Playboy (PLA) has already cut its staff and cut its office space ... but you know things are bad when Hef starts cutting back on the amount of skin his Bunnies are baring.

According to industry reports, Playboy is planning on a mix of new sites aimed at tackling a tamer market -- and none of them involve nudity. According to Playboy insiders, the company is developing a "free, safe-for-work site" its calling TheSmokingJacket.com, as well as additional subscription content with a slightly tamer feel.

Broadening your appeal beyond a core product is no easy task. But if done successfully, it can forever change the fortunes of a company. Just look at Nintendo (NTDOY) and its efforts to make video games mainstream and not a niche product for pimply-faced teenagers.

Nintendo Co., Ltd. (ADR) (NTDOY) is an entity I've been cautious on. I've made money on it before, but to be honest, even though it has done very well for some market players in recent months, I find the ADRs difficult to buy. They are currently priced at $42.45. I would really like to see them a lot lower before entertaining a trade.

Problem is, I'm not sure when, or if, they will go lower (not in the short term, anyway). They're currently near a 52-week high, and after a news item I just read, I have to admit I'm feeling more and more bullish on the business.

There's a new chapter this week in the constant quest to make video game consoles about more than just video games: Sony (SNE) is rolling out technology that will stream Major League Baseball games live, directly to your PlayStation 3.

Video game console makers -- including Sony, Microsoft (MSFT) with its Xbox, and Nintendo (NTDOY) with its Wii -- have taken great pains to ensure that their devices do more than just play the latest Mario or Halo title. As March video game sales figures show, hardware sales are still anemic thanks to weak consumer spending. Pitching their products as multi-use entertainment devices is one strategy to stop the downward trend.

It's easy these days to get excited about video game stocks. But investors should beware: Not everything is what it seems.

Part of the recent enthusiasm around video game stocks comes from game maker Activision's (ATVI) announcement on Thursday that it was raising its guidance for its Q1 results, which will be released on May 6. The company expects earnings of 72 cents per share, up from its earlier forecast of 70 cents per share. Shares were up nearly 4% on the news and the stock is up about 19% for the year.

Nintendo is also the source of some intrigue as it pushes ahead with ambitious plans to bring video games to the classroom and to implement 3D video game technology. Plus, the company is rolling out a souped-up DSi video game console with a bigger screen.

After a disappointing February video game sales report, many analyst insiders are predicting a strong month in March for top video game stocks Electronic Arts (ERTS), Nintendo (NTDOY), Sony (SNE) and Take Two Interactive (TTWO).

The biggest reason is simply because the bar is set pretty low. March 2009 video game sales were down 17% when up against 2008 numbers, and unless the data gets seriously skewed we should see an organic rebound in numbers just from that low. If you'll recall, March 2009 was pretty bad on all fronts -- the economy shed 650,000 jobs, stocks hit a 12-year low, and there was a -6% contraction in GDP for the first quarter of 2009.

With lower expectations, the video game industry may win a reprieve when the March numbers roll out. But on top of those low expectations, a new Nintendo console and a few blockbuster titles should result in decent sales for the industry.

Last week, video game icon Nintendo Co. Ltd. (NTDOY) let the world know of its plans for a 3D-capable portable gaming device. And despite all the hullabaloo over 3D technology in the flat screen TV market, this could very well be the first real connection between 3D entertainment and a viable consumer market.

Avatar saw big success in the box office due to its 3D experience, and related companies like producer/distributor News Corp. (NWS) and theater operator IMAX (IMAX) got a lift. Many companies are hoping they can provide a similar experience in the home and cash in off expensive new hardware for home theaters.

We all have our watch lists. I'm no different. Here are four companies that I monitor almost every single day, and a brief opinion on each of them.

Activision Blizzard (ATVI): I sold this one back in January. Some believe I was wrong to do so. I definitely comprehend the sentiment, because really, this is the best publisher in the sector. Compared to Electronic Arts (ERTS) and Take-Two Interactive (TTWO), Activision Blizzard has an enviable pipeline. Unfortunately, the video-game industry isn't firing on all cylinders; check out the most recent monthly-sales report, and you'll see what I mean. In addition, the company's Guitar Hero franchise isn't the fad it once was. I do want to get in on the stock again, though; lately, the price seems to be perking up. I'm not ready to send in the buy order just yet. I'm waiting for further strength to materialize in the shares.

