Gaming Sector Powers Up Ahead of E3

Video-game companies are moving up a level on Monday, ahead of the Electronic Entertainment Expo.

While E3 doesn't officially start until Tuesday, investors are expecting positive news from the conference, where video-game makers will present initiatives for the coming year.

Shares of THQ(THQI Quote) soared 9.5% to $7.04, while Activision Blizzard(ATVI Quote) inched up .4% to $12.13, after the company gave a glimpse into its video-game lineup for 2010.

Video-game retailer GameStop(GME Quote) jumped 3.5% to $25.83. Last month, the company issued a second-quarter warning, saying strength in the quarter could be waning.

Electronic Arts(ERTS Quote) rose 2% to $23.39, Sony(SNE Quote), maker of Playstation 3, saw a 4% increase to $27.33, while Microsoft(MSFT Quote), which makes Xbox 360, rose 2.5% to $21.41.

Still, just because E3 is experiencing an upswing after two years of downsizing, that doesn't mean the video-game industry is returning to its heyday. Only 40,000 people are expected to attend the convention, compared with some 70,000 in 2005. This, however, is far more than the approximately 5,000 that attended in recent years.