Game companies suffered disproportionately last week, as panicked investors sought to take what profits they could from companies like Electronic Arts and Activision Blizzard.

Game companies are popular with institutional investors, who were selling stocks in droves last week, wiping billions off the collective value of the game companies. Michael Pachter at Wedbush said, “Sell first, ask questions later. It"s an insane overreaction."

He believes games should be holding up better than the market, “We"re still going to spend the same amount of hours entertaining ourselves. It"s just a matter of which entertainment we choose to buy, and games are still perceived to be a super value."

But some fear a consumer spending squeeze this Holiday, which will inevitably affect the games market.

Source: Oregonian