GameDaily BIZ: Considering that the 2007 total does not include any PC games or online PC revenue, how much more would that add?

Anita Frazier: Next week we will have some additional reporting on software sales including PC games, and we'll have some good information on how the face of the gaming consumer changed from 2006 as well.

BIZ: Did the $4.82 billion in December meet expectations?

AF: I guess it depends on whose expectations you're talking about. I've seen a variety of estimations in print and I don't track those. I can tell you that the year ended up in the range of where we thought it would when we started looking at year-to-date sales and historical seasonality. The seasonality trends are so consistent year after year it's pretty amazing, considering how different each year can be.

BIZ: What does it say about the PS3 that it still couldn't break a million units in December when every other platform did?

AF: Actually, of the next-gen systems it realized the greatest month-over-month increase at 70+% of November unit sales. Of the ongoing viable systems in the marketplace, its growth was only "bested" by its sibling, the PS2. The software slate for the PS3 is still ramping up, and that is what we know will truly drive those big sales increases.

BIZ: As well as the DS has done for Nintendo, it seems growth in the portable sector was dwarfed by the growth of console hardware and software. Did portable take a backseat at all last year?

AF: Not at all. The DS captured the top spot for hardware sales for the year, and the PSP has grown a lot this year as well. Keep in mind that portable systems and games, in aggregate and on average, are less expensive than console. So looking at unit sales rather than dollar sales, portable gaming comprised 33% of the market in 2007, and that's the highest proportion on record. My perception is just the opposite: that portable gaming has been taken to a new level and it's now firmly established with an older demographic in addition to its traditional user base.

BIZ: Considering that Madden was tops in 2006, was 2007 a disappointment for EA' Sports' flagship franchise?

AF: Not at all. Madden had a great year. The franchise realized sales in line with what it has done the past several years, and at the title level (combining sales across platforms), it was the second best-selling title behind Guitar Hero III. I'd take that any day.

BIZ: With Rock Band finally having launched on the more mass market and huge installed base of PS2 I was surprised not to see it in the top 10 in December either. Where did it end up and what's your assessment of Rock Band in its battle with Guitar Hero?

AF: Yes, that is one drawback to listing sales by unit sales order. Rock Band had a great debut, particularly considering its price point. Despite only two months at retail, and having an average retail price of over $160, it brought in sales (across platforms) of over $180 million. It's in the top 30 title list for the year. This is exactly the kind of title that has great potential to continue to grow sales since it's a social experience. Once someone tries it out with their friends, they're more likely to want to go purchase it for themselves. It didn't unseat Guitar Hero, but it certainly held its own.

BIZ: Looking at the growth in 2007, what were the key trends that the industry should pay attention to?

AF: We already touched on the increased prominence of portable gaming which was definitely a trend to watch the last two years. Mass-market and family-friendly gaming got more respect this year, deservedly, because of the continued success of the PS2 and as evidenced by the market embrace of the Wii. I think we'll look back on this year as the year that really pushed gaming over into the mainstream of entertainment.

BIZ: Can 2008 eclipse 2007? Care to make any guesstimate?

AF: I do think it will grow, but to a smaller extent than it did this year. 2007 was a year that should have normally (if history repeated itself) been largely about the console transition, yet portables did great and software sales flourished as well. Next year the focus will be even greater on software, and keeping the momentum up behind mass-market gaming and bringing more titles to market that will bolster the install base of the console systems. It's going to be another fun year to watch.