CORRECTION (March 17, 21:20 UTC): A previous version of this story incorrectly stated that GameStop plans to launch its NFT marketplace by the end of April.
GameStop (GME) said in its fiscal fourth-quarter earnings report that it intends to launch a non-fungible token (NFT) marketplace by the end of July.
- In February, GameStop, one of the original meme stocks, said it would be partnering with layer 2 system Immutable X for the launch of its NFT plans. In its earnings release, GameStop said the partnership would provide it with up to $150 million in Immutable X IMX tokens upon achievement of certain milestones.
- GameStop also noted that it had hired dozens of people in Q4 with experience in areas including blockchain gaming, e-commerce and technology.
- Overall, the game retailer reported a fiscal fourth-quarter loss of $1.94 per share versus the consensus analyst estimate of a gain of $0.85, according to the three analysts polled by FactSet, and quarterly revenue of $2.25 billion versus the analyst estimate of $2.16 billion.
- Shares of GameStop fell about 10% in post-market trading on Thursday.
- GameStop said on its earnings call that it sees long-term potential in the NFT market. "We recognize that our special [connection] with gamers provides us a unique opportunity in the Web 3 and digital asset world," one of its executives said on the call.
- In its February announcement of the Immutable X partnership, GameStop said it expects its NFT marketplace will include “billions of low-cost, in-game assets that can easily be bought and sold,” specifically mentioning digital real estate and in-game skins.
- Shares of GameStop surged in early January after the Wall Street Journal first reported on its plans to build an NFT marketplace and establish cryptocurrency partnerships.
This is a developing story and will be updated.
UPDATE (March 17, 20:31 UTC): Added overall quarterly results.
UPDATE (March 17, 20:45 UTC): Added additional information in first and second bullet points.
UPDATE (March 17, 21:44 UTC): Added info from earnings call and other details in last three bullet points.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.