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In the midst of a crypto-storm, Gamestop has decided to take a risk and launch its own NFT marketplace.
Source: Ars Technica
A global player in the videogame market, GameStop operates 4,573 stores across the United States, Canada, Europe and Australia.
The decision to launch its NFT marketplace comes alongside two other major decisions, a 4 for 1 stock split and the layoff of Chief Financial Officer Michael Recupero.
These decisions come under the management decisions orchestrated by GameStop Chairman, Ryan Cohen. Ryan Cohen joined the company board as an activist investor.
GameStop mainly operates in the retail side of videogames and consoles.
The company sells their videogames in the form of CDs, now an outdated form of videogames since end users prefer digital downloads or cloud gaming.
GameStop’s set of quick moves concerning investment, management and company capital suggest their eagerness to capitalize on emerging digital markets.
Although the company is flush with cash ($1.271 billion), much of it coming from last years stock sale in June, thanks to the Reddit community’s efforts to pump up it’s share value, GameStop is still operating at a loss.
In it’s fiscal year of 2021, the company reported a loss of $381 million.
This year, in a three-month period ended April 30, the company reported a net loss of $157.9 million on a revenue of $1.38 billion.
While the company’s revenue is large, GameStop is not able to overcome the large expenses that come with running physical retail stores such as shipping costs, warehouse costs, physical inventory, retail employees wages and store maintenance.
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