"Michael Pachter" is a video game, social media, digital media and electronics analyst with Wedbush Securities. He is also the Head of Research for the Private Shares Group, a Wedbush division which focuses on companies which have not yet gone public such as Facebook (pre-IPO) and Twitter. Pachter has an MBA & two law degrees. Pachter worked for 16 years at Arco (toy company)/Arco where he was Arco's director of strategic planning until mid-1998.

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I don't know where he came up with 20 million.

It will limit the success if they're not materially better than the current-generation games. The analogy is, do you buy a new PC if you don't have a reason to? You just don't do it.

We expect modest growth in November and dramatic growth in December.

The earlier movers aren't making a decision between the two.

[As such,] only one in 16 people need to rent an extra movie in the new extended rental period to offset the late-fee loss, and that's not that hard to get, ... When you let people rent for seven days instead of two, the consumer tends to grab the extra movie.

The stock is getting hammered because investors are reacting like this is the next step to bankruptcy when in fact I think meeting with the banks is a good thing. Renegotiating the covenant is a positive because it means they won't be forced into bankruptcy.

If they paid more than $200 million, then I seriously question their judgment.

Take-Two is cheap and Atari is really cheap. Investors mistakenly look at the group as either being big and going to thrive or small and going to go broke.