GameStop announces partnership with FTX
Following its current strategy to break into the NFT space, GameStop announces a partnership with crypto exchange FTX.
GameStop officially cooperates with crypto exchange FTX US. It’s no secret that the past few years have been challenging for the popular video games retailer. In fact, as early as July there was a spate of layoffs at GameStop, including the company’s CTO at the time. Following the FTX partnership, it now appears that the retailer is doubling down on its NFT ambitions as GameStop offers a realignment of its operations.
The company began its NFT strategy earlier this year when it partnered with Immutable to launch an NFT marketplace. While its push wasn’t the most successful, GameStop launched its own cryptocurrency and NFTs wallet in May, followed by the official launch of its NFT marketplace a few months later. This allowed users to open a single program from the wallet to access their own funds and browse the company’s catalog of virtual currencies and assets.
In announcing its partnership with FTX, the retailer has stated that the agreement aims to introduce more GameStop customers to the FTX ecosystem. The announcement went on to say that GameStop will be collaborating with FTX on “new e-commerce and online marketing initiatives,” and the retailer will begin stocking FTX gift cards in select stores. While the company is yet to announce specific financial details, it has stated that GameStop will be FTX’s preferred retail partner in the US.
The announcement comes shortly after Gamestop released its second-quarter results, in which the company reported net revenue of $1.136 billion, down 4% year over year. It also lost $108.7 million in the quarter, which is 43% up from the year-earlier loss over the same period. Despite this, GameStop shares rose in after-hours trading, likely on the back of the FTX partnership announcement. However, time will tell if the deal with the crypto exchange will prompt GameStop stock to mimic behavior similar to last year.
Overall, the move to NFTs has received mixed reactions from the gaming community, with a notable segment opposed overall. For example, Ubisoft received major backlash from fans for its move to NFTs earlier this year, and now companies like Mojang Studios and Square Enix are avoiding the NFT market. Even GameStop’s NFT marketplace has been a tough area for the company considering even an NFT based on a 9/11 victim has been sold on the platform. Regardless, it remains to be seen how GameStopThe NFT game of will work for the retailer’s future offering in the online marketplace.
Source: GameStop
https://gamerant.com/gamestop-partnership-ftx-crypto/ GameStop announces partnership with FTX
