GameStop rolling back crypto & NFTs after losing millions

Published: 2022-12-08T20:41:13

Updated: 2022-12-08T20:41:24

Video game retail chain GameStop revealed its plans to roll back its cryptocurrency & NFT projects after the company posted losses totaling millions.

Just a few months ago in June 2022, GameStop revealed plans to grow its NFT marketplace and crypto business after posting nearly $160 million in losses from March to June.

Although the retail giant claimed that these two ventures would be a huge part of making the company profitable again.

However, just six months later, GameStop announced that they are rolling back their NFT and crypto ventures after the losses continued to pile up.

GameStop

GameStop was originally founded in 1984.

In a recent earnings call CEO Matt Furlong said the company, will not risk meaningful stockholder capital in this space, and confirmed the company had a round of layoffs in corporate jobs. They also let employees go who were working on their crypto projects.

In the latest quarter, GameStop posted losses totaling $94.7 million, a number thats actually just slightly down from the previous years same quarter. Going forward, the company will focus on just three areas to make money: collectibles, gaming, and pre-owned products.

This strategy seems to be getting back to the basics for the company, which originally built its name by buying back used games from loyal customers and making big profits on console sales.

GameStop had launched their NFT platform called GameStop NFT, which is still technically in beta. Although the company had gone all-out on its plans to grow its new NFT marketplace and make advancements in the crypto space as well, those plans ended up being short-lived, not even lasting one year in total.