We believe that Midway's recent share-price weakness is more attributable to a slow down in purchases by its major shareholder than to a downturn in its business.

We believe that January sales may have been even worse had Microsoft continued its marketing push, and believe that sell through was helped in part by deep discounting of new releases during the month. January marked the fifth consecutive month of software sales decline, and we expect a return to double-digit sales declines in February, with an accelerating rate of decline in March.

We do not believe that recent weakness will persist, and expect a sales rebound in November and December.

There are 5 million people who really believe they are getting an Xbox 360 relatively soon, by February. Microsoft has shipped 500,000 units, so 4.5 million people are doing nothing. That's enough to just kill Christmas.