Roughly a year ago, GameStop made headlines when their shares skyrocketed up to 1600% due to a surge of amateur short stock day trading on Reddit. However, GameStop has been struggling overall in recent years as gamers have increasingly been moving from purchasing physical video games to buying them as digital downloads.
This physical-to-digital game buying migration has put GameStop in a squeeze because much of their business has been through the purchase of hard copy games at their many brick-and-mortar stores.
GameStop, NFTs, and Crypto
Moving into NFTs and cryptocurrency appears to be part of a broader plan to turn GameStop’s business around. It’s been reported that GameStop has built a 20-member team dedicated to creating an online marketplace for selling NFTs and cryptocurrency.
The idea is that this marketplace would sell digital assets. This could include items like unique avatars, cosmetic skins, weapons, vehicles, locations, and other in-game goods, some with varying levels of rarity to elevate their value and real-world price tag.
Many gamers could be early adopters of this marketplace. They’ve already shown they’re willing to spend big real-world money on in-game digital items, which can help them customize their gaming experience and give them bragging rights over their teammates and competitors. However, other fans have had mixed reactions to NFTs in gaming, with some seeing in-game purchases as a way for companies to “nickel and dime” their gaming experience.
All of this comes at a time when many companies are testing the waters of a related phenomenon, the metaverse, which is a virtual universe of shared online worlds populated by digital avatars. It’s expected that millions of metaverse players will want their in-game avatars to have unique skins, gear, and other items, which they’ll buy from an NFT marketplace.
How GameStop Will Get There
Part of GameStop’s plan includes partnering with game developers and publishers to create and list NFTs on its marketplace, along with further developing the technology with the help of crypto companies.
GameStop’s NFT and crypto marketplace concept is not unique; many such digital marketplaces are popping up all over the web. OpenSea, the world’s largest and most well-known NFT marketplace, is currently valued at over $13 billion.
It’s being speculated that GameStop’s investment in these technologies could extend into the tens of millions. In addition, a new page on GameStop’s website is inviting those interested to fill in a form requesting to become an NFT creator.
The Bottom Line
GameStop is reportedly getting into NFTs and crypto in a big way with their planned digital marketplace selling digital in-game items in the hopes that it will help turn the company’s lagging performance around.
At least initially, it may already be working: GameStops’s stock recently jumped over 20% after reports surfaced of its NFT and crypto marketplace plans.
