I don't have to tell you how utterly, unbelievably, unequivocally popular Activision's (NASDAQ: ATVI) Guitar Hero game is. It's currently selling tons of units on the Nintendo (OTC: NTDOY) Wii, the Microsoft (NASDAQ: MSFT) Xbox 360 and the Sony (NYSE: SNE) PlayStation platforms. It's too tough for me to play, but legions of others are having a grand old time living out their rock-and-roll fantasies.

I've been wondering for a while now if the DS would ever get a Guitar Hero game. Let's be honest -- all of us know several kids and/or adults who own one of these handhelds; they're like everywhere (and, yes, I want one too, to be frank, although I hate small game devices). I was thinking that Activision was leaving a lot of money on the table by not programming a version for Nintendo's handheld. But then I thought that a DS version would be like an insult to the image of the franchise -- how could a developer possibly capture the feel of the console iterations on the little DS? Didn't make sense to me, so I figured we'd never see a DS version.

As I've said before, I love reading the monthly videogame sales stats from marketing research outfit NPD. February was yet another nice month for the industry. Software continues to move off retail shelves at a robust clip; sales in this department were up 47% year-over-year last month.

Activision (NASDAQ: ATVI) and its incredible Call of Duty 4 title -- yes, I am an Activision shareholder and will probably promote any of its games to my friends and acquaintances, but if you think I'm wrong on this one, go check it out for yourself, it does rule something fierce -- continued its reign at number one, selling 296,000 discs. Activision also did well with Guitar Hero III for the Nintendo (OTC: NTDOY) Wii, selling 222,000 copies of the game. Rock Band, the music game from Electronic Arts (NASDAQ: ERTS), did well on Microsoft's (NASDAQ: MSFT) Xbox 360 -- over 160,000 rockers heeded the call to play some classic tunes.

As one might expect, the Wii sold the most consoles in February. Sony (NYSE: SNE) came in second with its PlayStation 3 unit, and the Xbox 360 was third. Microsoft says a shortage of systems hurt the company; I don't doubt that claim, the 360 did seem a bit hard to come by at some retail channels last month. But it'll be back in competitive mode in the coming months, I'm sure, making certain that Sony doesn't rest on its laurels. I expect sales for software to continue doing well, and just wait till the next holiday season -- I agree, it's too early to be talking about that, but it'll be here before you know it., and I expect it will be another banner selling period. And I can't wait to see what software title will be on top for the current month -- Super Smash Bros. Brawl for the Wii came out this past Sunday, keep in mind. If you told me you haven't heard of this title, I'd be surprised -- it really was the story of the week (or, should that be wiik; stupid pun, gotcha). A couple of GameStop (NYSE: GME) locations in my area held some tournaments, and from what I heard, they were quite lively.

Disclosure: Steven Mallas owns shares of Activision; positions can change at any time.

Midway Games (NYSE: MWY), a competitor of videogame publishers such as Activision (NYSE: ATVI), Electronic Arts (NASDAQ: ERTS), THQ (NASDAQ: THQI), and Take-Two (NASDAQ: TTWO), reported earnings on Thursday for the fourth quarter. They weren't good. Net revenues went down by 20%, and the loss widened to 33 cents per share versus a loss of 2 cents per share in the year-ago period. For the full year, net revenues declined 5%, and the loss widened to $1.07 per share versus a loss of 86 cents per share in 2006. Even on an adjusted basis, the losses were larger than before.

I've been following Midway for a long time, and I have to say that I just don't think the publisher's stock is worth anyone's time right now. Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY) all have their new consoles out -- PlayStation 3, Xbox 360, and Wii, respectively -- so Midway, if it were executing properly, should have been able to take advantage of them. It hasn't.

I see nothing in the release that indicates a positive catalyst is on the horizon for Midway and/or its stock. It's a cool publisher with some fun games, but I won't be buying its thesis -- if there is one -- anytime soon. I'll stick with my Activision shares, and I'd urge others to look at an EA, or even a THQ, for possible value.

