No.1 - The Next Level For Video Games

The interactivity of the Nintendo Wii and Guitar Hero have been the latest revolutions in the video game world. What's next? We may find out Wednesday when the E3 Media and Business Summit kicks off in Santa Monica, California.

CNBC Silicon Valley Bureau Chief Jim Goldman joins the guys from the E3 conference, also known as the Super Bowl of gaming.

Goldman says this year’s E3 attracted far fewer people than last year because now, it’s by invitation only. He expects to hear news over the next few days that will move markets.

He adds that Activision (ATVI) made headlines by raising estimates on the surprise success of Shrek and Spider-Man. Goldman also says The Street is paying close attention to Electronic Arts (ERTS) because they enjoy the best margins in the industry.

Pete Najarian says Take-Two (TTWO) is the laggard in the video game space and asks Jim Goldman what might help this stock.

Goldman says Take-Two will soon introduce Grand Theft Auto 4 which is exclusive for X-Box 360. He says, that is expected to be huge, however he feels the company has serious management issues.

On a related note, Goldman says he will be getting a first look at Halo 3 tonight and reveals there’s a lot of excitement around the game.

Jeff Macke says the play is to stay long Activision.

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Trader disclosure: On July 10th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Macke Owns (ATVI), (JWN); Najarian Owns (DNDN),Finerman's Firm And Finerman Own (HD), (NMX), (WMT), S&P Puts Bolling Owns (ICE), (NMX), (T), Gold, Silver, Natural Gas, Copper, Corn