The Wedbush Video Game Index—a market cap-weighted index of video game companies—finally outperformed the Russell 2000 during the month of October, a feat it has not accomplished in several months, with a total return of –4.9%. 

•         Industry sales grew slightly in September, breaking a string of six straight months of double-digit sales declines, but we expect sporadic growth in the months ahead. 

• The top November releases are expected to be Activision’s Call of Duty: Modern Warfare 2 and Ubisoft’s Assassin’s Creed 2. 

       Key October headlines:

•          10/4 – Nintendo releases Wii Fit Plus  
•          10/6 – Electronic Arts and Take Two release NBA Live 10 and NBA2K10, respectively
•        10/19 – September NPD U.S. video game sales up 5%, below our estimate of +21%
•        10/23 – Microsoft reports earnings, one day after unveiling Windows 7
•        10/27 – Activision Blizzard releases DJ Hero
•        10/29 – Nintendo releases worse-than-expected Q2 results and lowers guidance
•        10/30 – Sony reports its fourth consecutive quarterly loss 

Key November Events

• 11/4 – Ubisoft releases Q2 sales.   UBI
•          11/4 – THQ reports earnings   THQI
•          11/5 – Activision Blizzard reports earnings    ATVI
•          11/9 – Electronic Arts reports earnings   ERTS
•        11/10 – Activision Blizzard releases Call  of Duty: Modern Warfare 2    ATVI
•        11/17 – Ubisoft releases Assassin’s Creed 2    UBI