Quick take:
- GameStop announced on Wednesday a net loss of nearly $160 million.
- The company said on Thursday it is targeting NFTS and Web3 for growth.
- The online video game and accessories retailer has recently pivoted to the Web3 space with the launch of an NFT marketplace for video games.
GameStop says it will focus on the Web3 space to drive future growth after reporting a net loss of nearly $160 million for the first quarter of 2022. The company pivoted to NFTs and in-game crypto earlier this year through partnerships with leading blockchain companies like Immutable X. It has since proceeded with its plans to launch the beta version of its NFT marketplace for games last month.
In the Q1 earnings conference call, GameStop said: “Crypto, NFTs, and Web 3.0 will all be increasingly relevant for gamers of the future.”
The company’s fiscal first-quarter 2022 loss ballooned from about $67 million in Q1 2021 to $157.9 million, partly due to its intensive investment in Web3 products.
The company attributed the loss to the transition period as it continues to shift from its perceived brick-and-mortar retailer without a future into a “technology-led organization.” Looking to the future.
The company is looking to rebuild and strengthen its commerce business following several years of underinvestment, GameStop wrote in a statement.
It is particularly looking to leverage the explosive growth of the Web3 space to harness the power of NFTs and gaming and make crypto a major growth vertical for its business.
These segments will be “increasingly relevant for gamers of the future,” the company said. The company has already announced its NFT marketplace for video games and accessories, which will allow users to store, send, receive, and use cryptocurrencies and NFTs across “decentralized apps.”
Although several mainstream gaming companies remain sceptical about NFTs in gaming, GameStop seems to be among the few that are ready to embrace the new paradigm shift. The company believes that this is the future of gaming, thus making the industry category an exciting one for Web3 gaming companies.
Its commitment to Web3 is illustrated by its joint $100 million grant launch with Immutable to help onboard more startups to the future of gaming.
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