Game stocks take hit, but companies are solid.

Even if your every breath doesn't hang on the state of the U.S. Economy, you've probably heard about the problem's it's been having recently. Game developers, being companies and therefore part of the U.S. Economy, have been affected as well. Yesterday's historic sell-off on Wall Street did hurt the stock prices of a lot of game companies - as well as everyone else. Activision/Blizzard took the largest hit percentage-wise, but they're still considered strong with Wrath of the Lich King on it's way.

And while Activision Blizzard may have been the company to see its stock take the biggest hit among its fellows during yesterday's market plummet, Sebastian actually believes it's still the best pick for the holiday season, owing to its release slate and the stability it gets from World of Warcraft's subscription revenue base.

Also, an encouraging fact is that most of the game companies that have projects in development already have their investment money. This means that they will likely be unaffected by the so-called "credit crunch" because they don't need to borrow money anymore - they already have it. New projects may have a bit of time to wait though.

Overall, the game industry seems to be safe for the moment because of its long development cycles and history of securing financing before a project begins. Don't fear for any of those projects you've been looking at coming down the pipe. Just keep in mind that there might not be anything coming down the pipe after that for a little bit.

For more information on how the Wall Street troubles have affected your gaming companies of choice, please check here.

Last Updated: Mar 13, 2016