Shares of GameStop (NYSE:GME) opened sharply lower this morning, and it only got worse from there.
Heading into the last hour of trading Monday, the video game retailer was down more than 10%, giving back a part of the massive run-up it enjoyed in April.
Investors may be taking some profits off the table following those gains since GameStop still faces a difficult future. Many questions need to be answered.
For example, while Microsoft (NASDAQ:MSFT) says its new Xbox game console is still on track for release later this year, an event many GameStop investors have been waiting for to jump-start sales at the retailer, the tech giant expressed doubt video games themselves would be similarly on time.
Because game developers have had to work remotely, as at many other companies during the coronavirus pandemic, their ability to get new titles to market in time for the Xbox or Sony's (NYSE:SONY) new PlayStation console may be compromised.
A delay in titles may slow sales of consoles for GameStop.
Sony has said its much anticipated (and delayed) game The Last of Us Part 2 will debut in June, though a leak of cut scenes and more caused an uproar among avid gamers, who were not at all excited about the direction Sony and developer Naughty Dog were taking.
It remains to be seen whether the momentum GameStop had before having to close all of its stores can resume when they reopen.