Take-Two Interactive (TTWO) is the kind of stock I want to take a chance on but just can't bring myself to do so. The situation can be risky unless a fresh bit of Grand Theft Auto content is about to come out into the marketplace. Then again, those who bought ahead of the Q1 earnings report, released yesterday after the bell, are pretty overjoyed this afternoon, seeing that the stock is, at the time of this writing anyway, up well over 9%.

Net sales increased 9%. The adjusted loss from continuing operations was 31 cents per share. Last year at this time, shareholders were looking at a loss of 56 cents per share on the same basis. Reuters says the analyst call was for the red ink to equal 51 cents per share. Good job, management.

Anyone got an extra $41,300 lying around? If so, perhaps you could also purchase Nintendo's (NTDOY) Stadium Events.

Apparently this fellow from Kansas was inspired to dig through his game collection after reading a story about a game selling for $13,000 on eBay (EBAY). Well, that turned out to be some lucrative digging.

January proved to be a rather difficult month for the video-game world, as evidenced by a greater-than-expected drop in sales during the month. According to the NPD Group, U.S. game sales fell 12% during January. The drop in game sales was expected to total 5%. In addition to this news, hardware sales dropped by 21% during the month.

Reportedly, Nintendo (NTDOY) sold 465,800 units during the month. This total was down more than 30% during January 2009. The Nintendo DS saw sales fall 17% from a year ago to 422,200 units. Nintendo pulled down the hardware segment, as both Sony (SNE) and Microsoft (MSFT) saw sales of their gaming consoles increase.

Electronic Arts Inc. (ERTS) was down in the after-hours session by over 9% on the heels of the gaming publisher's Q3 report. Non-GAAP sales were off by over 20%. Adjusted income came in at 33 cents per share. This was two cents higher than expectations according to my earnings preview, but a lot less than the 56 cents per share earned in the comparable frame.

The press release mentions the lower quantity of titles released during the holiday season as being a driver of the decline in revenue (a tough European market was also cited). That may be, but it doesn't absolve EA of its fundamental challenges.

Electronic Arts (ERTS), a software maker whose colleagues include Activision Blizzard (ATVI), Microsoft (MSFT), Nintendo (NTDOY) and Sony (SNE), will be reporting third-quarter numbers on Monday, Feb. 8, after the market closes up shop. This is going to be an interesting one.

I doubt there are many market watchers out there who aren't aware of the problems in the video game industry; 2009 was not the best of years for the sector, and investors are hoping that 2010 will execute a rebound. However, EA has specific fundamental problems. The declines seen in its share price cannot be solely sourced to the macro conditions of the current console cycle.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Apple Inc. (AAPL) posted its highest quarterly revenue ever, easily beating estimates, as iPhone sales doubled.
• Boeing Co. (BA) swung to a larger-than-expected Q4 profit but guidance fell short of analysts' estimates.
• Chevron Corp. (CVX) fell short of analysts' earnings estimates for Q4, sending shares lower.
• Cisco Systems Inc. (CSCO) shares rose after optimistic statements by the CEO ahead of Q2 results.
• Eastman Kodak Co. (EK) shares surged after it beat Q4 expectations by a wide margin and cash flow improved.
• Ford Motor Co. (F) reported its first annual profit in four years due to cost-cutting and improved market share.
• Halliburton Co. (HAL) reported lower Q4 earnings but beat estimates by a penny, and revenue also fell.

Nintendo (NTDOY), the power behind the Wii console and the DS handheld, and a feared competitor in the corporate eyes of both Sony (SNE) and Microsoft (MSFT), released earnings to the market this week. According to Bloomberg, the gaming giant experienced a better than 20% contraction in operating profit in the last quarter.

However, net profit rose over 80% because of currency issues. This was pretty cool, since the effect of the yen had been a previous concern. Also cool was the fact that Nintendo came in ahead of estimates.

Have you ever had one of those days? Yeah, you've had 'em. I'm having one right now. I cannot believe how wrong my thesis on GameStop (GME) turned out to be. Wrong, wrong, wrong.

I honestly thought things were going to be different today. The video-game retailer would report its holiday sales and I would see a pop in my shares. I would have the opportunity to sell out at a nice price above my cost basis. A cost basis, by the way, that had been severely challenged soon after I opened the position.