FTX will help GameStop with its NFT strategy.
The partnership between GameStop, an American chain of video game stores, and FTX, a cryptocurrency trading platform, aims to bring more GameStop customers to the FTX community and its digital asset markets. In addition to partnering with FTX on new e-commerce and online marketing initiatives, GameStop will begin offering FTX gift cards at select stores. For the duration of the partnership, GameStop will be FTX’s preferred business partner in the US.
GameStop reported mixed results in the second quarter but showed it is leaning towards a strategy shift towards NFTs by announcing a partnership with cryptocurrency exchange FTX https://t.co/yXN33LWGll.
— Bloomberg Crypto (@crypto) September 7, 2022
This deal builds on GameStop’s previous forays into NFTs, including last June’s launch of a digital asset wallet allowing players to store, send and receive cryptocurrencies and NFTs. In July, the company also launched an NFT marketplace to trade these assets, despite the fact that sales of such digital artworks have declined due to the collapse of the crypto industry.
GameStop’s transition to NFT is not yet profitable
The NFT pick has yet to materialize in GameStop results. Net revenue fell 4% to $1.14 billion in the second fiscal quarter. GameStop’s net loss almost doubled to $108.7 million. GameStop’s strategy has also gone through several changes in recent years as video game sales have shifted from physical discs to online downloads. Much of its retail business has been wiped out during Covid-related “lockdowns”and results have been further impacted by new restrictions on console shipments. Total video game spending in the second quarter was down 13% year-over-year.