GameStop partners with the Telos Foundation to support Web3 Gaming via Blockchain technology
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The partnership between GameStop and the Telos Foundation will attract new users by leveling Web3 barriers preventing widespread use.
Popular video game and merchandise retailer GameStop Corporation (NYSE: GME ) plans to offer more Web3 games in partnership with the Telos Foundation. The blockchain company that runs Telos’ blockchain will support GameStop’s plan by providing blockchain infrastructure through Telos.
The partnership between both companies will see Telos connect Web3 games on its blockchain via GameStop’s Web3 game launchpad Playr.
According to an official press release, the plan is to attract new users with available games in the Web3 world. The two companies also hope to solve performance issues plaguing the gaming industry. According to Telos Foundation’s Head of Business Development AJ Dinger:
“We are thrilled to enter into this transformative partnership with GameStop. We believe this partnership will be a meaningful driver for new users into the Web3 space. By combining GameStop Playr with Web3 games using Telos’ high-performance blockchain infrastructure, we break down many of the barriers that currently deter Web2 players from embracing Web3.”
GameStop and Telos Partnership emphasize diversification
Although GameStop launched and remained a brick-and-mortar service for a long time, the company is working on diversification. For example, GameStop announced a partnership with FTX.US last September. Both companies had set out to collaborate on e-commerce and online marketing plans. This partnership was announced shortly before FTX crashed and filed for bankruptcy.
In July, GameStop launched a non-fungible token (NFT) marketplace. The non-custodial Ethereum-based marketplace was for creators, players, and other interested individuals to trade NFTs representing virtual assets. In November, GameStop announced that the marketplace would support the ImmutableX blockchain platform. Through the partnership, Web3 games and assets on ImmutableX will be available for trade on GameStop’s marketplace. These include digital trading cards and plots from games such as Illuvium and Goda Unchained.
GameStop Q1 Profit
In March, GameStop published Q1 numbers, which revealed that the company realized its first quarterly profit in 2 years. News of the feat pumped GME up more than 48% in after-hours trading, repairing the 43% loss the company suffered over the previous year. The company delivered $48.2 million in profit for the quarter, equivalent to 16 cents per share. It also had net sales of $2.226 billion, close to the $2.254 billion realized in Q4 2022. Interestingly, GameStop did not issue guidance for 2023, continuing its trend of sidestepping financial predictions since the start of COVID.
To secure profits, GameStop joined several other companies that reduced their workforce in the past year. Last July, the company fired CFO Michael Recupero, replacing him with Diana Saadeh-Jajeh, Chief Accounting Officer. In December, GameStop began laying off employees, according to an Axios report. Although GameStop did not announce it publicly, a senior reporter at gaming website and blog Kotaku said CEO Matt Furlong confirmed the move in an internal email. According to Gach, Furlong said the layoffs were to align the company with profitability goals.
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