Edge: Game Stocks: Headed for Meltdown?

Edge writes: "Monday, September 15th, 2008. It's already known as "Black Monday," as two major firms, Lehman Brothers and Merrill Lynch, imploded. While the latter was absorbed by Bank of America, the former dissolved in the largest bankruptcy in American history. That chaos took a major toll on investor confidence in all sectors-the Dow and NASDAQ suffered massive drops across the board, with more losses still expected to come. After all, firms as large as Lehman Brothers have their hands in a lot of corporate pies.

For the games industry, as it has been for many industries, the losses have already started-most publicly traded publishers experienced share price declines Monday, which continued into Tuesday. This is not surprising, as short-terms safe havens for investment are few and far between following such a major catastrophe. But for the smart investor looking for a long-term bet, do game companies still hold up? To find out, we went right to the financial analysts who watch the market closest."

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