Lazard predicts 30 per cent increase in September software sales

Ahead of the monthly NPD Group data, Lazard Capital Markets analyst Colin Sebastian predicts a 30 per cent increase in software sales.

The increase was largely driven by Halo 3, which surpassed USD 300 million from its September 25 launch date through early October.

Sebastian also expects higher Xbox 360 hardware sales in September boosted by both Halo 3 and price cuts. At the same time, Wii sales are likely to reflect supply constraints, while the PlayStation 3 sales are not expected to increase absent a hardware discount or introduction of a new SKU.

The Lazard anaylst gave "buy" recommendations for Activision, Electronic Arts, THQ, and GameStop, although he had different growth estimates for each. THQ sales are expected to be down year-over-year, due to the sales of Saints Row last September, while EA sales are expected to be flat from last year

Activision sales, however, are expected to be up 100 per cent year-over-year due to poor performance in 2006 as well as solid sales of Guitar Hero titles.