One of the most popular memes on the internet, GameStop, is putting all of its money into NFTs and cryptocurrencies. A fresh report from The Wall Street Journal claims that the corporation has assembled a team of more than 20 people to work on an online marketplace for virtual goods, including cosmetic skins and in-game stuff.
They’re looking for partnerships with crypto firms to help develop the underlying technology and invest in games that use NFT and blockchain technology, and they’re hoping to negotiate deals with them to do so. GameStop’s investments in crypto could total tens of millions of dollars, according to the Wall Street Journal’s report, which includes deals with over a dozen additional corporations.
GameStop Reportedly Working on NFTs
The Verge’s request for response from a GameStop spokeswoman went unanswered at first.
GameStop is rumoured to be attempting to resuscitate its business, which has been battered in recent years by consumers’ preference for purchasing games online rather than through traditional retail channels. Chief executive Matt Furlong (who joined from Amazon last year) announced in December that the company was studying future technologies, while job listings for Web3 and NFTs first appeared in October.
Games are seen as early adopters of NFTs since gamers are already used to spending money on virtual items like decorative clothes and weapon skins, according to the Wall Street Journal (WSJ). Both Square Enix and Electronic Arts have openly stated their interest in NFT technology, while Ubisoft debuted an NFT platform in late 2013
In contrast, gamers’ reactions to in-game NFTs have been largely negative, with many deeming them useless and a marketing ploy by corporations that have been selling virtual goods without the need for blockchain technology for years. Many people were outraged by GSC Game World’s original intentions for NFT in their games, and the company swiftly retracted them; on the other hand, Valve has stated that it will not allow games to use NFT on its Steam store.
Day traders sought to inflate GameStop’s stock price and punish short sellers around a year ago, leading to the publication of The Wall Street Journal report. It is, however, still struggling financially, despite the company’s investments and attempts at a turnaround. Despite significant revenue increases, the company’s losses were expanding last month, according to its most recent report. Despite the fact that the WSJ’s publication on the company’s NFT intentions caused its stock price to rise over 22%, the company’s share price has been declining over the past month and a half.