GameStop (GME) posted what I thought was a mediocre third quarter. Total sales went up about 8%, and earnings per share increased a few pennies to 31 cents. When you think video games, you think growth. That doesn't feel like growth, does it? Not the kind that sends a stock to the moon, certainly. Furthermore, same-store sales saw a decrease of 7.8%, driven by lackluster hardware transactions. Indeed, we may be hitting a point in the console cycle where the demand for systems from Sony (SNE), Microsoft (MSFT), and Nintendo (NTDOY) has essentially been satiated.

Here's the big question on the mind of traders: unimpressive Q3 or not, should GameStop be bought now?

Morale has plunged among military personnel in Afghanistan as a result of record violence in the war, according to the U.S. Army. A battlefield survey found that the situation is particularly problematic for soldiers on their third and fourth combat tours, and junior enlisted soldiers are most likely to experience marital problems because of deployment. Though it's not a complete solution, the study did find that limited doses of technology – either through video games or internet access – can help.

The study, obtained by NBC News, revealed that more than 20% of soldiers are experiencing combat stress, and half of them are having difficulties getting professional help. Combat Stress units in Afghanistan, the report says, are "undermanned," and this type of unit has no presence in the southern part of Afghanistan, where most of the combat is taking place.

While the big news today may be the release of Activision Blizzard's (ATVI) new Call of Duty title, there's other stuff going on in the world of video games for investors to ponder. Electronic Arts (ERTS) issued its Q2 report yesterday after the bell. The numbers weren't too bad, but the market was not excited at all by them, probably because it knows that EA still has a lot of work to do in terms of better positioning itself for the future.

Adjusted revenues were up a scant 2%. Earnings per share, excluding items, actually showed a profit of 6 cents. This was a lot better than the loss of 6 cents per share seen in the year-ago frame. The company also managed to generate a small amount of cash from operations in the quarter instead of using a whole bunch like it did last time around.

Activision Blizzard (NASDAQ: ATVI) published third-quarter results on Thursday after the bell. I can't say I was wholly taken with them. I know the best is probably yet to come once the Christmas shopping season really gets under way, but I was a little disappointed that the company saw a decline in adjusted profit.

Excluding items, Activision Blizzard made 4 cents per share this quarter versus the 7 cents per share made in last year's similar period. Well, did I say I was a little disappointed? Make that a lot disappointed. After all, this is supposed to be the publisher with the best pipeline on the block, the one with the Guitar Hero franchise and a great portfolio of licensed intellectual properties.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Aflac Inc. (NYSE: AFL) reported strong Q3 results, declared a dividend, and offered guidance for Q4.
• Avon Products Inc. (NYSE: AVP) Q3 earnings slumped and revenue was hurt by currency translations.
• BP (NYSE: BP) shares leaped higher after it reported better-than-expected quarterly earnings.
• Daimler AG (NYSE: DAI) reported that it returned to profitability in Q3 but warned of decreasing revenue.
• General Dynamics Corp. (NYSE: GD) Q3 earnings beat expectations and it lifted its earnings outlook.
• Hershey Co. (NYSE: HSY) posted strong Q3 earnings and expects full-year earnings ahead of forecasts.

If the Wii were still cool, Nintendo (OTC: NTDOY) wouldn't have had to take a heavy hand to its full-year earnings forecast. The company's profit fell 52% year-over-year for the past quarter, due in large part to a decline in the game's popularity. Demand has slipped, with Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) gaining ground with the core market of zealous gamers. Also, it's seen its position eroded by Apple's (NASDAQ: AAPL) iPhone, which is picking up some momentum as a gaming platform.

Nintendo's Q3 operating profit dropped to JPY64 billion ($709 million), falling far short of the analyst estimate of JPY90 billion. For the year ending March 2010, the company has chopped its forecast to JPY370 billion, far lower than the analyst expectation of JPY442.8 billion.

After dominating the gaming industry for the past three years, Nintendo's Wii gave up its position in the top spot to Sony's PlayStation 3 last month. The company has also been hurt by an increase in the value of the yen, which has hurt all Japanese exporters. Yet, even by local standards, Nintendo isn't measuring up. Its stock price is down 28% this year, compared to a 14% increase in the Nikkei 225.

In the past, it has been the Nintendo (OTC: NTDOY) Wii or Apple's (NASDAQ: AAPL) iPhone creating holiday hype -- what product will it be this year?

Quite honestly, none. The tech realm is still looking for the next big holiday hit. This is why it appears that we could be facing a holiday season full of buy-one-get-one-free specials or pushy salespeople trying to get you to allow their company to install the new flat-panel TV or add ons that will help integrate your home entertainment system.

So, what does this mean for electronics retailers?

September is drawing to a close. What does this signify? Well, one of my favorite times of the year, Halloween, will soon be upon us. Even more than that, holiday shopping is about to begin in earnest. Is your portfolio ready?

