industry news
Wall Street Rebounds, Takes Game Stocks With It
Posted by Luke Plunkett at 8:30 PM on October 1, 2008
Yesterday, Wall Street crashed. Took a lot of gaming industry money with it. Today, though, the market's rebounded, and whaddya know, that rebound took a lot of gaming industry money with it! Blactivision lost $2.26 (per share) yesterday, but clawed back $1.31 today. EA lost $3.63 yesterday, but at the sounding of the bell today, had won back $0.99. The gains weren't restricted to Wall Street, either; Ubisoft shares were up €7.25 having dropped €12.47 yesterday. Such chaos. Such unpredictability. Lucky we can't understand choose not to play the stock market!
Game stocks regain ground in market rally [GameSpot]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
CaptBlues
Posted 9:05 PM 1/10/08
@noliferuin (PSN+XBL):
It just makes me think of blackulas
CaptBlues
noliferuin (PSN+XBL)
Posted 8:59 PM 1/10/08
blactivision? has william h. marshall taken them over or something?
noliferuin (PSN+XBL)
Acebuckeye13
Posted 8:51 PM 1/10/08
Remember, Europe and Asia, If we go down, we're taking you with us.
In other news, have you heard about those Somali Pirates that hijacked a frighter carrying TANKS? I know it's irrelevent, but it still boggles the mind.
[news.bbc.co.uk]
Acebuckeye13
tmsoftworks
Posted 8:36 PM 1/10/08
Yeah I mean there have been many editorials regarding gaming as being the new outlet for cost effective entertainment. They are a sound investment.
Honestly in a time like this, buying is a good idea. Either the economy is going to rebound and you will have gotten some major leauge deals and be on the path to wealth, or the markets crash and its game over for the world.
tmsoftworks
sander_dutch
Posted 9:31 PM 1/10/08
I would say now is quite a good time to buy, as these stocks will only grow in the long term.
If you invest for short term profits (speculate) I guess you have grey hair now
sander_dutch
SansSanity
Posted 9:28 PM 1/10/08
@tmsoftworks: I agree, I have recommending buying game stocks to everyone. Gaming is going to be the biggest entertainment industry by 2012
SansSanity
muu
Posted 9:18 PM 1/10/08
It's a rebound with the assumption being that the house actually PASSES something this time around. Reading through some news comments it's fucking amazing how many people think they can 'get through it' after a market collapse. Then again, maybe that representation isn't completely unfounded considering the huge number of Americans in debt. 401K? College savings??? L O L!
muu
Thoas
Posted 9:57 PM 1/10/08
Gordon Gekko: The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it. You've got that killer instinct. Stick around pal, I've still got a lot to teach you.
Thoas
Razgriz1
Posted 9:57 PM 1/10/08
@badasscat: Considering how poorly things were going Monday, yes, it's a hell of a rebound.
Razgriz1
badasscat
Posted 9:42 PM 1/10/08
So the three stocks mentioned in the post regained an average of about 35% of their lost value, and that's a "rebound"?
That's worse than the average for the overall market. That should tell you something about how sound these investments are.
badasscat
Kuririn
Posted 10:33 PM 1/10/08
@Acebuckeye13: yep heard about it.....is it just me or do we have a major war comin once again?
btw the news about the pirates sound like an awesome pitch for a bunjie/ea/ubisoft/microsoft/valve(y'all can keep adding) and maybe capcom fps game
Kuririn
Thoas
Posted 11:38 PM 1/10/08
@Tizlor
Its a quote from the movie Wall Street noob. The pic at the top of the article is from the movie Wall Street. Get it noob?
Thoas
ZillionDollarSadist
Posted 11:37 PM 1/10/08
Blue horseshoe loves Funcom.
ZillionDollarSadist
Tizlor
Posted 11:22 PM 1/10/08
@Thoas:
All that wealth, and you're still surfing a video game blog. Your point is moot, internet toughguy.
