I read an article on CNNMoney.com the other day about video games. The author mentioned that Microsoft
Yet here's an interesting tidbit. I was watching a pundit pontificating on the market earlier in the week, and this particular guy seemed unimpressed with the video game software sector. He said he was bearish on the whole group and would sell them all; can't recall the exact reason -- it might have been valuation -- but as we all know, there's a bear side to every argument, and he was taking it.
I don't really care what his reason was; he has a right to express it, and I will now exercise my right to offer the bull argument for video game stocks: See first paragraph.
That's right. Listen -- video games are here to stay, and they are going to grow over the long term. I simply have strong confidence in that idea. Revenues will ebb and flow through the years. But, as far as I am concerned, stocks in sound companies like Activision
Whenever I think about the next Xbox, the new Nintendo machine, or the third iteration of Sony's
Yet I still can't help agreeing with Rick Munarriz that any dip in the share price of a company like EA can only be a good thing for a patient investor who averages in over the long haul. And consider that Microsoft, Sony, and Nintendo have obvious reasons for making each successive system push the envelope ever further than its predecessor; in this way, the video game will increase its cultural status.
Going back to the pundit, I agree that the reality on Wall Street dictates that certain time periods offer trading opportunities for those who wish to engage in the activity. But for those who prefer long-term, buy-and-hold investing, it's a treat when one stumbles upon a set of ideas that should prove resilient over the years. Video game companies can comprise such a set of ideas. With the new Xbox on its way, investors should begin their own studies of the public concerns in this arena.
More Foolish articles on video game companies:
Fool contributor Steven Mallas owns none of the companies mentioned.