Disclosure: Steven Mallas own shares of Activision; positions can change at any time.

Videogame sales data are in for the month of January. I love it when we get the monthly numbers on electronic gaming; it's always fun to see which of the big three -- Microsoft (NASDAQ: MSFT), Sony (NYSE: SNE), or Nintendo (OTC: NTDOY) -- are on top.

Well, as you can guess, the Nintendo Wii was number one yet again, selling 274,000 consoles last month, according to data released last week by marketing research firm NPD. The PlayStation 3 wasn't far behind with 269,000 units sold. The Xbox 360 was in the undesirable third position, moving only 230,000 of its next-generation system. Microsoft has stated that shortages of its popular product contributed to the disappointing showing. On an anecdotal basis, I know that the Xbox 360 with the hard drive, at least in my area, was indeed absent from many retail shelves as of late.

It was nice to see the PlayStation 3 have a good month. And you have to wonder how long the Wii will stay on top -- there seems to be no end to its momentum, but everyone really wants to see how it performs when there's finally enough supply of the fun devices in the marketplace (if you've never played the Wii, take my word for it -- it really is fun). Plus, what happens when all three of the new consoles move toward price parity? Will the power of the PS3 suddenly trump the innovative DNA of the Wii? Watching the evolution of the sales dynamic of all three systems will be almost as diverting as shooting up the mutant beasts in Resident Evil 4.

Although consumer electronics retailer Circuit City Stores, Inc. (NYSE: CC) is teetering on the brink of a buyout or doomed to failure, at least some areas of it appear promising. This time around, the company has announced that it will get involved with the used video game industry. You heard that right.

Instead of focusing efforts on trying to improve its retail competitive position and somehow out-maneuver competitor Best Buy, Inc. (NYSE: BBY), Circuit City will position itself as a sort of flea market. It's true that the used video game industry is chalked up at a $1.5 billion-a-year industry, that's a niche currently being filled by game specialty retailers like GameStop Corp. (NYSE: GME) and eBay. But this move is a sign that Circuit City is willing to do something -- anything -- to revitalize any product category that it can.

If Circuit City can really make this effort stick, then it may succeed in actually getting more shoppers in the doors. But video game buyers and traders are a fickle lot and will instantly sense if the retailer's pricing, availability and breadth of titles are going to give the competition a run for the used-video-game money, or if this is just another ploy to improve traffic numbers (as some of these customers will invariably shop for more than video games).

Steven Spielberg is, let's face it, one of the most creative guys on the planet, and he's been responsible for some of my most treasured memories at the local multiplex -- who didn't love watching Indiana Jones ride off into the sunset at the conclusion of Indiana Jones and the Last Crusade or viewing couch-jumping Tom Cruise race through a futuristic setting to prove his innocence in Minority Report? The guy is a genius; he also loves videogames. And Electronic Arts (NASDAQ: ERTS) has teamed up with him to develop entertainment software in a bid to differentiate its lineup from the competitive likes of Activision (NASDAQ: ATVI), THQ (NASDAQ: THQI) and Take-Two (NASDAQ: TTWO).

I just read the press release announcing the game he helped create for the Nintendo Wii. It's due out this summer, and it's called BOOM BLOX. I have to be honest and say that I'm not sure exactly what to expect. It has something to do with puzzle combinations, building block structures up and then knocking them down, crazy characters like monkeys who throw baseballs around for one reason or another, etc. Oh, and there are chickens and haunted places, and there are hundreds of levels. Sounds confusing?

I'm confused, but I'm sure if I do a little Googling, I can figure out what's up with this title. The Nintendo Wii is pretty hot right now, as if I had to tell you, and I think a game with the Spielberg brand may sell well for EA. Spielberg is due to deliver two more games for EA. There's no guarantee they'll move copies just because he's involved in their development, but EA having access to his intellectual artistry certainly can't hurt. The publisher will definitely have to do some savvy marketing to ensure that not-with-it folks like myself know exactly what to expect from this game -- the press release claims I'll be addicted, and who's to say I won't be?

