Due to a downfall in revenue, GameStop decided to cut down its efforts on the crypto-focused development works.
GameStop Corp. is a Texas headquartered American video game, consumer electronics, and gaming merchandise retailer. At present time, this company is the biggest video game retailer worldwide. This company was initially founded in 1984 but later rebranded its name to its current name.
On 7 December, During the earnings calls, GameStop CEO Matt Furlong said the company is proactively minimising its exposure to digital assets” over the year, and also in the present time company is not holding funds in any of the digital assets.
The company CEO said that he believes that cryptocurrencies have significant potential for the gaming sector but the company will not take risks for the capital of investors & stockholders of the company.
“Although we continue to believe there is long-term potential for digital assets in the gaming world, we have not and will not risk meaningful stockholder capital in this space,” Matt said.
Earlier this, in June 2022, GameStop said that the company was focusing on Crypto, Web3 & NFTs applications because of the increasing demand of the growth of the gaming sector to the next level. At that time, the company confirmed that the digital assets sector may play a significant role in bringing a new future for the gaming industry through a better experience.
However, the company stated that it is ditching its focus from Cryptocurrencies but confirmed that its efforts remain unchanged toward the NFTs or collectibles focussed development works and also will keep the other business and strategic initiatives associated with digital assets and blockchain technology.
GameStop was also in partnership with the FTXUS exchange, which is now bankrupt. FTXUS & GameStop were planning to bring new users into the crypto sector & also to promote their corresponding business under innovative marketing initiatives. On 11 November, GameStop suspended its partnership with FTXUS forever.
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