[Michael Pachter, Wedbush Morgan Securities]

On whether publishers underestimated the Wii and DS: It's hard to criticize anyone for putting too much faith in the PS3, as most [publishers] haven't created "cutting edge" titles yet for that platform. Most of the PS3 titles so far have been perennial titles, like Madden, Tony Hawk, etc.. And I don't think that the publishers have "put too much faith" in the 360, as that platform and [its] games are performing well.

Rather, I'd say that most failed to capitalize on the DS and Wii opportunity. The exception on the DS side is THQ, which has made every game it can for the platform. On the Wii side, Ubisoft took a big chance by making ten games for the [Wii] launch window, and it has performed very well, so far. I think that the others will catch up no later than early next year.

On which publishers have fared best and worst: Ubisoft by far has capitalized best on the Wii with Rayman and Red Steel. I think Ubisoft has been smart on the DS as well, with its My Coach, Imagine, and Petz lines all planned for this fall.

The others have primarily made only brand extensions for the Wii and DS. That all changes with Boogie from EA, which looks like a real winner. Also, Activision will get Guitar Hero out on the Wii before MTV gets Rock Band out, and I think that will give them an advantage.

EA's Wii-exclusive rhythm game Boogie

Take-Two is probably the worst on the Wii and DS, having ignored both until now. I don't think that its Carnival Games will be a huge seller. The Bigs on Wii is fun, but not very innovative.

On advice to publishers looking to capitalize on the Wii and DS: I think that the best thing for the publishers to do is innovate. For example, on the DS, Ubisoft plans an English-Spanish and English-French translation game, emulating the success of an English-Japanese game released in Japan. The company is also producing Jam Sessions. All of these are relatively inexpensive [to develop], and should make money.