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Winning Video Game Stocks for Next Year: Analyst

Microsoft’s Kinect was a solid hit this holiday season, but the game console’s success alone may not be enough to boost the video game industry for next year, said Evan Wilson, entertainment analyst at Pacific Crest Securities.

“It’s been a year of big winners and big losers in 2010,” Wilson told CNBC.

“We’re far enough in the current video game cycle that we’ve reached a point where if you release something big, people go out and buy it. But your average [video game] title goes by the wayside.”

Wilson added that hardware sales slowed this year, because other video game consoles including Sony’s PlayStation Move and Nintendo’s Wii didn’t cut prices.

“In lieu of new consoles, we need lots of price cuts and need consoles to eventually get down to $99,” he said.

Looking forward, Wilson said he favors Activision Blizzard and Electronic Arts .

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Scorecard—What He Said:

  • Wilson's Previous Appearance on CNBC (Dec. 10, 2010)

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Gaming & Tech—Advice and Analysis:

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CNBC Slideshows:

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CNBC Data Pages:

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Disclosures:

Wilson does not own shares of ATVI or ERTS.

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Disclaimer