Video game stocks are not having a good day, with Electronic Arts (EA) - Get Report  down 13.31% and Take-Two Interactive Software (TTWO) - Get Report tumbling 13.76%. While both of these companies disappointed investors with their earnings results, the declines were even weighing on Activision Blizzard (ATVI) - Get Report , which is down around 10.12% as well.

Specifically, regarding Electronic Arts, the stock fell after the company disappointed investors with its third-quarter results. Net bookings of $1.61 billion came up short of the $1.75 billion analysts were looking for, marking a decline of 18.3% year-over-year. Flat growth from FIFA 19 and disappointing results from Battlefield V didn't help matters. The results may have been overlooked, if not for the company's fourth-quarter guidance.

"Q3 was a difficult quarter for Electronic Arts and we did not perform to our expectations," said Andrew Wilson, CEO of Electronic Arts. He added that the challenges in the third quarter would persist into the fourth quarter as well. Management expects full-year sales of $4.875 billion vs. a consensus of $5.1 billion and down from its prior guidance of $5.2 billion. Fourth-quarter guidance for net bookings of $1.17 billion fell well short of expectations looking for $1.75 billion. 

In short, CEO Wilson was right and EA is struggling right now. Who wants to buy into that wave of pessimism? China video game sales are struggling thanks to regulatory hurdles, while competition continues to eat into the results. Gamers love Take-Two's Red Dead Redemption 2 and Epic's Fortnite, and that's bad news for companies like EA and Activision Blizzard. (Hint: Here's how Fortnite might disrupt the PC marketplace in 2019).

As Real Money's Stephen "Sarge" Guilfoyle says, Take-Two

looks the most attractive

of the group, but what does that mean for Electronic Arts?

Trading Electronic Arts Stock

Three-year weekly look at Electronic Arts stock after earnings

From a business standpoint, Take-Two is admittedly more attractive. While it has its share of struggles too, it's executing better than Electronic Arts. That said, Take-Two is making new annual lows, while Electronic Arts stock is still above its 52-week lows.

Not that I would consider EA's 13% beating on Wednesday as a bragging point, but at least investors have a level to shoot against. Should the stock close below $75 and lose the 52-week low of $73.91, odds of it declining down to $67 increase dramatically. For those already long, keep this $75 level in mind. Those looking to buy may consider waiting for a larger pullback first, to improve their risk/reward.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.