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Video game stocks look a bit frothy, says Brean Capital

Brean Capital is maintaining their positive stance on the gaming group but believes the stocks are beginning to look a bit frothy. The firm expects this console cycle to be kinder to third party publishers than last cycle but still expects pressure from prior generation obsolescence. Individually Brean Capital believes Electronic Arts (EA) is seeing pressure on current gen titles, Activision (ATVI) is seeing competition which makes them cautious, and with Take-Two (TTWO) they need to see sustainable earnings.