I have not been shy about gaming and gaming stocks. Long-term this trend is and has been money. We have covered Sony , Electronic Arts , Nintendo , Gamestop and Microsoft (it can’t be Vista) on Wallstrip.

My favorite in the space has been Nintendo. I was buying and recommending it way back in March when it had already risen 300 percent rather quickly. It has still more than doubled since than. The phenomenon will only grow.

But it’s Activision that will be in the spotlight for the next week, at least in the press. Vivendi is buying, investing and merging with Activision (ATVI) (no kissing though). Here is New York Times coverage and some big gaming blogs . I have to be honest that I did not know Vivendi was even in the game business until hearing that it owned World of Warcraft.

I have owned this stock before but have mainly stuck with Electronic Arts, Sony and Nintendo as my proxy for the game market (the stock should rocket higher tomorrow so I am bummed of course). With respect to Sony and have taken much ridicule for that at a recent dinner in San Francisco (but it is on fire lately too).

Building games is a gigantic market but is becoming more like the movie business and that’s why this move by Vivendi is underway. Activision is ruling the game world these days with Guitar Hero and today’s Wallstrip pretty much sums up why.

The game has become a lifestyle for adults across the nation. Check out the GuitarHero website . Here is the Wikipedia page .

Easier than the real guitar and a good reason to get smashed and live out your rock star fantasy. Guitar hero is UNSTOPPABLE as will all of it’s offspring.

Brian takes a look at the activision pricing picture to wrap it up:

In the end, don’t think too hard. This trend is something that all investment portfolios should have exposure too. Take your pick.

Disclosure – Long Nintendo, Electronic Arts and Sony

You can’t value that properly. Too new. That’s why the shorts have been bludgeoned.

Now, Carl Icahn is a smart dude. He believes that Motorola is undervalued. He is generally right. He is likely right here. He is patient and maybe is not bothered that RIMM is screaming higher. He should be.

He would have made WAY WAY more money looking at the issue from a Blackberry user’s point of view. Instead, he is down in his Motorola position and watching Blackberry climb 100 percent since his move on Motorola.

Nintendo recently blew past Sony in market cap. Now that shocked even me. I own both. I love the Wii and so do my kids, but I am not as convinced on that one. I think both keep rising for now.

Disclosure – Long Sony and Ninetndo

When the mood of the market turns (it will), the real valuation gap between the two companies will get more realistic. If you can guess win (you can’t and should not be guessing), you win.

‘Guitar Hero’ does nothing for me. It seems I am in the minority. The PSP is cool and my son is addicted, but my daughter Rachel could give a hoot.

I know the Wii seems like old news, but it is not. Investors are clamoring for the stock , despite it being a pink sheet inhabitant.

I have passed on the Wii hype for now because I figured we had a Playstation 2 or 3 and my son rarely plays.

BUT ,

I saw the Electronic Arts commercial for Tiger Woods Wii Golf game and the WHOLE family went WOO for the Wii at the same time. This is a can’t miss homerun. This is great for golf, families, gaming, Wii, and Electronic Arts. That’s just off the top of my head.

I just saw Andy’s post on Wii and I am reminded of the two extra addiction and adoption factors – ease of use and big screen TV’s.

The obvious long-term benefactors remain the same: Electronic Arts (ERTS), Nintendo (NTDOY.PK), Activision (ATVI), Gamestop (GME), Best Buy (BBY) and even Sony (SNE).

Sony is a play because they will adopt and Nintendo will make mistakes. Their ‘faux’ shortage games have already started . Sony’s distribution power is not to be underestimated.

Today, Gamestop (GME) exploded to another all-time high and Activision looks poised. Electronic Arts was up big as well. Sony has been on a tear of late despite the Wii kicking it’s ass.

I am glad to have caught Electronic Arts down 20 percent. Keep your eye on this sector for inevitable selloffs as their will continue to be massive gains in the years ahead.

On Wallstrip , we have covered Sony and Electronic Arts . Looks like we will be doing more on this sector in the months and years ahead.

Any other obvious winners worthy of Wallstrip ?

BTW – If we legalize marijuana, these stocks double overnight :) .

Disclosure – Long ERTS and buying a few shares of Nintendo tomorrow and hoping it has an immediate hiccup. I have never inhaled.

Of all the Wallstrip companies we covered so far, Sony was the one that was not Wallstrip worthy based on price. The point of the show was to discuss how a stock and a great product do not go hand in hand.

Things are changing…fast. As of today, the stock is up 30 percent since the show.

I am thinking of pulling the trigger on a little weakness. Here is why. I like tech. I like video. I like PSP’s. I like Japan. I like the brand.

I like the fact that all you hear about is the Wii, but Sony is rising.

I think t’s their dominant position in video that has crept into the picture. The web in 90 years will be all voice and video.

If you knock off the run of 1999-2000, the stock is hitting all-time highs .

Thoughts?

I must admit I have absolutely no interest in video games. But, my son loves his PSP. He is not the only kid (or adult). He does not give his Playstation 2 the time of day, but I am sure that day will come. The PSP is the perfect product for an 8 year old boy. Despite the KID love, the stock remains a DOG! Why?

Sony the company still lacks a catalyst. It’s too big, too slow, too clunky. Some great products, but no catalyst. The right wing hates them to boot.

I want to look at Apple, Sony and Oakley to compare a great product being turned into a stock catalyst.

First Apple. People continue to look at Apple and say – it’s the iPod that remade this company – it won’t continue. No doubt iPod sales will not grow continuously, but the catalyst was it’s delivery and the Apple Store. That part of Apple will continue unabated for some time.

Sony could open 1,000 stores and it would not dent the bottom line. In fact, it woulld serve to piss off their main sources of retail distribution.

Oakley has a wicked product in their RAZR sunglasses and the means to deliver it (mall stores), but they can’t or won’t do it well. They prefer to lock them up behind glass doors while you wait 10 minutes for a salesperson to unlock the cabinet and hand you a pair that has no music.

WTF! Is there not one Oakley executive that has been in an Apple store? If they fix it, their stock could run.

When Sony decides to unlock some of it’s growth components and spin them off, you may have some growth tickets. But Sony the stock… come on. If you can’t find something better in this market, you are not Wallstrip Worthy :) !

Disclosure – No positions in Sony or Oakley. Long Apple.