Disclosure: Steven Mallas owns Activision and Take-Two, and is looking at a possible buy of Nintendo after this post. Believe it or not, he actually owns the E.T. game for the Atari 2600 (how old-school is that).

As the holidays loom, not to mention the end of the quarter, here are some highlights of this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) posted solid Q4 results, but left its guidance unchanged.
• Bear Stearns Cos. (NYSE: BSC) swung to a loss, another victim of the subprime mortgage mess.
• Best Buy Inc. (NYSE: BBY) beat estimates in part on sales of the Nintendo Wii and flat-panel TVs.
• CarMax Inc.'s (NYSE: KMX) net earnings declined, and the company lowered its guidance.
• Circuit City Stores (NYSE: CC) posted another disappointing quarter on "transformation" woes.
• Darden Restaurants Inc.'s (NYSE: DRI) Q2 profits fell, leading the share price to a one-year low.
• FedEx Corp. (NYSE: FDX) beat low expectations, boosted in part by international growth.
• Goldman Sachs Group (NYSE: GS) beat estimates, but not enough to impress investors.
• Herman Miller Inc. (NASDAQ: MLHR) beat estimates despite restructuring and the soft economy.
• Hovnanian Enterprises Inc.'s (NYSE: HOV) dismal results had wide-ranging effects.
• Jabil Circuit Inc. (NYSE: JBL) posted a solid quarter but lowered its outlook due to coming restructuring.
• Martek Biosciences Corp. (NASDAQ: MATK) beat expectations and raised its guidance.
• Morgan Stanley (NYSE: MS) posted worse-than-expected quarter and full-year results.
• Oracle Corp. (NASDAQ: ORCL) beat expectations on the strength of software upgrades.
• Palm Inc. (NASDAQ: PALM), reported a Q2 loss and lowered its guidance for the current quarter.
• Red Hat Inc.'s (NYSE: RHT) earnings were in line with expectations, but it raised its outlook.
• Research in Motion Ltd. (NASDAQ: RIMM) posted a solid quarter and raised its guidance.
• Take Two Interactive (NASDAQ: TTWO) warned of a higher-than-expected loss for the first quarter.
• TD Ameritrade Holding Corp. (NASDAQ: AMTD) raised its outlook for first quarter earnings.
• Walgreen Co. (NYSE: WAG) posted a solid quarter on strong sales and cost controls.

As Doug wrote on a few weeks ago, there is a theory running in the retail arena right now that says Nintendo is engineering a U.S. shortage of its hugely popular Wii gaming console to create even more demand for the gaming system as the holiday shopping season hits its apex this weekend. Right now, Wii consoles sell out almost immediately as soon as stock arrives at national retailers who carry the system, and Wiis are going for $450 and up on eBay (NASDAQ: EBAY). Supply and demand, baby.

Yet, Nintendo is set to lose a huge amount of revenue by creating a shortfall in nationwide Wii inventory amounts. Its recent partnership with leading game retailer GameStop will "promise" a Wii by the end of January to anyone who pre-pays for the console. Will that light up the face of a few hundred thousand kids who receive a rain check under the Christmas tree? Please.

But then, some analysts are questioning whether Nintendo is actually creating its own Wii shortage after all. In fact, the Japanese game company stands to lose almost a billion (with a "b") in holiday sales by not having enough Wii consoles to go around this holiday season. If that figure is anywhere near correct, engineering a shortage of the uber-popular gaming system to create even more demand hype can't even begin to compare to the monetary losses Nintendo may be facing by not having correctly anticipated the Wii's consumer demand. Although any company would love to have the problem of a hot product that's impossible to keep on shelves, this may not be the case for Nintendo this year.

According to November sales figures just released, the Nintendo Co. Ltd. (OTC: NTDOY) Wii gaming console was outsold in Japan by the much pricier PlayStation 3 game console made by Sony Corp. (NYSE: SNE). The exact opposite has been happening in the U.S. market for the entire year of 2007, but it did take Sony until the later part of the year to surpass Wii sales. Will it last in Japan?

