By George Ward
GameStop, a gaming company, has decided to stop all crypto-related initiatives. This is coming after the gaming company suffered a net loss of $94.7 million in Q3 2022. Also, the gaming giant has laid off many staff members from its crypto department.
GameStop Focuses On Only NFTs And Blockchain
Earlier in the week, Matt Furlong, the CEO of GameStop, announced the company’s decision. Furlong added that the company no longer holds digital tokens in its portfolio.
“We believe crypto has huge potential in gaming in the long run. However, we have decided not to risk the capital of stockholders in the crypto space at the moment,” the CEO said.
At the beginning of 2022, GameStop noted that it was evaluating the crypto sector, especially Web3 applications and NFTs. At the time, GameStop said the crypto industry was gaining massive acceptance in the gaming world.
However, the gaming firm has taken a different route and will focus on digital collectibles and gaming items. The company’s recent filing with the US financial regulator reveals it will pursue blockchain and digital collectibles-related initiatives.
Meanwhile, GameStop is familiar with the NFT space. The gaming giant has launched several Web3-based products. For instance, the company launched its NFT marketplace on ImmutableX, an Ethereum-based blockchain.
Before launching an NFT marketplace, the company launched a beta NFT market on Loopring, an Ethereum-based protocol. In May, GameStop introduced a beta self-custody cryptocurrency wallet on Loopring.
GameStop Cuts Ties With FTX And Continues Layoffs
In September, the giant firm collaborated with the now-bankrupt crypto firm FTX. The GameStop-FTX partnership aimed to enhance crypto adoption.
Both entities were also to work on various online marketing projects and e-commerce. However, GameStop severed allies with FTX on November 11th following the latter’s bankruptcy filing.
Meanwhile, the firm’s losses in Q3 2022 dropped compared to its Q2 2022 losses of over $108.7 million. Hence, it is a vast improvement in its Q3 year-on-year performance.
GameStop recorded a loss of $105.4 million in Q3 2021. On December 5th, GameStop sacked several employees, as Furlong disclosed in a recent statement.
This layoff was GameStop’s third in 2022. Earlier sources indicated that staff working on the firm’s NFT and blockchain were the most hit. However, during a recent earnings call, the CEO did not state which categories of workers were affected.
Meanwhile, some comments from individuals claiming to be past employees gave clues as to the class of employees affected by the layoffs. On December 5th, a lead software engineer at the gaming firm, Daniel Williams, posted on LinkedIn about the matter.
He said, “Gamestop is conducting another round of layoffs. Those affected include E-commerce Product Engineers.”