In a groundbreaking partnership, GameStop Corporation (NYSE: GME), the renowned video game and merchandise retailer, has joined forces with the Telos Foundation to usher in a new era of Web3 gaming through 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 gaming launchpad, Playr. As outlined in the official press release, the primary objective is to attract a fresh wave of users to the Web3 realm by offering accessible gaming experiences. Additionally, both companies strive to tackle the performance challenges plaguing the gaming industry head-on. AJ Dinger, the Head of Business Development at the Telos Foundation, expressed his enthusiasm, stating:
“We are thrilled to embark on this transformative collaboration with GameStop. We firmly believe this partnership will play a pivotal role in introducing new users to the Web3 space. By combining GameStop’s Playr platform with Telos’ high-performance blockchain infrastructure, we can overcome many barriers hindering Web2 players from embracing Web3.”
The GameStop and Telos partnership underscores GameStop’s commitment to diversification. Although GameStop had long been associated with brick-and-mortar retail, the company has actively explored new horizons. In September of last year, GameStop announced a partnership with FTX.US to enhance its e-commerce and online marketing initiatives. This collaboration was unveiled shortly before FTX experienced financial difficulties and filed for bankruptcy.
July saw GameStop launch a non-fungible token (NFT) marketplace, enabling creators, gamers, and enthusiasts to trade NFTs representing virtual assets. Operating on the Ethereum blockchain, this non-custodial marketplace facilitated the exchange of digital trading cards and land plots from popular games like Illuvium and Goda Unchained. In November, GameStop further expanded its NFT marketplace by integrating with the ImmutableX blockchain platform, allowing for trading Web3 games and assets. This move solidified GameStop’s position as a leading player in the evolving world of blockchain-based gaming.
Earlier this year, GameStop achieved a significant milestone by posting its first quarterly profit in two years. The company’s Q1 figures demonstrated remarkable progress, with a profit of $48.2 million, or 16 cents per share. This achievement sparked a surge in GME stock, rallying over 48% in after-hours trading and offsetting the 43% loss experienced over the previous year. Net sales for the quarter amounted to $2.226 billion, closely matching the $2.254 billion recorded in Q4 of 2022. Notably, GameStop refrained from providing financial guidance for 2023, following its trend of avoiding predictions since the onset of the COVID-19 pandemic.
GameStop, like many other companies, underwent workforce reductions to ensure sustained profitability over the past year. Last July, the Chief Financial Officer, Michael Recupero was let go, with Diana Saadeh-Jajeh assuming the role of Chief Accounting Officer. Subsequently, in December, GameStop initiated a series of layoffs, as reported by Axios. Although the company did not publicly acknowledge these layoffs, CEO Matt Furlong confirmed the decision in an internal email, aligning the workforce with profitability targets, according to a senior reporter at the gaming website 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.