GameStop executes Executive Shift by removing the driving force behind the NFT venture – CryptoMode
In a surprise twist, Matt Furlong, the central force behind GameStop’s leap into the non-fungible tokens (NFTs) sphere, has been relieved of his duties as CEO. This decision comes after the gaming giant’s overwhelming results for the first quarter.
Things are not looking good for GameStop
GameStop, known worldwide as a titan of the gaming industry, announced on June 7, 2023 that it had dismissed Furlong, the orchestrator of its strategic pivot towards NFTs. No specific reason was given for the sudden departure, but the move coincides with its first-quarter earnings report that fell short of market forecasts by a staggering 133%.
Furlong’s successor is Ryan Cohen, a billionaire investor who won the admiration of meme stock traders after the infamous GameStop card press in 2021. Cohen’s promotion to the role of executive chairman was immediately followed by a cryptic tweet that cryptically read: “Not for long.”
Unraveling the Executive Upheaval
Details from a document filed with the United States Securities and Exchange Commission on June 9, 2021, reveal that Furlong’s contract included a clause for two years of continuous employment. At the same time as his resignation, Furlong also resigned as a director, thereby reducing the size of the board to five members.
Furlong’s tenure as CEO began in June 2021, marking the aftermath of the meme stock frenzy that escalated GameStop’s stock by an astounding 3,000% — from $17.25 to $500 — in just one month.
However, following the announcement of Furlong’s departure, the company’s share price fell 19% to a disappointing $21, as reported by Google Finance.
Navigate the NFT Marketplace
Furlong’s legacy includes spearheading the launch of GameStop’s NFT Marketplace in June 2022, in line with market interest in NFTs. GameStop then expanded its support for blockchain gaming NFTs by partnering with the Web3 gaming platform and Ethereum’s layer-2 scaling solution, ImmutableX.
The NFT marketplace had an impressive start, collecting close to $2 million in sales within 24 hours. Unfortunately, the platform’s success was short-lived. By August, daily sales volume had dropped drastically, averaging just $4,000 – a significant 99.8% drop from opening day numbers.
Refocusing the GameStop business strategy
In the last quarter of 2022, after a disappointing third quarter earnings, GameStop strategically decided to distance itself from cryptocurrencies and NFTs. The company reported a net loss of $94.7 million and began reducing staff.
Despite their public shift in focus, GameStop recently partnered with Illuvium, an Australian-based blockchain game developer, to unveil a 20,000 NFT collection. This move signals a sustained interest in the NFT sphere, even in the face of a leadership shakeup and financial underperformance.
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