to see what the demographics look like and whether audience expansion is still evident - I suspect it will be.

BIZ: The Wii's sales were incredible. The release of Smash Bros. probably had a huge effect on hardware adoption right?

AF: Wii sales were impressive. I personally know a few people that went out and purchased a Wii specifically because of how excited they were to play Super Smash Bros. Brawl. So, yes, I think this title drove additional hardware acquisition, but I think there has also been (and probably continues to be) considerable pent-up consumer demand, and with greater supply available at retail, some of that is now being satisfied. I think a similar scenario is true for the DS. Even without a game in the top 10, DS sales were robust. This seems to be the result of greater inventory availability to satisfy that pent-up demand, combined with increased retail promotional activity.

BIZ: A number of analysts thought the PS3 would outsell the 360 in March, but it was the 360 that slightly edged out PS3. What do you think played into this?

AF: I didn't have any preconceived notion as to which would land in what rank before the numbers were released. Really, the sales figures for those two systems were so close that you'd have to call them pretty even. Both systems realized sizeable gains when compared to their March 2007 sales and I think Easter timing is playing into the big industry results we're seeing this month as well. While the March figures are plenty interesting, I think it's going to get even more interesting when April numbers come out and GTA IV early sales (and its ripple effect on hardware and accessories) can be seen.

BIZ: Any other important trends or surprises you would point to for the March period?

AF: I think the biggest surprise is just how well the industry is doing across all fronts. Last year, hardware saw the biggest percentage increases and in this phase of the transition, you expect to see the spotlight again more brightly focused on games and their performance. And while that is certainly proving to be true, hardware and accessories keep churning out great sales and overall it's just a really good testament to the health of the industry.

Also, at the end of 2007, I was really focused on the fact that GTA IV was coming in April and that first-half industry sales should really be bolstered by the effects of that title alone. Now that Super Smash Bros. Brawl has come out and sold like hotcakes, I am looking at the breadth of offering for April and there is truly something coming to satisfy the most disparate groups of gaming consumers. It used to be conventional industry wisdom that games had to come out in the fourth quarter to succeed, so it's refreshing to see more and more "big" titles released earlier in the year and busting that myth.

BIZ: Thanks Anita.