Cramer's 'Mad Money' Recap: Activision to Behold

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"It's going to be a very Activision (ATVI Quote) Christmas," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

This company, which is the second-largest video-game maker after Electronic Arts (ERTS Quote), "has an edge," he said.

If market players believe video games are "too juvenile to invest in," Cramer suggested thinking of them as "profitable, long interactive movies."

"Anyone under 30 understands the demand for video games," he said. "This is an all-video-game Christmas."

PlayStation 3 is set for release next month in the U.S. and Canada, but Cramer doesn't believe people should buy Sony (SNE Quote), which makes the console. Also, Nintendo's new platform, Wii, will be released soon, he said.

"When you buy a new console, you need new games," Cramer said.

People should invest in Activision because "it has the best titles," and it is "underappreciated," which means it's too cheap, he said.

Two popular video games, "Call of Duty 3" and "Guitar Hero II," get released Wednesday, and Cramer predicts they will be "monster hits." Although it's generally more risky to invest in game publishers than distributors, he believes there will also be more of a reward by owning Activision.

However, Activation has had "lumpy quarters," which have led to "shortfalls" for the company in the past, Cramer said. Therefore, he advised viewers to sell the stock by Christmas, as he considers it a trade.

Cramer reminded market players to use limit orders when buying Activision, which he called "a triple holiday season buy."