During the third quarter 2022 earnings release, Gamestop announced the suspension of its cryptocurrency-related activities due to losses estimated at $95 million over the period. This could concern its NFT marketplace and its portfolio dedicated to Web3 and gaming.
https://cryptoast.fr/gamestop-met-cryptomoneys-suspens-apres-perte-95-millions-dollars/
GameStop stops its crypto activities
The fall of the cryptocurrency market continues to impact companies in the industry. GameStop, specializing in the distribution of video games and recently landed in Web3, has announced that it will end its activities in the digital asset sector.
During GameStop’s customary quarterly earnings conference call on December 7, the company announced net losses of $94.7 million over this period. In addition, it provides for the dismissal of the staff of its department related to cryptocurrencies.
GameStop CEO Matt Furlong said he had “reduces their exposure to cryptocurrencies” and that the company “did not currently hold a huge amount of digital assets in their portfolio” :
“While we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk too much of our shareholders’ capital in this space. »
GameStop quarterly results were really bad. The turnover is 1.19 billion dollars and accuses a decrease of 8.5% compared to last year. But above all, it is well below analysts’ forecasts, estimated at 1.35 billion dollars.
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GameStop lays off massively
For now, we don’t have no more information on the activities concerned by this suspension. GameStop’s CEO hasn’t clearly mentioned any plans and no official statement has been released so far.
Furthermore, in a document recently filed with the Securities and Exchange Commission (SEC), GameStop explains that it “plans to continue to pursue other business and strategic initiatives associated with digital assets and blockchain technology.”
Since the beginning of the year, GameStop has launched many Web3-related products. Just over a month ago, the company announced the launch of its marketplace dedicated to non-fungible tokens (NFT) for gaming, in partnership with Immutable Xa second layer solution (layer 2) on the Ethereum (ETH) blockchain.
Last May, GameStop also announced a beta version of its first digital wallet dedicated to Web3 and in particular allowing players to send video game NFTs to each other.
Still, GameStop has carried out a wave of layoffs in its team, the Web3 and cryptocurrency department obviously being the most affected. The group posted a seventh consecutive loss in this quarter.
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Sources: Q3 report, SEC document
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