Question-and-Answer Session
Operator
(Operator Instructions) And we’ll take our first question from Edward Urban with Bear Stearns.
Edward Urban - Bear Stearns
Thanks. Good afternoon. I was wondering if you could talk about what you are seeing currently with the development of PS3 SKUs and if you think there is an inflection point in hardware, what you are looking for in that regard?
And then also, I was just wondering if you could update us on the development of the Spielberg Wii title, and is that still anticipated for fiscal ’08?
John S. Riccitiello
In terms of an inflection for PS3, what we would be looking for more than anything is increased hardware sell-through, which is going to be pricing driven and title driven. And frankly, I think I would rather give you an answer to that question with more specificity after the Thanksgiving holiday where we see where the hardware picks up.
But as we’ve said many times in the past, we remain supremely confident that this is a three-horse race and it’s going to end up with each of the three principal platforms on next gen -- the PS3, Xbox 360, and Wii being strong.
So in sum, I think what I’m telling you is I am seeing an inflection point but it is not a sharp corner. It is one that we are going to be watching carefully between our Christmas quarter and the first quarter of next year.
In terms of the Wii title from the Spielberg partnership, that’s shipping in Q4.
Edward Urban - Bear Stearns
Okay, great. Thanks.
Operator
We’ll take our next question from John Taylor with Arcadia Investments.
John Taylor - Arcadia
I was wondering if you might be able to give us a ranking or some kind of priority of some of the factors that are reflected in your increased confidence. I guess a couple of things I might throw out there -- are you seeing next gen grow faster than you thought? Is it Nintendo driven? Is it co-publishing business or is it maybe a lesser erosion rate on the legacy systems? Maybe give us a sense of where those things are coming in relative to your expectation. Thank.
John S. Riccitiello
A lot of different things there. That could be a novel rather than a short answer. Industry in general I would say is performing relatively in line with our expectations but a little bit strong, and as Warren mentioned in his opening remarks, we trace most of that optimism for sector growth to Nintendo.
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