Throughout the last decade, GameStop’s company has struggled as more and more people opt to buy video games online.
Sony’s decision to release a computer-only PlayStation 5 is indicative of a growing trend, and the company is looking to capitalize on the lucrative NFT industry, which was estimated to be $25 billion in 2017.
Despite efforts from companies like Ubisoft and Square Enix, gamers have so far resisted NFTs in the context of their favorite games. GameStop plans to sell non-transferable tokens to customers directly rather than including them in games. On Monday, the game store dispatched its very own NFT commercial core.
GameStop has its own crypto-wallet in addition to its freshly launched e-commerce hub. Tokens issued from a blockchain that represent ownership of digital assets serve as NFTs. These tokens can be thought of as digital equivalents to a property’s deed.
Some argue NFTs are a passing fad that will fizzle out once the bubble bursts, but proponents say they will permanently alter the online economy. NFTs are a lucrative industry due to the many advantages they offer.
The NFT Marketplace
About $17 billion has been spent on Ethereum-put-together NFTs with respect to OpenSea’s commercial hub this year, as reported by Dune Research. Since OpenSea receives a 2.5% commission on every NFTs sold through its platform, the company’s 7-month revenue has totaled around $425,000,000.
NFTs were all the rage in the video game industry. Then, of course, there were the hacks and the stock market crash.
People who play video games have always despised virtual goods, long before NFTs came along. The current crypto meltdown has dampened enthusiasm for all things blockchain, which is bad news for GameStop.
Most NFTs are acquired with Ether, a cryptocurrency that has dropped in value by about 70% since the beginning of the year. The total value of NFT transactions on OpenSea dropped from $2.5 billion in May to $696 million in June. Even though it is certainly more difficult for a newcomer like GameStop to succeed in the current market climate (with ether now resting at about $1,000), there is sufficient market movement for an established organization like OpenSea to advance.
GameStop’s retail hub is built on Ethereum. So unlike Solana, it does not now sell any blockchain-based NFTs; instead, it specializes on high-end artwork. Since the market currently does not offer blue chip assortments like Bored Ape Yacht Club, Doodles, or Cool Cats – assortments famous among NFT dealers, but expensive to many people. GameStop is evidently counting on its current client base to dabble in NFT exchanging.
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Web3 gaming, which refers to games that employ NFTs and digital currencies, will eventually become a bigger part of the commercial hub. To that end, GameStop has reached out to Immutable, a company with experience in blockchain gaming.
For those Web3 designers who step up to the plate, the two are offering a $100 million prize. This announcement arrives at a crazy moment for GameStop. Last week, as part of a larger round of layoffs across the board, the company fired its CFO.
According to Kotaku’s report, GameStop CEO Matt Furlong reassured employees in an email. It contains that the company’s gradual transition to blockchain technology. Also, it will be reflected in the gradual development of its trading business. Additionally is the release of new products through its blockchain group. After the end of April, the company revealed $157 million in total deficits in its most recent quarterly financial report.
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