Video Game Slump Nothing New

by The Investment U Research Team

Reports from last month indicate that the sales of video games were lower in April and have been lower for the past two months. But the numbers, while down, still represent a large increase of 2007.

But there’s something else going on here as well: Nothing new…

There haven’t been any spectacular new games or consoles on the market this year. No new Halo’s or Vice City’s, no new Wii’s. The industry is still making money and players are still buying occasional games here or there, but they aren’t splurging on new stuff like they have in the past.

But this content drought isn’t a bad thing.

It just means that companies like Take-Two Interactive Software (Nasdaq: TTWO) and Activision Blizzard (Nasdaq: ATVI) will find

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Take Two Interactive (TTWO) Still Recession Proof?

Last week, Rockstar Games, a division of Take Two Interactive Software (Nasdaq: TTWO), released its first add-on to its blockbuster Vice City franchise. The interesting thing about this addition is that it’s can be purchased only through Microsoft’s (Nasdaq: MSFT) Xbox 360 live marketplace.

For those of you who missed the subtleties of this, lets break it down. One, they’re not spending the money on rebuilding a fictional Liberty City, but simply tweaking and adding updates to it. Secondly, the price on this update is closer to $20. Rather than the $50 charged for the Grand Theft Auto: Vice City IV Game.

Finally, this move to distribute the game through the Xbox Live format, basically online but accessed through the Xbox 360 consol, has to be a success for the teams at both Rockstar and

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Electronic Arts (NASDAQ :ERTS) is set to report earnings after the close and if they have anything good to say, you can bet Take-Two Interactive Software (NASDAQ:TTWO) shares will move seeing how they just hit $6.70 yesterday.  Since Sept 08, shares of TTWO are ...