The attraction of the NFT space has come to stay as more businesses and firms look to venture into the digital ecosystem to launch their ranges of products and services.
GameStop, a retail video game firm, is putting everything in place in readiness for the long-awaited move into the NFT market space and Web3 gaming following the loss of a whopping $147.5 million in the fourth quarter of last year.
The plan has been in the pipeline for a while as GameStop worked behind the scenes to build and develop its NFT site mid-last year, but hastened the preparation this year after unveiling its NFT and Web3 gaming unit in January.
GameStop also has a partnership with Ethereum’s Immutable X to provide scaling services as it continues to work on building its NFT marketplace.
The results of the Q4 of last year ended on January 29 and were published on March 17, 2022. It was revealed that GameStop plans to launch its NFT marketplace later in the second quarter of the year.
Partnership With Immutable X
The virtual game firm noted that the deal with Immutable X is a big one as it is set to provide the company with IMX tokens worth $150 million, which is subject to attaining specific milestones as agreed upon by both parties.
According to GameStop, the partnership is central to its move into the NFT marketplace. It has hired the best hands with expertise in several areas like Blockchain, technology, e-commerce, among others, to help the firm achieve its goals in no time.
The recent loss suffered by GameStop is 83% compared to the previous loss. The $1.94 loss per share is outside the official estimate range of Wall Street, which is $0.84 profit per share.
GME Price Analysis
After the publishing and subsequent release of the Q4 reports for GameStop, the price of its native token, GME, was severely impacted as it dropped off 7.31% of its value and currently trades at $81.29.
Before the release of the Qr report, the GME had been experiencing a downward spiral since the beginning of the year amid remarkable development in its Web3 projects. The early days of January saw the price drop by 40%.
Further insights into the Q4 report show that GameStop recorded $2.254 billion in sales, a small increase on the $2.122 billion recorded the previous year.
The biggest barrier to the firm’s gains is the cost accrued in sales, which is $1.87 billion, while administrative and miscellaneous expenses gulped $538.9 billion. GameStop has been struggling with saving costs as the biggest issue it faces.
The firm, however, has managed to raise funds to the tune of $1.67 billion, which is seen as enough to clear all the outstanding debts of the company.
Notwithstanding the bearish trend the NFT ecosystem has been dealing with over the last few months, as more players are in the marketplace again, so is the NFT industry.