Tizlor
Tiejen
Posted 12:21 AM 2/10/08
If I was under 40 and had disposable income to invest, preferably in a tax deferred account such as a Roth IRA... The iron might be hot. If one were to look at the financial fundamentals of these companies, the sales and growth of the gaming industry, earnings trends and estimates, a little technical analysis, and wrap that all up in a holiday software/hardware release sales boom... One might conclude now is the time to take some positions... One might think that ERTS, THQI, ATVI, and MSFT look particularily compelling from a value and growth perspective.
And if one were to do it in a tax defered account, one could shorten their time horizon, hold the positions till after the holiday pop, say late Jan 09, and divest or throw trailing stops on to lock in gains.
I don't have a crystal ball but I think +25% between now and Jan 09 across the board would not be unreasonable. And yes one can make a case that consumer discretionary spending will be soft, but one could also argue that video games are more insulated from that in the value they provide per dollar. $20-$30 for a 3 hour movie experience with the wife or Rock Band 2 - $60 for 2-3 months easy of entertainment.
And that's Tiejens $.02
Tiejen
peacefuloutrage
Posted 12:10 AM 2/10/08
@muu: I'm glad the house didn't pass it. Most people didn't READ the bill, which basically gives $700 billion with no real oversight or consequences to people who caused the problem.
If it was passed, a Chinese bank could create an American subsidiary to get rid of it's bad debt, close it within 5 years, and we would be stuck with the bill.
Your money doesn't say "AIG" or "Bank of America", it says United States of America. The credit unions and smaller banks weren't committing this gross theft and fraud. They shouldn't be punished, and neither should we.
Also, the entire stock market and economy is not based on mortgage backed securities. Neither are most Americans employed by companies even on the NYSE, ASE, or NASDAQ.
Capitalism is based on Capital, or actual assets, not DEBT. If you have to make payroll from credit, you need to go out of business, because you are not profitable. The assets need to be liquidated, and maybe people could afford to buy things without the prices being artificially inflated.
peacefuloutrage
Do Kesubei
Posted 12:49 AM 2/10/08
@Thoas: Considering the state of things, I really should check out that movie. Wasn't this the flick with the famous 'Greed is good' speech?
Do Kesubei
topaz420
Posted 12:40 AM 2/10/08
Buy gold, or any other precious, mined resource.
It's the only thing that can't be printed out of thin air, like the increasingly worthless dollar.
topaz420
hudnut19
Posted 1:10 AM 2/10/08
@Tiejen: Well if you look historically at the great depression movies and cinema's did great. Why? Because when everyone is broke and times are tough they're willing to still part with their cash to forget their troubles for a couple hours. Cinemas were decorated and elaborate like palaces, beautiful. They don't make them like that now. Anyways point is I'd think video games would do very well in a crap economy. People wanna forget that bills are piling up and their situation in precarious.
hudnut19
xAnarChisTx
Posted 2:06 AM 2/10/08
@topaz420: It would have been wise to have purchased precious metals 2 years ago, and not now. What if you buy it now, and the prices go down? Wouldn't call that a good investment.
xAnarChisTx
Harfold
Posted 3:06 AM 2/10/08
Don't worry about it, Charlie Sheen is on the case.
Harfold
bornonce
Posted 6:42 AM 2/10/08
If anything good comes out of this latest turmoil in the markets, I hope it leads to all-time highest sales for "Wall Street". It actually is one of my favorite movies, and was under-appreciated for its foresight and brilliance. Gordon Gekko's brilliant speech should be a must-read for anyone wanting to understand how the economy and capitalism works (and why we must not get too carried away with deregulation).
bornonce
topaz420
Posted 3:20 AM 3/10/08
@xAnarChisTx:
Gold should not be thought of as an "investment" (i.e., something that predictably increases in value), even though it has behaved that way recently. It should be considered a "safe haven" against devalued currency. Based on the policies of BOTH presidential front runners, the dollar will continue to be in trouble for quite some time.
topaz420