Jim Cramer On Videogame Stock

CNBC’s Mad Money with Jim Cramer was more interesting than usual for gamers tonght, as the show featured talk on the videogame industry and videogame company stock. After mentioning how he thinks Capital One Financial (NYSE: COF), a major credit card issuer and the company behind the “What’s in your wallet?” ads with David Spade, is a buy, Cramer went bullish on videogame stocks, which he had previously been bearish on. “It’s possible that the videogame industry will become the big story in the media over the next five years,” said Cramer.

First up, Cramer mentioned retailer GameStop (NYSE: GME), who is sure to earn more money with the videogame industry growing. Then, Cramer mentioned Microsoft (NASDAQ: MSFT), makers of the upcoming Xbox 360. Cramer did mention that he would have liked an earlier release of the Xbox 360, but that the November 22nd release date was acceptable.

Cramer also mentioned how companies are now paying videogame publishers to get their ads in the game. Specific examples included ads around racetracks and on items worn by characters or players in sports titles. “Experts say this [advertising in games] could be a billion dollar business by 2010,” said Cramer.

Cramer is bullish on Electronic Arts (NASDAQ: ERTS) and Activision (NASDAQ: ATVI) specifically, and rated EA as “best in breed,” even though the stock wasn’t cheap. “If you’re willing to hold it [ERTS] for three years, I think you’re going to make a lot of money,” On Activision, Cramer said he expects to see 20% growth a year.

Cramer was not-so-bullish on Atari (NASDAQ: ATAR) and Take-Two Interactive (NASDAQ: TTWO), however. Cramer said that he did not “have a good feel about Atari.” During the “Lightning Round” portion of the show, a caller asked about Take-Two and Cramer warned investors to stay away from Take-Two in light of possible problems with Congress.

Cramer then moved onto discuss the oil industry.eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeYour text to link…