The Cryptocurrency Detour

In a stunning turn of events, GameStop has announced it will no longer be pursuing its crypto ambitions after reporting a staggering $94.7 million net loss in the third quarter of the year. During a recent earnings call, CEO Matt Furlong made it clear that the gaming retailer has decided to “proactively minimize exposure to cryptocurrency.” Sounds like it’s time for GameStop to take a break from the digital coin excitement, don’t you think?

Long-Term Potential? Not for Us!

Furlong remarked that while the company sees potential in digital assets for the future of gaming, they won’t be risking any substantial stockholder capital in the chaotic world of crypto. In other words, GameStop isn’t putting all its eggs in the cryptocurrency basket, and honestly, who could blame them after this fiscal fiasco?

Goodbye Crypto, Hello Collectibles

With crypto dreams dashed, GameStop is refocusing its efforts on more familiar territory: collectibles, pre-owned games, and the thrilling world of physical merchandise. Remember when buying old games was both a nostalgic trip and a treasure hunt? It seems GameStop is banking (pun intended) on this love from gamers.

NFTs Still in the Mix

But wait, there’s a twist! GameStop hasn’t entirely closed the door on non-fungible tokens (NFTs). According to filings with the SEC, the company is “continuing to pursue other business and strategic initiatives associated with digital assets and blockchain technology.” So, while they’re taking a breather from cryptocurrencies, don’t pull the plug on their NFT marketplace just yet.

Buffing Up the NFT Marketplace

On October 31, their NFT marketplace went live on ImmutableX, an Ethereum layer-2 blockchain. This follows beta launches of their self-custody crypto wallet and an NFT marketplace, hinting that GameStop still wants a stake in this digital frontier, albeit cautiously.

Layoffs Paint a Grim Picture

As GameStop grapples with its losses, the company has not only cut its crypto aspirations but also faced multiple rounds of layoffs in 2022, with a recent round impacting its blockchain and NFT teams. This could be a case of unfortunate timing or a strategy of focusing down the hatches.

• Lead software engineer Daniel Williams shared his despair over LinkedIn, hinting at cutbacks across e-commerce and product engineering.
• Brandon Jenniges, a former blockchain engineer, revealed his bittersweet closure in a reflective post about working with Ethereum.

Yikes! It seems like the crypto rats are abandoning the ship, or at least the engineers are. So, while GameStop claws back to stability and reflects on its crypto escapade, it is a time of transition—if not a little drama—for this iconic gaming giant.