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Young folks everywhere are feeling that little depressing sensation in the pit of their stomachs. Yep, it's time again for summer to end and school to begin.
It's not so bad; learning is awesome. But video games are awesome, too. In fact, kids everywhere are probably enjoying some last-minute gaming bouts before the dreaded homework sessions settle in.
I played my old Nintendo Entertainment System and Sega Genesis console through college. I'm old school to the core, more at home with blocky 2-D sprites as opposed to the incredible 3-D stuff seen on the new Sony
What does the landscape look like now? Technology's come a long, long way, and games are more like interactive movies. Here are three companies leading the charge: Activision
At the head of the class is Activision. Sure, it doesn't have the Madden franchise that Electronic Arts
I confess I've got a soft spot in my heart for Activision. I grew up on this company's games for the Atari 2600; Pitfall! was a great cartridge, as were Stampede and Starmaster. Programmers like David Crane and Alan Miller were ahead of their time, and they crunched 2600 code like it was going out of style. Activision may no longer have one-person development teams, but it still produces top-notch software.
THQ is not to be underestimated. It has a prosperous licensing program with Viacom's Nickelodeon characters and Disney's
Investing in publishers is a great way to make money from the video game industry, and you should definitely consider Nintendo for your portfolio. Every kid on the block will need a Nintendo Wii for winding down after a rough day at school. Hands down, the Wii and the Nintendo DS are flying off the shelves faster than their console colleagues, and consumers are snapping up a lot of software to go with them (if they can find it). The Wii is attracting casual gamers like crazy, and it's bringing in a lot of female players. I imagine a lot of school romances will begin with a session of Mario Party 8.
While everyone is thinking wireless these days, I fondly look back on my old Atari joysticks and paddle controls. Some things have changed, but one thing's for sure -- students everywhere should study companies like these and see whether they are appropriate for their investment portfolios.
Brush up on your Foolish knowledge of video games:
Yes, the Fool loves video games. Activision, Electronic Arts, and Nintendo are all proud members of the Motley Fool Stock Advisor recommendation list. Sign up for a free 30-day trial of the service with no obligation whatsoever. The Gardner brothers can help you construct a long-term, wealth-building portfolio. Microsoft is a member of the Motley Fool Inside Value portfolio.
Fool contributor Steven Mallas owns shares of Activision, Disney, and Nintendo. He is currently playing "Monster House" for the Gameboy Advance. As of this writing, he was ranked 12,664 out of more than 60,000 investors in the CAPS system. Don't know what CAPS is? Check it out. The Fool has a disclosure policy.