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It reminds me of sort of an overarching thesis that I have with the video game industry and I don't know if it's correct. In some respects you begin to understand that maybe some of these video game designers have the same risk that we overlay on to Hollywood studios, in the sense that there utility to draw gamers and to keep them there is based on their ability to create new and interesting games and or update and evolve the games that are already existing. So that creates a great and a tremendous amount of pressure on the designers and the creativity of the studio inside the video gaming industry. And that's a hit and miss prospect as we know because Hollywood studios are hit and miss themselves when they're essentially doing the same thing and that's creating entertainment. Now the base cost of designing a video game is nearly as substantial as it is for putting together a blockbuster, but nonetheless it's still a cost that has to be born. And I just wonder if you guys agree with that in the sense that the wild card of creating a game that's going to be the hit is such that it's difficult to define value to stocks in the near and longer term As a result.

So, if popcorn's for movies--what's the snack of choice for video games?

TheStreet's Martin Baccardax explained a theory that he has about the video game industry and the comparisons that can be drawn to Hollywood and movie studios. 

On Friday, Jan. 11, Activision Blizzard (ATVI - Get Report) announced its divorce from Destiny and its development partner, Bungie.

Bungie will take full control of the Destiny game franschise -- once the most successful of all time -- following the split, with Activision citing an inability to meet targets for return on investment on an earlier earnings conference call. Activision had paid royalties for Destiny, and partly subsidized its development, as part of a reported ten year contract, Baccardax reported.

Activision is Real Money's stock of the day

The video game sector was only one of the topics discussed on this week's episode of Trading Strategies. You can listen to the full episode below:

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