This research comes from market research firm Enterbrain, which said that the PlayStation 3 outsold the Wii in the last three weeks of November. What this indicates is that Sony's new push into a lower-priced entry for the PlayStation 3 may in fact be helping it bring in sales.

Pricing moves seem to always do this when it comes to consumer electronics. In October, Sony cut the PlayStation 3 price and then followed up that welcomed move with a new bundle in November that brought the price down to under $400. With the holiday season in full swing, this was timed perfectly, although even the newer PlayStation 3 price is way ahead of the $250 price of the Wii.

While the Nintendo Wii sold over 150,000 consoles in November, the PlayStation 3 has totaled over 183,000 unit sales so far. In third place was the Microsoft Xbox 360, which has sold over 35,000 consoles in Japan through the end of November.

This post was part of AOL Money & Finance's Best & Worst of 2007 feature. The voting has now closed and readers have chosen Apple's iPhone as the hottest gadget of the year. Be sure and let us know in the comments if you are pleased with this result.

2007 was definitely the year of the gadget. Every year, personal electronics get sleeker, attain more cutting-edge technology and functionality, and make their way into the the pockets and homes of millions of consumers. So, let's decide on which one was the biggest hitter this year, shall we?

First up, the Apple iPhone. Arguable the largest and most anticipated cell phone launch in history was in the news constantly form its January announcement until its June launch with partner AT&T Inc. (NYSE: T). Apple Inc. (NASDAQ: APPL) shined again as a marketing machine and hyped the iPhone as much as it could while tech blogs and the news media seemed to have a lust for the device months before it ever hit a single hand. What the iPhone lacked in features it made up for in style and user experience. The device sold more than a million units in the first three months it was sold, and has helped Apple maintain its aura as the coolest tech company on the planet this year.

Next, we have the Nintendo Wii. This $250 gaming system is the size of a large hardback book but has great graphics and a whole new way to play games. It's not nearly as cutting edge as the Sony PlayStation 3 or Microsoft Xbox 360, but that's not what it's about. The Wii was meant for everyone (not just gamers), and the way it makes players physically interact with games has been hailed as brilliant. Consumers think so too, as the Wii has outsold the Xbox 360 almost every single month in 2007, and is way ahead of the more expensive PlayStation 3 in unit sales as well.

This post is part of our Hottest Products of 2007 feature. Also check out our other Hottest Products of 2007 posts and let us know which product you think is the greatest thing since sliced bread.

Nintendo (OTC: NTDOY)'s Wii gaming console was a non-contender -- an underdog -- this time last year. The gaming console with the funny name was set to launch with little fanfare compared to the Sony Corp. (NYSE: SNE) PlayStation 3 or Microsoft (NASDAQ: MSFT)'s Xbox 360, launched a year earlier, but the Wii caught eyes because it was priced at only $250, compared to $600 for the PlayStation 3 and $400 for the Xbox 360. But then again, it had inferior graphics and other downgrades. My, my -- how customers didn't care about its competitors' touted features and other fluff.

Why not, you ask? The Nintendo Wii featured the most innovative and immersive gameplay, regardless of the hi-def video or audio output and inferior graphics. Nintendo figured out that consumers wanted a newer kind of gameplay -- not photo-realistic blood and guts. As an aside, they designed the initial games and many others to get game players off those duffs and onto their feet, wildly slinging those Wii-motes through the air -- swatting tennis balls, slaying dragons and driving cars. The mass, mainstream consumer loved it, and so the age of Wii was born.

Looks like Best Buy, Inc. (NYSE: BBY) may be facing the short end of the consumer stick soon, as Consumerist reports. Customers in the New Jersey area apparently found out that some Best Buy employees were egging more sales of the Nintendo Wii by performing some amateur theatrics in those retail aisles. If the below is true, Best Buy will be taking a small PR hit here.

