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$GameStop(GME)$ GameStop's got no game

Of course, one of the most recent reasons for its failing fortunes is the announcement by Microsoft (NASDAQ:MSFT) that it would be acquiring Activision Blizzard (NASDAQ:ATVI) for almost $70 billion, or $95 per share in cash. The fear is that by absorbing the video game developer into its ecosystem, Microsoft would make most or all of Activision's games exclusive to its own Game Pass platform, and this could starve GameStop for customers in the future.

The pre-owned video game market has long been one of GameStop's crutches even as the industry continues to transition to digital gaming and game downloads. Some (perhaps many) people still want or prefer physical media to play, but pulling in one of the biggest game developers could deny GameStop access.

Also, in making the acquisition, Microsoft will become the world's third largest video game company behind Sony and Tencent.

Yet GameStop's stock trading, at least today, seems more in sync with what's happening in the broader market than with any particular issue specific to video games.

Yet it also steadily lost ground. Being one of the original meme stocks means GameStop is going to be a volatile issue, and because it rarely trades on the fundamentals of its business, the video game retailer will suffer such misfortunes more regularly, just as it did today.