GameStop Partners with Telos Foundation to Support Web3 Gaming via Blockchain Technology
The partnership between GameStop and Telos Foundation will attract new users by leveling Web3 barriers preventing widespread adoption.
Popular video game and merchandise retailer GameStop Corporation (NYSE: GME) plans to provide more Web3 games in collaboration with the Telos Foundation. The blockchain company powering the Telos blockchain will support GameStop’s plan by providing blockchain infrastructure via Telos.
The partnership between both companies will see Telos link Web3 games on its blockchain via GameStop’s Web3 gaming launchpad Playr.
According to an official press release, the plan is to attract new users with accessible gaming in the Web3 world. The two companies also hope to solve performance problems plaguing the gaming industry. According to Telos Foundation Head of Business Development AJ Dinger:
“We are thrilled to enter into this transformative collaboration with GameStop. We believe this collaboration will be a meaningful driver of new users into the Web3 space. By combining GameStop Playr with Web3 games utilizing Telos’ high performance blockchain infrastructure, we can break down many of the barriers currently deterring Web2 players from embracing Web3.”
GameStop and Telos Partnership Underscores Diversification
Although GameStop launched and remained a brick-and-mortar service for a long time, the company is working on diversification. For instance, GameStop announced a partnership with FTX.US in September last year. Both companies had set out to collaborate on e-commerce endeavors and online marketing plans. This partnership was announced shortly before FTX crashed and filed for bankruptcy.
In July, GameStop launched a non-fungible token (NFT) marketplace. The non-custodial Ethereum-based marketplace was for creators, gamers, and other interested people to trade NFTs representing virtual assets. By November, GameStop announced that the marketplace would support the ImmutableX blockchain platform. Via the partnership, Web3 games and assets on ImmutableX will be available for trading on GameStop’s marketplace. These include digital trading cards and land plots from games like Illuvium and Goda Unchained.
GameStop Q1 Profit
In March, GameStop published figures for Q1, which revealed that the company realized its first quarterly profit in 2 years. News of the feat pumped GME by more than 48% in after-hours trading, repairing the 43% loss the company sustained over the previous year. The company posted $48.2 million in profit for the quarter, equal to 16 cents per share. It also posted net sales of $2.226 billion, close to the $2.254 billion realized in Q4 of 2022. Interestingly, GameStop did not post guidance for 2023, continuing its trend of sidestepping financial predictions since COVID started.
To ensure profit, GameStop joined several other companies that reduced their staff strength over the past year. Last July, the company fired its Chief Financial Officer Michael Recupero, replacing him with Diana Saadeh-Jajeh, the Chief Accounting Officer. By December, GameStop began laying off employees according to an Axios report. Although GameStop did not publicly announce it, a senior reporter at gaming website and blog Kotaku said that CEO Matt Furlong confirmed the move in an internal email. According to Gach, Furlong said the layoffs were to align the company with profitability targets.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
