GameStop continues to face a decline in sales despite recently launching its marketplace “GameStop NFT”. So, what’s in store for the gaming company next?
GameStop continues to endure hard times as quarter sales decline despite efforts regarding the gaming retailer’s NFT marketplace, GameStop NFT.
Nevertheless, GameStop continues on the Web3 train, disclosing a new partnership with crypto exchange FTX just last month. Reasons include, to introduce more customers to FTX’s community and its marketplace, alongside other blockchain-related incentives.
The gaming retailer is doing all it can to become an innovative gaming store. Although, despite continuous efforts, GameStop has lost over 30% of its value this year.
But will GameStop’s Web3 plans save the gaming company?
GameStop’s Web3 Adventure
GameStop began its blockchain adventure in February 2022, following struggling to sustain in-store sales. The retailer first announced a partnership with Immutable X—a layer 2 scaling system focusing on Web3 gaming on the Ethereum blockchain.
A few months later, in May 2022, GameStop launched a non-custodial crypto wallet so members could store, send, and receive NFTs and crypto. The extension works alongside GameStop’s NFT marketplace, established as a public beta version on July 11.
The marketplace is built on the Ethereum blockchain, using the Layer2 scaling product Loopring for processing transactions. Reasons include scalability and cheaper transaction fees that cost less than a cent. Other perks include actual ownership and an easy-to-use wallet;
The initial launch was a success and led to more than $7.2 million (5K ETH) in trading volume in its first week. But, unfortunately, it was as good as it got.
Last month, the company partnered with FTX to introduce more GameStop customers to FTX’s community and its marketplaces for digital assets. In addition to the collaboration, GameStop now sells FTX gift cards in select stores.
The company also recently announced a new perk for loyalty members, offering competitive trading NFT cards “Gods Unchained” on GameStop NFT as it looks for new ways to revitalize its business. But is it enough?
Recent Hurdles Into Web3
As we all know, the gaming industry has been going through a tough time due to being able to stream the majority of video content online for free, etc.
This is one of the main reasons that’s led GameStop to delve into Web3 and create a marketplace. However, the company continues to struggle to drive profits regardless.
Unfortunately, the markets are currently bearish on NFTs, not helping the success of GameStop NFT. According to CNBC, GameStop’s stock is down about 36% this year, bringing its value to $7.31 billion.
Another reason which has not helped the gaming company’s marketplace includes facing backlash regarding minting insensitive 9/11 images:
Following this, the company now views all content before the minting process takes place.
What’s in Store for GameStop?
The decline in sales has led to GameStop trimming costs, alongside shaking up leadership—laying off employees across departments and firing its chief financial officer (CFO).
However, according to Valuates Reports, the NFT market size shall reach around $7.40 billion by 2028, from $1.55 billion in 2021. Thus, the market is estimated to have a CAGR of 24% between 2022 and 2028. GameStop’s NFT investments may not be a complete waste of time.
GameStop’s momentum in the Web3 space has gamers believe the video game retailer has a share in the sector. We look forward to seeing how the company’s new CFO manages GameStop’s finances and whether or not Web3 continues to be the prime focus.
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