The bear market of 2022 has been brutal on video game stocks. As measured by the Global X Video Games & Esports ETF (NASDAQ: HERO), these software businesses are down nearly 50% from all-time highs and have nearly given back all their early pandemic gains.  

Video games are only growing in popularity, though, and businesses in this industry still hold tremendous long-term promise. Nintendo (OTC: NTDOY), Unity Software (NYSE: U), and Take-Two Interactive (NASDAQ: TTWO) are three stocks down at least 40% from all-time highs that could return to growth soon. Here's why. 

Nintendo's incredibly successful Switch gaming console is now six years old, and gamers (and investors, too) have been anxious for a refresh from the classic game platformer company. But the Mario creator has set no timer for itself -- at least not publicly. It's cheekily stated a new game system (perhaps a "Switch 2") will be released sometime in "20XX."

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Source Fool.com