GameStop Corp. is allegedly setting up a division that will see the company dabbling in both cryptocurrency and non-fungible token, people privy to the business claim. It is said to be an effort aimed as a turning point for the company’s struggling enterprise in the video game space.
Video game retailers were once one of the biggest businesses out there. At the time when physical copies were still all the rage, people flock to locations such as GameStop in an attempt to get ahold of their own copy of a game. Some even go to the extent of queueing hours before official business time, even starting long lines in the process, for pre-order releases. Such was the hype about being a video game store was like being in a cloud nine. But that was before digital releases came into the picture, which, while not immediately, took the spotlight away from physical shops.
Convenience of going digital
Although there still remains a pulsing demand for printed discs, a lot of people have been opting for convenience. This meant choosing to go digital, which they can just do at the comfort of their own homes, instead of having to leave home for the store. But this issue has not been more pronounced than with the recent onset of the pandemic, which sees people staying indoors to control 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 going to retailers for their video game needs, the business go in a slow and painful death. GameStop, despite its status as being one of the leaders of the business, was not necessarily immune to that. But while things aren’t doing good, it has at least the means to survive for a while. Even have the capacity to turn itself around as it sees fit.
A shift to cryptocurrency, NFT
In a recent move that could potentially keep the suffering business afloat, insiders claim of GameStop’s plan to pivot into cryptocurrency and NFT. Lucrative endeavors that see massive cashflows in the marketplace. Which, unsurprisingly, have been getting the attention of companies lately, the likes of which include Square Enix and Ubisoft, among others.
GameStop’s stocks have been getting devalued in recent weeks, much to the impatience of its investors. However, the company remains $10 billion in worth, which is a still good enough valuation. Albeit smaller in comparison to OpenSea, which recently just raised $300 million, raising its own evaluation to $13 million.
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