Gamestop (NYSE:GME) looks remarkably cheap by all traditional measures, the company trades for about five times cash flow, has no debt, and has a cash-rich balance sheet. However, this rock-bottom multiple comes with good cause. The ecosystem for this company continues to erode. As gaming at large moves away from retail middlemen like GameStop, and toward a direct download or streaming model, the company doesn't look positioned for a rebound anytime soon.

Austin Smith has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard. The Motley Fool owns shares of Activision Blizzard, GameStop, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.