The games industry is likely to experience more modest growth than has been predicted, according to Wedbush Morgan analyst Michael Pachter.

He went on to state, "I think 2007 will be sloppy. It will start out quite strong, due to the PS3 and Wii supply situation being fixed in the US and the PS3 launch in Europe".

Pachter goes on to claim that the summer will be slow for software sales, as is normal, but mainly due to large figures from 2006 and high prices on newly released consoles. "I think that the PS3 and the Xbox 360 will continue to sell very slowly during the summer, because at the price, they are no longer an impulse purchase."

Things should pick up in the autumn, however, with an increase of around 15% likely during November and December. He also believes that hardware sales are likely to be higher at Christmas than previous years, and will continue to grow in 2008 due to HDTV. "Once that many households have HD, PS3 and 360 sales should pick up dramatically, and software sales will grow as well."

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