- Are these rumors or plans?
- GameStop’s representatives maintain silence
- NFTs grow in popularity
- About GameStop
GameStop plans to create a marketplace for nonfungible tokens (NFTs) for gamers in 2022. Although this has not been announced officially yet, this information from people familiar with the plans has already caused a surge in the company’s shares.
GameStop is implementing a turnaround plan to move away from the brick-and-mortar business and expand digital sales. According to an anonymous source, the company is conducting negotiations with various blockchain and crypto companies and discussing tokens that could be used on NFT marketplaces.
GameStop is also considering the idea of setting up several funds with a potential budget of up to $100 million each. These funds will be necessary to invest in the creators of NFT content and gaming companies. In the last several months, the company has hired over 20 experts to focus on developing crypto-related innovations.
Earlier, when the Wall Street Journal announced GameStop’s plans related to cryptocurrencies and NFTs, the company’s shares soared 29% in extended trading.
For months, investors have wanted to find out more about the company’s new strategy from Ryan Cohen who joined the Board of Directors and became Chairman in early 2021 with a view of accelerating the company’s growth. GameStop is not the only company that needs to expand into new markets and implement new technology due to the decline in retail game sales.
Grapevine, a company from Texas, also suffered a decline due to the move from physical cartridges to digital downloads. The situation worsened when many retail shops were closed during the pandemic. Fortunately, the company was supported by amateur investors who joined their forces on Reddit. As a result, the company’s shares rallied over 700% last year, even though the gains were not supported by much evidence. Grapevine announced that its annual revenue had declined for years.
OpenSea, the largest market for nonfungible tokens, saw an impressive surge in sales in 2021. According to Dune Analytics, the company showed the largest transaction volume of $3.4 billion in August compared to $96.7 million in February. OpenSea earns money by taking a sales commission of 2.5% on every transaction. Over the last few months, several new NFT marketplaces have appeared trying to attract users and use the same concept.
GameStop Corp. has millions of loyal fans who will certainly support the new marketplace.
GameStop Corp. is a retail network that sells consoles, video games, and gaming accessories. The company has been on the market for over 25 years, but its revenues have declined steadily since 2017. This is related to the industry’s switch to digital gaming and the development of network services such as Xbox Live. In July 2019, GameStop tried to come up with a turnaround strategy and introduce a new store format with competitive gaming and retrogaming. However, due to the COVID-19 pandemic, the company had to abandon these plans and move the sales online. In late 2020, most of the company’s gaming servers were transferred to Microsoft 365 platforms.
It should come as no surprise that now the company intends to launch NFTs. Nowadays, this is the most sensible solution that will allow GameStop to raise money and continue operating.