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• GameStop recruits new employees for the NFT platform
• NFT platform to get GameStop out of the crisis
• The video game industry sees a big advantage in NFT technology
The American distribution chain GameStop wants to set up its own platform for exchanging digital certificates of authenticity, called NFTs. According to information from the Wall Street Journal, the company has already hired more than 20 employees to oversee the platform. NFT stands for Non-Fungible Tokens, non-tradable digital goods that give ownership to the holder. GameStop now wants to integrate NFTs into the commerce of video game items such as weapons for player avatars. – Trade Bitcoin with Plus 500 – how it works. 72% of retail investor accounts lose money when trading CFDs with this provider. You must carefully consider whether you can afford to take the high risk of losing your money. – After the company searched for an analyst with crypto and NFT knowledge on its website in April 2021, there were early rumors about possible plans for the group. It is currently unknown when the platform will launch.
The distribution chain is under financial pressure
The financial situation of the American company has been strained for years. The COVID-19 pandemic has further aggravated the situation, with many consumers preferring to buy and download video games online rather than going to a store and buying a physical disc. In 2021, GameStop replaced its management team, including its board of directors, and appointed investor Ryan Cohen as its new chairman. As The Wall Street Journal points out, the new management’s efforts have so far failed to result in a significant improvement in the company’s financial performance. Although revenues increased in the third quarter of 2021, losses were higher than in the same period of the previous year. Revenue came from hardware sales while software sales were down.
GameStop stock also caused a stir last year after small investors on internet platforms like Reddit drove up the stock price, causing billions in losses to hedge funds speculating on the company’s bankruptcy. Operating an NFT platform could be a way for GameStop to recoup its financial losses. However, it remains to be seen whether this effect will actually occur.
Video game developers also want to use NFT technology
According to information from the Wall Street Journal, analysts assume that cryptocurrencies such as Bitcoin, Mooncoin or Ethereum, but also NFTs and blockchain technologies will play an important role in the video game industry in the future. Since video game consumers already spend a lot of money on virtual goods, they are the ideal target group for these technologies. NFT technology could also allow consumers to purchase virtual real estate from video games, such as Dencentraland, as well as other video game collectibles that are growing in popularity. Not only are retail chains like GameStop seeing gains in NFT technology, but various video game developers have also started selling NFTs in recent weeks or made corresponding plans for future audiences. These include companies like Ubisoft Entertainment, Zynga, and Square Enix. However, some industry representatives and players have expressed concerns. They have doubts about the value of NFTs for game developers, which is why they lack motivation to implement the technology.
Mr. Wieser / Editor finanzen.net
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