Anita Frazier Great Quotations

Microsoft's lead time in building share for this console generation is real. The longer that lead time is, the greater the initial risk for Sony.

While total industry sales have continued to decline, the power of entertainment in driving sales can be seen through the incredible success of franchises such as Star Wars and Dora the Explorer. The Star Wars franchise had a great year, contributing to the increase enjoyed by the Action Figures and Building Sets categories.

As the possibility of building a greater install base for the first 'next-gen' system increases, so does the possibility of selling more software. So, that combined with some good sales of titles for current-gen systems could be a stabilizing factor for the industry.

They did a great job of creating the hype. The 360 has largely been out-of-stock at retail since its launch last November. So clearly, selling out is one sign of performance, but you can't say that its market potential has been even close to tested with the limited supplies available.