Game Points: Game Console and Software Stock Update

Key points from Kaufman Bros. analyst Todd Mitchell's recent note to clients (for a full-length version of this report, click here).

Activision (ATVI) says it will double its Nintendo (NTDOY.PK) SKU count in fiscal 2008. Activision said it will have 60 SKU in fiscal 2008, up from 48 in fiscal 2007, and that it will double its SKU count for Nintendo Wii and DS. Guitar Hero will be released for the Wii and DS in fiscal 2008. There will also be Wii and DS versions of Spider-Man 3, Shrek and Transformers. Activision confirmed new iterations of Call of Duty, Tony Hawk and Guitar Hero. A PS2 version of Downhill Jam, Guitar Hero II on X360, and Quake Wars: Enemy Territory on PC are expected to be released in fiscal 1Q08. Spider-Man 3, Shrek the Third and Transformers will also be released in fiscal 1Q08.

Take-Two (TTWO) will release another GTA for the PS2 before next-gen launch. Take-Two announced that Grand Theft Auto: Vice City Stories will be released on PS2 in North America on March 6 and in Europe on March 9. No price was given, but it is expected to be $19.99. This is the second GTA PSP port. Manhunt 2 will be Rockstar's first Wii title. Take-Two said the game will be released on PS2, PSP, and Wii this summer. Being developed in several Rockstar studios, the stealth action game will be Rockstar's first title on the Wii.

Ubisoft (UBI) is expanding in Canada with new CGI production center. The new center will focus on creating digital cinema content and short films based on Ubisoft brands and create around 1,000 new video game jobs. One of the first films would be an eight-minute CGI short based on Assassin's Creed. Ubisoft looks to have 500 specialists in the studio by 2013. Ubisoft could invest an additional $383.9 million over the next six years and build up a team of 3,000 total employees by 2013.

Epic reveals $150 million Gears of War (X360) cost $9 million to $10 million. As of January 19, the game had sold three million copies worldwide for revenues approaching the $150 million range. Epic Games did not reveal the game's marketing costs. Costs were kept low, due to Epic Games' game engine, Unreal Engine 3. While using Unreal Engine 3 is possible for the Wii, it was designed for next-gen HD platforms.

EA's (ERTS) Half-Life 2: Episode Two games pushed back to fall 2007. The Orange Box includes the original Half-Life 2, Episodes One and Two, Team Fortress 2, and Portal for PC, X360, and PS3 and will be the only Half-Life 2 game offered for the two consoles at retail. The Black Box includes Half-Life 2: Episode Two, Team Fortress 2, and Portal for PC.

Sony's (SNE) PS3 firmware updated to 1.51. The update adds a few minor fixes such as more support for PS2 software titles and the ability to use your photos as a user icon. Sony confirmed Wipeout is in development for the PS3. More details regarding the game are expected in the near future.

Wii outsells the PS3 almost 3:1 in Japan. Enterbrain reported 405,000 Wiis and 148,000 PS3s were sold in January, brining total sales for the Wii and PS3 at 1.4 million and 614,000, respectively.