GameStop recently shared its first quarterly report for 2022. According to the report, the gaming retail company suffered a loss of $158 million, putting it in a critical condition. As a result, GameStop announced it would upgrade its digital asset wallet and officially launch the NFT marketplace to compensate for the loss and maintain its position in the competitive market.
When COVID-19 hit the world, many physical businesses suffered from a loss and eventually went under, one of them was GameStop. Being one of the most popular gaming physical retail stores since the last century, it was hard for GameStop to maintain its sales. As a result, the company decided to open an online retail shop and regained its momentum in the market.
Since then, GameStop has been constantly making efforts to become an online ecommerce store to triumph against its competitors.
GameStop 1st quarter report 2022
According to the 1st quarter report of 2022, GameStop earned $2.08 per share and generated around $1.38 billion in revenue.
The report was dated until April 30, 2022. The sales were divided into categories, the company earned around 48.9% of sales from hardware, around $673.8 million, it managed to make $483.7 million from software, and $220.9 million through collectibles.
Among these three, GameStop earned the most from collectibles, making it a potential category for the company to focus on.
In a meeting for the quarterly report, CEO Matt Furlong explained “During Q1, we specifically focused on two main areas: continuing to rebuild and strengthen our commerce business after years of underinvestment, and pursuing growth opportunities in the cryptocurrency, NFT, and Web3 gaming protocols.”
GameStop enters the NFT industry
In May 2022, Gamestop launched a digital asset wallet that would enable users to buy, sell, and trade NFTs through cryptocurrencies. Many people believed it wouldn’t serve any purpose since the company had no apparent presence in the marketplace.
But the company’s intentions were unwrapped when it announced the launch of an NFT marketplace later this year where individuals can use its digital asset wallet to trade non-fungible tokens. The creators are welcome to signup to list their NFT projects on the marketplace by filling out the form here.
In a way, it is trying to bring in creators and enough customers before the official release.
So far, GameStop has launched a beta version of its NFT marketplace on Immutable X to test the waters that went live on March 25, 2022. The company intends to use the digital market as its source of income in the coming years.
Although the public or NFT community hasn’t shown much enthusiasm, GameStop is optimistic that this project will be quite successful.
CEO Matt said, “It is important to stress the GameStop had become such a cyclical business and so capital-starved that we have had to rebuild it from within.
“We’ve also had to change the way we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming,” He added.
GameStop’s first quarterly report for 2022 revealed many interesting aspects of how the company is operating and trying to recover from its revenue loss when compared to last quarter’s report.
Although the CEO reassured its stakeholders that it would maintain its strong long-term stock value by investing its time and money in the digital market, he didn’t do any Q/A session with reporters to share any financial guidance or roadmap for people to understand what future path it will take.
He said he does not feel “it’s prudent to provide guidance during the early stages of our transformation and with the current global backdrop.”
As of now, GameStop has launched the test version of the NFT marketplace. Once it is launched, the company might share some important details on what it plans to do next.
See the full GameStop quarterly report here.