While it may seem the result of overly simple math to conclude that when the game industry is strong, everyone in the value chain benefits, sometimes these things must be said. Today, Wedbush Morgan Securities financial analyst Michael Pachter delivered a memo to investors in anticipation of GameStop's second-quarter earnings--and according to Pachter, things look fine for the Grapevine, Texas, retailer.

　　Pachter reiterated his Strong Buy rating for the stock, and said he expects the company to report "solid results" for the October quarter. "Our forecast is for revenues of $1.018 billion, same store sales of +6 percent...and we think that there is comp upside to as much as 9 percent."

　　Pachter's confidence in the stock is a reflection of the store being in the right place at the right time: "We think that GameStop is a destination for 'new stuff,' and note that console manufacturers and video game publishers will roll out an unprecedented amount of new merchandise over the next several quarters."

　　Not that everything is rosy for the retailer. GameStop this week reported receiving fewer PlayStation 3 consoles than originally expected, and in addition to shortages of the PS3, several GameStop stores were the scenes of crimes committed by those intent on securing the Sony console through force.

　　Pachter said that regardless of how well the retailer does in the immediate future, the X factor that could derail continued revenue growth is simple: uncertainty about quantities and allocations of next-gen hardware past this current launch weekend.

　　GameStop, which last year acquired EB Games to become the largest specialty retailer of games in the world--it has approximately 3,600 locations in the US alone--reports earnings next week.