I've been checking around for investments in the retail sector. Problem is, so many of them have already had significant run-ups. However, even with these higher stock prices, the sector still might be an interesting one to look at since it's possible that Christmas could turn out okay. A post on DailyFinance discusses a report from the International Council of Shopping Centers, which basically states that numbers from this holiday season should see an improvement over last year's data.

Well, it's been an exciting month for the video-game industry. Viacom (NYSE: VIA) and Electronic Arts (NASDAQ: ERTS) released The Beatles: Rock Band to the market. Nintendo (OTC: NTDOY) cut the price of the Wii in an effort to better compete with Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT). And rumors of consolidation in the industry are getting heavy. The buzz on some corners of Wall Street is that perhaps a major media conglomerate might want to take over THQ (NASDAQ: THQI).

According to The Wall Street Journal (subscription required), either Viacom or Time Warner (NYSE: TWX) might be interested in the publisher. There are plenty of reasons to believe this would be a logical move for either of those two. And there are plenty of reasons to suggest that buying THQ wouldn't make sense. I mean, take Viacom: wouldn't it rather concentrate on the Rock Band franchise? As for Time Warner, does it truly desire the hassle of integrating THQ? Right now, Time Warner's stock is in an upswing, and I don't think shareholders would want to ruin such momentum with the purchase of a software company that has been experiencing growth problems.

It's finally happened. Nintendo (OTC: NTDOY) has reduced the price of its Wii gaming console. What once was $250 is now $200 (or, technically, $199.99, the psychologically important way of designating the new cost).

Why did Nintendo do this? Because both Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE) have cut the costs of their own entertainment systems. Plus, we're simply at that point in the latest video-game cycle when cuts are implemented. Hardware eventually becomes less expensive. When demand levels fall off, more casual, value-oriented consumers are courted with cheaper prices.

Fair or not, Take-Two Interactive (NASDAQ: TTWO) has a reputation for a shallow pipeline of shareholder-enhancing software. It is known simply as the Grand Theft Auto publisher. There's more to Take-Two, of course. There are sports titles, for example. There's BioShock. How about the big hit for the Nintendo (OTC: NTDOY) Wii, Carnival Games? What about Borderlands?

That's all well and good, but if you look at the company's latest earnings report, you'll have no choice but to conclude that the one-game reputation is firmly intact.

Take-Two's top line plummeted 68% during the fiscal third quarter. Net loss on an adjusted basis came to 66 cents per share. There was a huge profit of 93 cents per share in the year-ago period, driven by the fourth edition of Grand Theft Auto. Not a great comparison. At least the performance was a little better than expectations. According to Earnings.com, Wall Street was calling for a loss of around 68 cents per share.

So you've heard the news I'm sure. Microsoft Corporation (NASDAQ: MSFT) is not standing still in the video-game wars. It recently reduced the price of the Xbox 360 Elite system by $100. We now have parity between an Xbox 360 unit and a Sony Corporation (NYSE: SNE) PlayStation 3 console.

It's going to be interesting to see how hardware sales perform in the coming months. Intuitively, one would have to expect a bump in the number of units sold for both companies. But which one will win out?

Electronic Arts (NASDAQ: ERTS), a video-game publisher that competes with Activision Blizzard (NASDAQ: ATVI), THQ (NASDAQ: THQI), and Take-Two Interactive (NASDAQ: TTWO), issued Q1 stats after the bell on Tuesday. Things are looking up for the company famous for its Madden brand of football software. Adjusted revenues increased over 30%, and the loss on the bottom line narrowed to 2 cents per share from a loss of 42 cents per share in the year-ago period.

The profit performance beat Wall Street's expectations, as Alex Salkever reports over at DailyFinance. You can check out his article to get the highlights of the quarter and a perspective on the current state of the video-game industry, which includes console makers Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY).

Well, it had to happen sometime. Nothing lasts forever, right? Nintendo (OTC: NTDOY) and its fabulous Wii system are no longer hot. To be certain, the Wii is still very, very popular. But from an investing/trading standpoint, you've got to sit up and take notice of the story and highlight not only how it's changed, but how it may change in the near future.

According to Bloomberg, Nintendo's top line decreased 40%, while the profit line tumbled a little over 60%. The Wii unfortunately took a huge hit to its momentum: sales of the console, which competes with Sony's (NYSE: SNE) PlayStation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360, plunged 57% in terms of units. Besides issues relating to the fad and its possible death, the yen, as expected, also had an effect on Nintendo's prospects.

Activision Blizzard (NASDAQ: ATVI), a software publisher which competes with Electronic Arts (NASDAQ: ERTS) and distributes games for consoles from Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY), is a stock I own in a long-term account. I've been thinking about selling at times, but for now, I'm holding on. The long-term prospects still look good for the most part.

But, I had been looking at various trading ideas and wanted to capture a shorter-term gain for a trading account. The market has been so tough this year. When the recent rally in the indexes started, I didn't want to become part of the group that was desperate to get in on the action, only to expose my portfolio to more risk than necessary. Believe me, when you're afraid of missing a rally, you just might end up with some bad timing.