"While overall sales growth was negative, implying that the consumer is beginning to feel the effects of the economic downturn, it was above most expectations, with solid hardware sales implying continued software sales strength through the holidays," says Wedbush Morgan's Michael Pachter.

"We expect October software sales to be solidly higher than last year’s, and believe that any perceptions of consumer weakness caused by the September data will be reversed next month."

Lazard Capital Markets' Colin Sebastian agrees that industry sales will pick up again in October, thanks to more Wii supplies, Xbox 360 price cuts and a strong lineup of releases for the month. The analyst pegs EA, Activision and Ubisoft as the likely leaders, expecting EA's Rock Band 2 and Left 4 Dead; Activision Blizzard's Wrath of the Lich King and Guitar Hero; and Ubi's Prince of Persia and Far Cry 2 to be among the month's winners.

Cowen Group analyst Doug Creutz says that as far as his firm's concerned, September NPD actually exceeded bleak expectations, and the results should "allay investor concerns."

Does this look down to you?

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