Gamers Flirt With Bargain Bin

Shares of video-game publishers are nearing rock-bottom prices, but is it time to start betting on a rebound?

That depends on who you talk to and how long you feel like waiting. Some investors, for instance, see short-term plays to be made in at least some of the names -- Electronic Arts (ERTS Quote) comes up repeatedly -- in the run-up to the holiday season.

"Clearly, there are big catalysts on the near-term horizon," says Darren Chervitz, a research analyst at Jacob Asset Management, pointing to the expected release this fall of new game machines from Sony (SNE Quote) and Nintendo. "When the market environment gets better, as we get closer to the holiday season, these stocks will benefit," adds Chervitz, whose firm is long EA and THQ (THQI Quote).

Others buysiders say that with publishers' stocks having sunk so low, they're also starting to look good for the longer term. Activision (ATVI Quote) and Take-Two Interactive (TTWO Quote) both hit 52-week lows this week, while EA and THQ are within spitting distance of theirs. ...