Investor snapshot: Game stocks sink along with Dow

Tuesday was tough on most game-industry concerns, as the US markets returned from a long Presidents' Day weekend in listless form. Both of the major retailers, Electronics Boutique (ELBO) and GameStop Corp. (GME), posted losses; EB shares dipped $1.55 to close at $35.28, while GameStop shares finished 82 cents lower at $18.71. Jamdat Mobile (JMDT) was down 80 cents to $18.56 at the closing bell, just two days before the company is due to report its fourth-quarter earnings.

Vivendi Universal (V) shares closed 52 cents lower at $31.39. THQ Inc. (THQI) shares finished the day at $26.70, down 28 cents, while shares in Take-Two Interactive (TTWO), Konami (KNM), Eidos (EIDSY), Activision (ATVI), and Atari (ATAR) were also down. Midway Games (MWY) shares were up a penny to close at $10.38.

Midway will announce its fiscal Q4 2004 results (the Oct-Dec quarter) after the markets close on Monday, February 28. In a memo released this afternoon, Wedbush Morgan Securities said it would maintain a "hold" rating for the time being. Expressing mild optimism, Wedbush analyst Michael Pachter said, "We believe that Midway shares continue to be richly valued in terms of minimal near-term earnings potential." He then added, "We believe that the company is back on track to profitability and believe that there is great potential for a positive surprise during the coming year."

Nintendo shares, traded on the Japanese market, lost 180 yen ($1.73), closing at 11,820 yen ($113.52). In Paris, Ubisoft (UBSFF) shares, on a rapid rise since EA's recent stock buy hinted at takeover activity, climbed 49 cents to $43.60 Tuesday.

Elsewhere on the US exchanges, shares in Electronic Arts (ERTS) traded 31 cents higher at $64.35. EA has had its share of news today, including the surprise release of MVP Baseball 2005. In addition, another EA employee has filed for monetary damages, citing unpaid overtime.

Overall, the Dow Jones Industrial Average slid 174.02 points, down 1.6 percent to 10,611.2. The Nasdaq Composite was also down, by 28.3 points, finishing the day at 2,030.32, while the S&P 500 Index closed 17.43 points lower at 1,184.16.

In general economic news, all eyes were on oil prices today, which rose to $51.15 a barrel. The last time oil prices rose above $51 was in late October, according to Marketwatch. The US dollar lost value Tuesday after South Korea's central bank announced it will sell part of its dollar deserves and hinted that some of its oil holdings will be transferred from dollars to euros.

In the foreign markets...
In Asia, the Nikkei 225 Stock Average, South Korea's Kospi index, and Hong Kong's Hang Sen all finished lower Tuesday, while China's Shanghai Composite gained 1.9 percent. Shares in tech companies like Fujitsu, Hitatchi, Toshiba, and NEC, all traded in Japan, were on the upswing. Europe's markets dipped on Tuesday. Mobile-phone maker Ericsson announced plans to close a Swedish plant and lay off 393 employees, major news services reported today. The company will close its production and design facility in Nynaeshamn and move production to other manufacturing sites in central Sweden. Shares in Netherlands-based electronics manufacturer Philips declined .85 percent.