In an innovative partnership, GameStop Corporation (NYSE:GME), a renowned video game and merchandise retailer, has joined forces with the Telos Foundation to usher in a new era of Web3 gaming via blockchain technology. By collaborating with the Telos Foundation, the company aims to expand its collection of Web3 games while leveraging the blockchain infrastructure provided by Telos.
Through this exciting alliance, Telos will connect Web3 games on its blockchain platform using GameStop’s Web3 game launchpad, Playr. As outlined in the official press release, the main goal is to attract a new wave of users to the Web3 realm by offering an accessible gaming experience. Additionally, both companies are seeking to tackle the performance challenges plaguing the gaming industry head-on. AJ Dinger, Head of Business Development at the Telos Foundation expressed his enthusiasm by stating:
“We are excited to begin this transformative collaboration with GameStop. We are very confident that this partnership will play an important role in introducing new users to the Web3 space. By combining GameStop’s Playr platform with Telos’ high-performance blockchain infrastructure, we are able to overcome many of the barriers that prevent Web2 players from using Web3.”
The GameStop and Telos partnership underscores GameStop’s commitment to diversification. While GameStop has long been associated with brick-and-mortar retail, the company has been actively exploring new horizons. In September last year, GameStop announced a partnership with FTX.US to enhance its online marketing and ecommerce initiatives. This collaboration was formalized shortly before FTX ran into financial difficulties and filed for bankruptcy.
July saw GameStop launch a non-fungible token (NFT) marketplace, enabling creators, gamers, and fans to trade NFTs that represent virtual assets. Operating on the Ethereum blockchain, this non-custodial marketplace facilitates the exchange of digital trading cards and land plots from popular games such as Illuvium and Goda Unchained. In November, GameStop further expanded the NFT market by integrating with the ImmutableX blockchain platform, allowing to trade games and Web3 assets. This move solidifies GameStop’s position as a leading player in the ever-growing world of blockchain-based gaming.
Earlier this year, GameStop hit an important milestone by posting its first quarterly profit in two years. The company’s Q1 numbers showed remarkable progress, with earnings of $48.2 million, or 16 cents per share. The achievement sparked a surge in GME stock, rising more than 48% in after-hours trading and offsetting the 43% loss it experienced during the previous year. Net sales for the quarter totaled $2.226 billion, closely matching the $2.254 billion recorded in Q4 2022. Notably, GameStop refrained from providing financial guidance for 2023, following the trend of avoiding predictions since the start of the COVID-19 pandemic.
GameStop, like many other companies, has experienced workforce reductions to ensure continued profitability over the last year. Last July, the Chief Financial Officer, Michael Recupero was dismissed, with Diana Saadeh-Jajeh as Chief Accounting Officer. Furthermore, in December, GameStop began a series of layoffs, as reported by Axios. While the company hasn’t publicly acknowledged these layoffs, CEO Matt Furlong confirmed the decision in an internal email, aligning the workforce with profitability targets, according to a senior reporter at gaming site and blog Kotaku.
GameStop’s partnership with the Telos Foundation marks another milestone in the company’s ongoing transformation. By leveraging blockchain technology and collaborating with innovative industry players, GameStop is poised to revolutionize the gaming landscape, empowering.