Video game makers predict jingle bells at registers

"The question is the person who is a little more marginal, the person who is new to gaming and is not as interested in video gaming," he said. "That's where I think there is greater potential for risk."

The slump in consumer spending will hurt some game makers, particularly those lacking major hits, analysts have said.

For example, THQ Inc posted a dismal third-quarter earnings report last week and cut jobs, canceled some games and said it plans to retool.

Strauss Zelnick, executive chairman of Take-Two Interactive Software Inc, maker of the blockbuster "Grand Theft Auto" series, said overall holiday shopping "doesn't look very promising" for those who do not have huge hits on the shelves.

"I'm concerned that it's going to be a pretty rough holiday season," he said. "Everyone's going to be shopping less. First you are going to see less foot traffic and then less inventory on the shelves."

Peter Moore, president of Electronic Arts Inc's EA Sports unit, which makes the popular title "Madden NFL," also voiced "cautious optimism."

"We are entering uncharted water from an economic standpoint," he said. "We are holding our breath and hoping the consumer comes out to play."

On Nasdaq, EA rose 7.08 percent to close at $22.22, while Take-Two fell 1.02 percent to $10.69.

(Reporting by Franklin Paul; editing by Andre Grenon, Richard Chang)