According to sources close to the firm, GameStop Corp is establishing a division involving the corporation in cryptocurrencies and non-fungible tokens. It is considered an endeavor to serve as a watershed moment for the company’s faltering video gaming business.
Video game merchants were once one of the largest industries in the world. When physical copies were still popular, consumers would throng to stores like GameStop to get their hands on their copy of a game. Some go so far as to queue for pre-order releases hours before official business hours, even establishing long lines in the process. It felt like being on cloud nine since there was so much hype about becoming a video game store. But that was before digital releases, which, though not immediately, pulled the attention away from physical stores.
Although there is still a strong need for printed discs, many customers have opted for convenience. This means opting to go digital, which they can accomplish from the comfort of their own homes rather than having to leave the house to go to the store. However, this issue has never been more pressing than with the recent outbreak of the pandemic, which has caused people to stay indoors to stop the spread of the coronavirus.
We've said GGs to 2021, and now it's almost time to bid our End of Year Sale a fond farewell.
Today's your last chance to save big on the loot you love. Don't miss out: https://t.co/SH4UKTZPO4 pic.twitter.com/dhLBqINI5l
— GameStop (@GameStop) January 1, 2022
And when people stopped buying video games from retailers, the industry died slowly and painfully. Despite its position as one of the industry’s leaders, GameStop was not immune to this. But, even if things aren’t going well, it has the means to survive for the time being. It may even be able to spin itself around as it deems fit.
Insiders allege GameStop’s plan to pivot towards cryptocurrencies and NFT, a recent move that might perhaps keep the struggling corporation afloat. Lucrative ventures that generate large cash flows in the market. Unsurprisingly, this has piqued the interest of a number of companies, including Square Enix and Ubisoft, among others.
GameStop’s stock has been depreciating in recent weeks, much to the chagrin of its investors. However, the company is still valued at $10 billion, which is a sufficient valuation. Although lesser in comparison to OpenSea, which just raised $300 million, the company’s valuation has risen to $13 million.
