On Monday, Gamestop, introduced a long awaited NFT marketplace to aid its business by cashing in on consumer adoption of cryptocurrencies and blockchain technology.
The retail giant now allows beta testing for its users to connect with their digital asset wallet including the recently launched GameStop Wallet. Thus allowing them to buy, sell and trade virtual goods as over time they would expand to offer other features such as Web3 gaming.
Ryan Cohen, the Chewy founder and investor, is aiming to uplift the company by investing in the digital future. After many years of financial downfalls, Gamestop pushes for a turnaround as a majority of videogames have now shifted online.
Cohen made an investment in GameStop that contributed to the stock’s spectacular rise in 2020. Furthermore, he also hired new corporate executives with individuals like the present CEO and former Amazon executive Matt Furlong.
The Investors have ridiculed and written off ‘Gamestop’, as they try to win over them. In addition to their namesake business the EB Games and Micromania banners, they also operate in 4,573 stores worldwide with 3,018 stores in the U.S.
With a projected $54M transaction value of retailers from the NFTs through November to December, GameStop is planning to tap into NFTs for growth facing mixed reactions from the industry.
The video game retailer has struggled to stem losses in recent years, even as its sales of hardware, software and collectibles grow. As they now try to break through an NFT marketplace with the likes of established companies such as OpenSea.
Shockingly!! Gamestop’s journey into NFTs has not been a cakewalk, as they recently fired Mike Recupero, their finance chief, stating that “he was not the right culture fit”.
Last year, the company amounted to losses worth $66 million net loss on $1.27 billion in revenue, however, this year they have accounted for a net loss of $158 million on revenue of $1.27 billion.
With GameStop swinging to losses since the start of covid-19 pandemic, they are making investments to drive customer loyalty and build up its brand.