Specifically, the old "this is the last one" tactic was being used to goad more consumers to buy (and not 'think about' buying) the Nintendo Wii console as the holiday shopping season continues into mid-November. After all, with the Wii so hot in the news regarding shortages, would s Best Buy employee telling you that "this is the last one" make you buy the 'last' remaining box on the shelf? Sure it would.

The only thing is that as soon as customers left the store, that empty Wii spot was being replenished with another unit -- there was no "out of stock" situation happening there. In this case, Best Buy employees were roaming the public aisles every so often, stating that the Wii perched on top of their head was the "last unit." Later on, the tactic was used again and again. Is this good marketing or a snake-oil way to sell a gaming console as much as possible?

In light of the upcoming and lower-priced xbox 360 arcade gaming package from Microsoft Corp. (NASDAQ: MSFT), competitor Nintendo Ltd. (OTC: NTDOY) said today that there will be no price cuts on its ultra-popular Wii gaming console, and that the Wii will go on sale in China sometime in 2008. Microsoft's new offering is possibly set to challenge the $250 price of the Wii, as it takes its own package price down to $280 and intros several new family-friendly gaming titles as well. That's a great move, but I have a hard time believing that the Wii will face a serious challenge due to the move.

In addition to seeing a huge growth in profits for its latest quarter, Nintendo President Satoru Iwata said that a new "give a gift" feature is coming to the Wii, where games can be sent from one Wii to another over the net. Somehow, the Japanese gaming giant has found a way to make its gaming console the hit it needed, as competitive gaming consoles came in at much higher prices and with too much capability. Nintendo went for the mass public with the Wii, and it got it (and then some).

Iwata continued on to say that the demand for the Wii was still outstripping supply, which is a precarious position for any consumer goods manufacturer. As expected, he also announced no price cut for the holiday selling season. With the Wii being so hot still, of course it makes sense to not lower prices. Although the company is whipping out 1.8 million consoles per month, it may indeed face a holiday crunch in November moving into December if those numbers don't satiate global demand.

Nintendo's Wii has been the big success of the latest generation of video game consoles. Microsoft's (NASDAQ: MSFT) Xbox 360 is making up some ground with the success of Halo 3. As Doug McIntyre recently wrote, its first week sales of over $300 million could "pull the Xbox 360 out of the mud."

But where does all of this leave Sony Corp. (NYSE: SNE)? Probably nowhere good. With Wii already having established itself as the big winner and Microsoft making a late push toward success, Sony would appear to be the odd man out.

But BusinessWeek interviewed Kazuo Hirai, the marketing man in charge of the PlayStation 3, about how the company is looking to right the ship. He was predictably optimistic, saying that the company would be releasing a lot more games over the next few months, and really emphasizing the PS3 as a gaming system, whereas before, it was marketed as a sort of all in one entertainment system -- obviously that strategy didn't work.

So far the PlayStation 3 has created staggering losses for Sony, and a price-cut will probably be necessary if the machine has any chance. But whatever Sony does, it may be too late.

In a sign of just how bad things are for Microsoft (NASDAQ: MSFT)'s Xbox 360 and the Sony (NYSE: SNE) PS3, Nintendo has now passed every Japanese company except Toyota (NYSE: TM) to become the No.2 firm there in terms of market cap. According to the FT: "Many analysts feel Nintendo is still not overvalued, in spite of its high share price. The company is known to be conservative in its profit forecasts, and foreign exchange rates in the US and Europe are expected to give its bottom line a boost."

But, it is bizarre that Nintendo would now be ahead of companies like Toshiba and cell phone company KDDI.

It is a measure of just how large investors believe that the game console market is becoming. Nintendo's Wii outpaces sales of Xbox and PS3 in virtually every region around the world. Like PCs and automobiles, Wall Street must assume the gaming will move into fast-growing regions like China and India. In other words, Nintendo's sales could continue to move up fairly rapidly for several years.

If things go well, perhaps Nintendo can buy Sony.

Douglas A. McIntyre is a partner at 24/7 Wall St.