The largest gaming retailer in the world, GameStop, plans to enter the NFT space. It will share a division in the NFT market and would partner with other cryptocurrencies.
GameStop declined to comment although people who were in the NFT space shared the news. According to various sources, the company has hired about 20 people to help with the project. They are preparing an online trading center for NFT of Virtual video games such as avatar outfits and various weapons.
People stated that it is expected that the retailer will sign agreements with many crypto companies, so it will need to invest millions of dollars.
The company is trying to recover the losses from the previous year.
During the pandemic, there has been a rise in online game playing. Many have chosen to stream games online over traditional hardcopies that are sold by companies.
Will GameStop Launch NFT Marketplace By July?
GameStop, one of the first “meme stocks”, announced in February that it would start its NFT goals with layer 2 technology Immutable X. GameStop stated in its earnings report that it will receive up to $150 million worth of Immutable X tokens if certain milestones are met, according to the Verge.
GameStop also stated that it hired hundreds of people with experience in e-commerce and blockchain gaming in the fourth quarter.
According to the three FactSet experts, the game retailer reported a loss in the fourth quarter of $1.94 per share, which was below the consensus analyst projections of $0.85 and quarterly revenues of $2.25 Billion, which were lower than the expert estimate of $2.16 Billion.
GameStop shares dropped more than 10% in after-hours trading on Thursday
GameStop’s earnings call stated that the NFT market has long-term prospects. One of the executives from GameStop stated that the company’s special connection with gamers gave it a unique potential within the Web 3 and digital assets world.
GameStop announced the ImmutableX partnership in February. It stated that their NFT marketplace would include “billions” of low-cost in-game assets that can easily be acquired and traded, specifically digital real estate and in-game skins.
The Wall Street Journal reported in January on GameStop’s plans for creating an NFT marketplace and developing cryptocurrency partnerships.