The group could also invest tens of millions of dollars in start-ups specializing in cryptoassets. GameStop stock jumped 20% when Wall Street opened.
How to reinvent its economic model when fewer and fewer consumers go to specialized stores to buy their video games? This question, the American channel GameStop (owner of Micromania in France) has been asking for years. The distributor first bet on the sale of derivative products around pop culture: figurines, t-shirts, books, stuffed animals … It could now turn to another popular sector: crypto-assets and more particularly NFTs. (non-fungible tokens).
According to information from the Wall Street Journal, GameStop will develop a platform where consumers can buy and resell NFTs related to the world of video games. This would make it possible, in particular, to put on the second-hand market virtual purchases such as accessories and outfits for his hero – something impossible today. GameStop is legitimate in this market. Historically, its stores have always bought back their customers’ video games and then offered them at reduced prices in “good deals bins“.
GameStop is also said to be riding success with NFT’s trading platform investors. The OpenSea site is thus valued at 13 billion dollars after a fundraising of 300 million dollars at the beginning of the week from the Coatue and Paradigm funds. But these platforms are only known to insiders, whereas GameStop, given its notoriety among consumers, could popularize NFT exchanges with the general public. This dimension would explain the positive reaction of Wall Street. Shortly after the publication of the Wall Street Journal, the GameStop share soared 30% in pre-market trading, then opened at + 20% on Friday. The action rose to + 4% at midday. GameStop’s market cap is now $ 10 billion.
Video games turn to NFTs
But you still have to have NFTs to sell. The world of video games using “non-fungible tokens“, That is to say a title deed on a single digital object, is today restricted to a niche of start-ups working on”blockchain games“. With the notable exception of Axie Infinity in Southeast Asia and Latin America, a sort of Pokémon where players can resell their creatures, none of these titles have made their mark on Western players.
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Things could change, however. At the end of 2021, the French giant Ubisoft carried out a first market test by publishing 3 NFTs for its PC game Ghost Recon: Breakpoint. Another French heavyweight, the publisher of mobile games Voodoo, champion of fun applications called “super casual», Announced that he was going to invest $ 200 million to integrate NFTs in his future titles designed for the general public.
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The CEO of Japanese publisher Square-Enix (Final Fantasy, Dragon Quest…) has unveiled a strong interest in the blockchain ecosystem in its wishes for the new year. “Adding decentralized games to our portfolio will be a major strategic focus for our company from 2022», Says Yosuke Matsuda. For its part, the Japanese Konami will put on sale on January 12 a dozen NFTs to celebrate the 35th anniversary of its Castlevania license.
GameStop looking for a new strategy
the Wall Street Journal explains that GameStop has spoken with publishers and video game studios to offer them to distribute their NFTs on its future platform. It should also turn to start-ups specializing in blockchain games and invest in their productions. He could also enter the capital of companies linked to the crypto universe and devote several tens of millions of dollars to it.
This strategic move towards NFTs, which has not been officially confirmed, would be the mark of GameStop’s new direction. The latter was replaced during 2021 after the incredible surge in the action, driven by small carriers from the Internet and who, for the most part, were taking their first steps on the stock market.
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Billionaire Ryan Cohen, 36, has stepped up as chairman of the board and is looking to transform the GameStop brand. Among his ideas, extend the range of products sold to accessories to stream parts on Twitch (webcams, lighting, microphone …) and strengthen e-commerce activities by shortening delivery times, improving customer service and posting more competitive rates.