GameStop Is Getting Into NFTs And Cryptocurrency
GameStop is reportedly getting into NFTs, joining the ever-growing list of video game-related businesses that have decided to take a stab at making non-fungible tokens and cryptocurrency part of their future plans.
According to the Wall Street Journal, GameStop hired more than 20 people in a new team dedicated to creating a marketplace platform “for buying, selling and trading NFTs of virtual video game goods.” This non-fungible storefront is planned to go live later this year and will host NFTs from select game developers and publishers.
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WSJ also reported that GameStop is looking to invest in development of blockchain and NFT games and has almost finished signing partnerships with two crypto companies. GameStop is expected to pour “tens of millions of dollars” into such projects and is looking for more crypto companies to partner with.
GameStop is hardly the only company wanting to ride the NFT trend. Ubisoft and Square Enix have also announced their interest in NFTs and blockchain games. Ubisoft released Quartz, a system where in-game items become NFTs and can be traded between players. Quartz, so far, is only active in Ghost Recon: Breakpoint on PC. Square Enix, on the other hand, didn’t release anything so concrete as an NFT ecosystem or game, but announced its intentions to continue investment in blockchain R&D.
It’s clear that GameStop is searching for a way to increase profits, especially since consumers have shifted more to downloading games versus purchasing physical editions at retailers. While the company’s stocks enjoyed a bump during the Reddit-fueled frenzy where individual investors snapped up GameStop stocks, recent revenue data has been more of a mixed bag. In an earnings report, GameStop lost $100 million in the last three months but did generate a revenue of $1.3 billion, a better turnout than last year’s $1 billion.
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