GameStop is officially partnering up with crypto exchange FTX US. It's no secret that the past few years have been challenging for the popular videogame retailer. In fact, there was a wave of layoffs at GameStop back in July, including the company CTO at the time. Following the FTX partnership, it now appears that the retailer is doubling down on its NFT ambitions as GameStop bids to realign its business operations.
The company already began its NFT strategy early this year when it partnered up with Immutable to launch an NFT marketplace. Although its push hasn't been the most successful, by May, GameStop introduced its own wallet for cryptocurrency and NFTs, followed by officially launching its NFT marketplace a couple of months later. This enabled users to open one singular program via the wallet to access their own funds as well as browse through the company's catalog of virtual currencies and assets.
Announcing its partnership with FTX, the retailer has stated that the agreement is aimed at introducing more GameStop customers to FTX's ecosystem. The announcement further reads that GameStop will collaborate with FTX on "new e-commerce and online marketing initiatives" and the retailer will start carrying FTX gift cards at select stores. Although the company is yet to share any specific financial details it has stated that GameStop will be FTX's preferred retail partner in the US.
The announcement comes shortly after Gamestop posted its second-quarter results where the company reported a $1.136 billion in net sales, down by 4% compared to last year. It has also lost $108.7 million during the quarter, which is 43% more than the previous year's loss for the same period. Despite this, GameStop stocks went up in after-hours trading, likely owing to the FTX partnership announcement. Though time will tell if the agreement with the crypto exchange will prompt GameStop stocks to emulate a similar behavior as last year.
Overall, the pivot to NFTs has received mixed reactions from the gaming community with a notable segment opposing it altogether. For instance, Ubisoft received major backlash from fans over its move to NFTs early this year and now companies like Mojang Studios and Square Enix are avoiding the NFT market. Even GameStop's NFT marketplace has been a tricky space to navigate for the company considering how even an NFT based on a 9/11 victim was sold on the platform. Regardless, it remains to be seen how GameStop's NFT play will work out for the retailer's future bid in the online market space.
Source: GameStop