Just listened on the ATVI call. It is clear as can be that they sandbagged expectations for next Q as much as they could. The 1c drop in EPS was related to Blur being pushed out to 2010. Next Q is going to be a MONSTER with incredidle sales for MW2, Hero products and Tony Hawk.

And for all those who thought Hero "bombed": in fact, GH5 sold 20% MORE YoY on X360 and PS3 (it dropped on the Wii, cause casuals didn't buy as much). They sold out of DJ Hero stock on the FIRST DAY, and are now working hard to replenish for black Friday.

New high-margin revenues within the WoW universe with premium services and in-game transactions.

Margins on Hero hardware expanding as they found ways to reduce COGS.

Many stores intend to have "store inside store" dedicated to ATVI products this Xmas (i.e. at least 600 of these with Toys R Us). Retailers running their own ads for MW2. ATVI's XMas sales are going to shock everyone when they eventually come out.

2010 is going to be incredible too for ATVI, with WoW Cataclysm, StarCraft2 (release H2 2010), Singularity, and new iterations for Hero, Tony, CoD.

New MMO (not WoW sequel) from Blizz down the line.

In short - you want to be invested here for the long run. Future for ATVI is really bright. This call was good for ATVI but also for the entire industry, including TTWO.

MW2 will break all launch records for an entertainment property. This only demonstrates the opportunity TTWO has with GTA V, which will be launched into an installed base of consoles that is at least 5M larger than that of MW2. GTA V would be the all-time Godzilla of video games when it comes out.

Ultra bullish,

MT7