This alert was originally sent to subscribers of Action Alerts PLUS on June 7 at 3:46 p.m. EDT.

GameStop

(GME) - Get Report

has dropped to around $31.76 this afternoon, and I'm going to pick up 500 shares after you read this. I maintain that this is the best way to play the new video-game consoles due out in the coming quarters. When the retailer's acquisition of

Electronics Boutique

(ELBO)

closes later this year, the company will have a dominant position in the industry.

I'm accumulating the stock now because GameStop already is collecting cash deposits on

Microsoft's

(MSFT) - Get Report

new Xbox machine. GameStop also has earnings power of $2 a share. I believe the stock deserves a 20 price multiple, suggesting a run to $40 down the road.

This purchase will give me a total of 2,500 GameStop shares, or about 2.1% of my overall portfolio.

At the time of publication, Cramer was long GameStop.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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