The past few days haven't been kind to video game developers. Industry watcher Gamasutra is reporting that THQ
The news comes just days after Electronic Arts
Video gaming seemed as if it would be able to scrape by in this dicey environment. GameStop
Steep console price cuts from Microsoft
However, the industry is clearly worried. Two major players don't begin hacking at their payrolls if they want to flood the market with new games over the next few quarters. The trend will be more problematic if Activision Blizzard
Until GameStop's comps start slipping or the companies behind this year's winning titles -- Activision and Take-Two among them -- begin watering down expectations, we can view the THQ and EA layoffs as isolated events.
Activision Blizzard, don't fail us now.
Other games to play:
Microsoft is a Motley Fool Inside Value pick. Take-Two Interactive Software is a Motley Fool Rule Breakers recommendation. GameStop, Electronic Arts, and Activision Blizzard are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz knows that his household can't be blamed for the industry's weakness. He owns no shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.