This column was originally published on RealMoney on April 4 at 10:51 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.Earlier this decade, Microsoft ( MSFT), Sony ( SNE) and Nintendo released a new generation of gaming consoles that delivered stunning graphics, addictive titles and heart-pounding action. But the industry has fallen into a major funk this year, held down by a range of issues that are undermining profitability.
Activision ( ATVI) has one of the hottest titles on the market right now, with its Call of Duty sequel. But that hasn't stopped the Santa Monica-based company from running into the same critical issues as its competitors. Notice how the stock topped out last year, printed a small double top, and then broke down in a volatile correction. Now take note of how the stock broke support right after Microsoft's limited Xbox 360 release in November. It finally bounced in March and now shows the first stage of a sideways pattern that could last a very long time. Unfortunately, accumulation hardly budged in the recent uptick, so investors still aren't finding much to love here.
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