As GameStop revealed a significant flop in its quarterly earnings, its CEO said it would shift its focus to recover, disclosing its latest commercial partnership with FTX.
GameStop is Pairing With FTX to Pull Its Business Back After Loss
According to a story from the Wall Street Journal, after experiencing subsequent operational failures, the Texas-based company GameStop reported an extensive revenue loss on Wednesday, September 7. This went simultaneously with the announcement of its association with FTX as part of its recent business venture.
Compared to its revenue in the same period last year, GameStop said that its second-quarter loss for 2022 has dropped to $1.18 billion, gaining only a total net sale worth $1.14 billion (via CNBC). As a result, its deficits rose to $108.7 million (36 cents per share) in total, which is $47. 1 million larger than how much it lost the previous year, which was only $61.6 million.
Having said all this, one of its new board chairman, CEO Matt Furlong said that GameStop would start shifting its focus to bounce back from its flat fall. His statement was pertaining to the firm's newest business venture in partnership with FTX, as it launched a Non-Fungible-Token (NFT) marketplace the other month. In its new platform, users can purchase, sell, or exchange their NFTs for GameStop's offered digital items.
Additionally, to curb its financial struggles, the firm has decided to dismiss several of its workforces after it has hired approximately 600 individuals starting in 2021. With this decision, GameStop let go of Mike Recupero, its top financial officer, alongside other employees. As a result of this, the firm's expenses were reduced to 14% in the first quarter.
With its collaboration with FTX, the firm would start carrying FTX gift cards in particular stores as part of its new e-commerce and online marketing initiatives. This is despite the fact that the partnership has somehow influenced GameStop's laughed-about image.
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GameStop Enters Crypto Industry With FTX
Upon making an official joint business collaboration with FTX, GameStop is starting to make its way to the realms of cryptocurrency. The Verge reported that it has already laid out a roadmap for its new business journey and partnership.
By launching its own NFT marketplace and crypto wallet, GameStop has already taken a complete jump into the blockchain realm, and this partnership follows closely in its footsteps.
Although both businesses have not provided any specifics of how things will go, the video game electronics firm has shared a bit of its plans. According to them, it aims at making FTX's crypto assets through its networks and markets be accessible to GameStop clients.
Because FTX has regarded the American electronics firm as its primary retail partner, it could suggest that GameStop will sooner or later become the cryptocurrency exchange's spot to offer its items.
With what GameStop has been putting itself into, and considering that it is now working with a widely acknowledged crypto exchange, it is very evident that the business is serious about putting itself forward in the blockchain business.
FTX is remarkable for putting a significant amount of financial effort into advertisements that were displayed during the Super Bowl, as well as other sports teams and leagues, as means to promote itself. In fact, just a year ago, it decided to change the name of American Airlines Arena, where the Miami Heat plays their home games, to FTX Arena. It has made such possible upon paying the staggering sum of $135 million.
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