GameStop is the world’s largest retail gaming and merchandise destination. As Netflix did with Blockbuster, digital platforms such as Steam did with GameStop. Although still valued at a whopping $10 billion, it is under a lot of performance duress. Since last year, GameStop Corp has been in the news. Short-sellers were betting for it to go under, but the retail investors shocked the world by reviving it. For the comeback to be worth it, GameStop is now eyeing a budding market; NFTs. Is it going in the right direction, and will it work? Let’s answer all GameStop NFT questions today.
There is no doubt that GameStop was once one of the largest companies. However, it could not make its mark in the video game streaming industry. Hence, its slow death began. For the last three years, the retailer saw a declining revenue and climbing debt.
Then, in Fall 2020, the game company made Ryan Cohen, Chewy’s co-founder, its chairman. In fact, the whole board of directors was overhauled. But that was not enough – another unprecedented move changed the company’s fate.
Due to its declining revenue, short sellers were getting in line waiting for it to finally go under. But social media, particularly Reddit, turned it into a meme-stock. Retail investors started pouring in tons of money which rose the share price.
Recently, Wall Street Journal reported on Jan 6 that the retail games company was making a huge shift in its core business. Instead of selling games, they would now be selling NFTs on the new GameStop NFT marketplace.
Non-Fungible Tokens are digital assets or tokens based on blockchain technology. The driving force behind them is the cryptocurrency rise. You can read more about them on our blog, we are also about to drop a new collection that you can check out.
As soon as the report by Wall Street Journal came out, the shares saw a price increase of over 20 percent. You can imagine the interest of people in cryptocurrency and the NFT market. Major crypto markets, such as OpenSea, are proof of blockchain technology’s success in the digital realm. However, it is still to be answered if this crypto move will help GameStop NFT.
Ryan Cohen understands that the game company can only stand if it shifts the business towards blockchain technology. According to the January WSJ report, they have created a new division, of 20 people, working on the GameStop NFT marketplace. They are working to work out new deals with game developers and crypto companies. It means the marketplace could feature in-game items, skins, and other NFT content. Interestingly, these deals could be worth tens of millions of dollars as the retailer shifts towards this new venture.
NFTs are proving to be worth the hype – the trading volume keeps on increasing as the hours pass. However, it does not mean that it is easy in these markets. And GameStop already has tough competition.
If you have ever played an Assassin’s Creed game, you would know that Ubisoft is a big player in the gaming market. And they have already launched their NFT marketplace called Quartz. The NFTs will be called Digits on this platform, and the first game to grace it will be Ghost Recon Breakpoint. However, it did not go as smoothly as they experienced severe backlash from their users. But they are still adamant about investing in the cryptocurrency-based NFT business.
EA, developer of Need for Speed, Half-Life, and FIIFA games, has not yet stepped into the crypto realm. However, their CEO says that they view NFTs and blockchain as the future of the industry. So, we can safely assume that GameStop NFT will have another competitor in the coming years.
Similarly, the CEO of Square Enix, who gave us Final Fantasy, thinks highly of blockchain technology and NFTs. However, they too have experienced backlash from people regarding their crypto plans.
OpenSea, the largest and one of the best NFT markets, is valued at $13 billion. A newcomer, LooksRare, suddenly challenged the domination with its AirDrop. It might look irrelevant, but each new development is an insight into the crypto market.
What we understand by this is that there is room for growth. Since technology is so new, everybody wants a piece of it. And it delivers. An Indonesian boy became a millionaire by selling his selfies as NFTs. Can you imagine? That’s how much potential this online revolution carries.
But there is another aspect when it comes to GameStop NFT. Investing in cryptocurrencies and Non-Fungible Tokens has been good for most people and companies. But game developers have seen a lot of backlashes, as discussed. Gamers argue that NFTs don’t add any substantial value to the game, other than being a cash cow for the developers. Whereas, the companies say that the extra revenue can further help in the production of better games.
Unless they figure out a system that actively rewards players, such as the play-to-earn model, they will be at an impasse.
GameStop NFT is the strategy of the company to reposition itself in the evolving NFT realm. It is a daring move, but they do not really have any other move left. Only time will tell if this move plays out well for them. We, at Yo-4rt, are rooting for anything NFT, and we wish them the best.
