It's a prediction market based on game sales. The price of stocks in a game or console rises and falls based on what other people think the final sales figures will be.
The futures market for consoles is real, in that sales figures are used to detemrine payout. The game ones aren't as sales figures for games are so hard to come by, so stocks can rise and fall on hype and idiocy. The makers have said they will step in with infinite money to correct any bubbles caused by fanboys ignoring sales data, but so far it seems to be working.
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