According to speculation in various news outlets and blogs, Activision Blizzard (NASDAQ: ATVI) may end up doing something with its huge cash position. The software publisher, most famous these days for its Guitar Hero property, has around $3 billion in its coffers. The question is, should Activision Blizzard spend its cash on an acquisition as opposed to doing other things with the money, like pay a special dividend or increase its buyback?

Considering that assets are cheap because of the recession, I'd say that a little shopping might not be such a bad idea. Here's an article that discusses the possibility of Activision Blizzard taking over Take-Two (NASDAQ: TTWO) distributor of Grand Theft Auto. Then there's the concept of buying up THQ (NASDAQ: THQI). Perhaps the company could take Mortal Kombat off the corporate hands of Midway Games.

THQ (NASDAQ: THQI), arch competitor of Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: ERTS), closed under $10 per share on Monday; $9.90 to be exact. It hit a new 52-week low of $9.30 intraday. I've got to admit, THQ under $10 a share sparks my interest.

I also must concede that my interest might be a bit on the irrational side to some degree. After all, I was a big fan of THQ during the time oh so long ago when all its cylinders were firing and the stock was a pretty cool investment. Now that it's hit the magical spectrum of single-digit, does that event alone changes things on a fundamental level? Am I just looking for a reason to buy a stock I once liked and praised?

As of late, problems have befallen THQ. Questions about the quality of its pipeline and delays of key video-game product have plagued the publisher. Indeed, THQ was a weakening company and a weak stock. Why invest in THQ when Activision Blizzard exists? There's definitely sound logic to such thinking. However, THQ is around book value at $10 per share. And the fact that THQ has some cool intellectual properties at its disposal (Destroy All Humans!, Saint's Row, etc.), as well as a cool licensing partner in Viacom (NYSE: VIA) and its Nickelodeon characters, means you've got to figure that the company might start becoming a value at some point.

In a move that may help video game giant Electronic Arts (NASDAQ: ERTS) compete more effectively with the new Microsoft (NASDAQ: MSFT) "Halo 3," the company has agreed to buy two game publishers.

According to The Wall Street Journal, EA will purchase VG Holdings Corp., the parent company of game makers BioWare Corp. and Pandemic Studios. The game studios create nice ultra-violent games like Destroy All Humans! The companies were owned by Elevation Partners and according to the paper, "the deal is the first time Elevation, which counts U2 singer Bono among its partners, has cashed out of one of its investments."

EA said it will pay as much as $620 million to VG Holdings and $155 million in equity to certain employees.

Electronic Arts could use the help. "Halo 3" sold $300 million in its first week on the market. EA does $700 million in a typical quarter. And games like Destroy All Humans! give the company a product to attract young males buyers of games in which large numbers of humans and aliens are destroyed in a short period.

At $59, EA's stock is near its 52-year top. The new purchase could help push it higher.

Douglas A. McIntyre is a partner at 24/7 Wall St.