See More

GameStop Reports $158M Loss in Q1 2022, but Crypto Plans Showing Promise

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • GameStop reported a net loss of nearly $158 million.
  • It plans to launch its NFT marketplace in the second quarter.
  • Overall, the company’s crypto initiatives are beginning to form and could bring a boost to business.
  • promo

GameStop recorded a loss for the first quarter of this year, but its move into crypto is showing potential dividends.

The video game retailer reported a loss of $158 million in its hardware sales on sales of $1.378 billion, up from $1.277 billion during the same period last year. 

The company said that new and expanded brand relationships have helped boost sales, and that is likely a reference to its crypto efforts.

The video game retailer announced that it had partnered with Immutable X to develop and launch its non-fungible token (NFT) marketplace. As part of the deal, GameStop received IMX tokens, which it had sold for approximately $77 million. 

CEO Matt Furlong said in the earnings call: “We firmly believe that digital assets are core to the future of gaming.” And it is clear the company is going to double down on its digital assets strategy.

GameStop will release its highly anticipated NFT marketplace in the second quarter of the year. This should inject a lot of life into the company’s business, which has seen a resurgence since last year’s stock incident

It has partnered with scaling solution project Loopring to support transactions, and the service allows users to store, use and transact with crypto and NFTs.

The crypto ball in motion for GameStop

GameStop’s foray into crypto and NFTs was long rumored, but it was a while before it was confirmed, and it happened in a rather subdued manner as well. 

The company most recently launched a beta for its in-game wallet, which competes with the likes of market heavyweight MetaMask. The wallet is still in its early days, but it could be the start of a new era for GameStop.

Long-term strategies are less clear, as the company has not announced anything beyond the use of crypto and NFTs. How it will integrate these into broader, more significant partnerships and endeavors has yet to be announced, but it could have wide implications, especially for the gaming industry.

Top crypto platforms in the US | March 2024



All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...