GameStop Says It Plans to Launch NFT Marketplace by End of July
GameStop (GME) said in its fiscal fourth-quarter earnings report that it intends to launch a non-fungible token (NFT) marketplace by the end of July.
- In February, GameStop, one of the original meme stocks, said it would be partnering with layer 2 system Immutable X for the launch of its NFT plans. In its earnings release, GameStop said the partnership would provide it with up to $150 million in Immutable X IMX tokens upon achievement of certain milestones.
- GameStop also noted that it had hired dozens of people in Q4 with experience in areas including blockchain gaming, e-commerce and technology.
- Overall, the game retailer reported a fiscal fourth-quarter loss of $1.94 per share versus the consensus analyst estimate of a gain of $0.85, according to the three analysts polled by FactSet, and quarterly revenue of $2.25 billion versus the analyst estimate of $2.16 billion.
- Shares of GameStop fell about 10% in post-market trading on Thursday.
- GameStop said on its earnings call that it sees long-term potential in the NFT market. "We recognize that our special [connection] with gamers provides us a unique opportunity in the Web 3 and digital asset world," one of its executives said on the call.
- In its February announcement of the Immutable X partnership, GameStop said it expects its NFT marketplace will include “billions of low-cost, in-game assets that can easily be bought and sold,” specifically mentioning digital real estate and in-game skins.
- Shares of GameStop surged in early January after the Wall Street Journal first reported on its plans to build an NFT marketplace and establish cryptocurrency partnerships.
This is a developing story and will be updated.