- GameStop shared the financial reports of the second quarter showing a decline in sales.
- The company announced a partnership with FTX as a new strategy.
- The launch of NFT and Web3 gaming helped to establish this partnership.
Gaming Retailer GameStop announced a partnership with United States crypto exchange FTX US, advancing its strategy to increase its presence in the cryptocurrency space.
On Wednesday, GameStop said in a statement that the partnership with FTX will introduce the company’s customers to the FTX ecosystem. The company assured that the partnership would make GameStop FTX’s “preferred retail partner in the United States”.
GameStop had already launched a digital wallet to enable transactions for gamers to buy and sell NFTs in partnership with Ethereum (ETH) Immutable X. In Wednesday’s statement, the retailer added that certain GameStop retail stores will start selling FTX gift cards.
Though the financial terms of the partnership weren’t disclosed, GameStop released the financial reports for the second quarter of the fiscal year 2022, which showed nearly a 4% decline. But soon after the news, it showed a rise of about 12%.
GameStop’s unveiling of the NFT and Web3 gaming division in January and the launch of the NFT marketplace in July contributed significantly to its partnership with FTX. The company CEO Matt Furlong in its Q2 earnings call announced that the partnership focused to yield something “unique”.
The deal we just announced with FTX is a by-product of our commerce and blockchain team, working hand-in-hand together to establish something unique in the retail world.
Furlong added that the partnership would support the company’s long-term pursuit for growth in cryptocurrency, NFT, and Web3 gaming, by which it can reverse the languishing sales in the pandemic years and thus bolster its e-commerce capacity.
Wedbush analyst Michael Patcher commented that the FTX partnership is unlikely to yield meaningful revenue or profit. “But it sounds good, so that’s a positive”. It is to be added that the marketplace would allow gamers to connect their own digital asset wallets.
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