BIZ: Accessories was the only category that declined. What happened?

Frazier: Good question. I asked myself the same question when I saw the figures because usually strong hardware sales are accompanied by strong accessory sales. I'm guessing this is a temporary anomaly and that anticipated continued strong hardware sales will lead to rebounded accessory sales in November and December. I think folks will want additional controllers and other accessories to play with all their shiny new hardware.

BIZ: Results overall were quite positive but hardware sales were up just five percent. What do you think the month says about the industry's recession resistance?

Frazier: Console hardware was up 13% in dollar sales while portable hardware was down 17%. When you look at the portable segment of the market in total right now, it has stalled a bit but I think this is a temporary situation because there just aren't a lot of higher profile portable games out there right now - and console is taking the spotlight with the big Q4 releases. I think overall industry performance continues to show that the industry is weathering the current economic environment pretty well, and that consumers are still looking for fun gaming experiences.

BIZ: Looking at the hardware numbers for Xbox 360 in light of its recent price cut and the Wii's continued strength and comparing those to the PS3, it looks like Sony's high MSRP could hurt sales this holiday season, especially given the economic environment. What are your thoughts on consumers' price sensitivity?

Frazier: There are always segments of price sensitive consumers and when we surveyed consumers about their next-gen purchase intent a couple of years ago, there was a segment that clearly indicated they would be waiting for price cuts to make new hardware purchases. With the economy so rocky right now, there might be even a little more contemplation on the part of consumers before making a purchase, but given how well the industry is weathering things right now, it doesn't look like there is any cause for alarm.

BIZ: What stood out to you for the month of October?

Frazier: How well the industry is weathering the storm. Sure, we may begin to see individual categories or games see some down months, but overall the industry is doing well. It's still on track to realize $22B in sales for the year.

BIZ: There are no Guitar Hero or Rock Band SKUs in the top 10. How did these fare? Is the higher pricing on these games finally becoming an issue for the publishers?

Frazier: Given how well GH3 did at launch last year, there was bound to be some extra scrutiny on these new releases. While not living up to last year's launch, Guitar Hero World Tour sold a very strong 534K units at an average retail price of $126. Not shabby! And Rock Band 2 has sold 600K since its release so I'd say the genre is holding up quite well. These will make great gift-giving items over the next two months as well.

BIZ: Thanks Anita.