Gaming retailer GameStop says that will no longer focus any efforts on cryptocurrencies, after amounting to $94.7 million in net losses in the third quarter and laying off staff from its digital assets department.
The GameStop CEO, Matt Furlong said on 7th December that proactively minimized exposure to cryptocurrency over the year and does not currently hold a material balance of any token.
Before this year the company said that was looking at crypto along with nonfungible tokens (NFTs) and Web3 applications as avenues for growth calling those spaces increasingly relevant for gamers of the future. Going forward that will shift focus to collectibles, gaming, and pre-owned items.
That moves in the NFT space are still seemingly going ahead as that says that is also pursuing, and plan to continue to pursue, other business and strategic initiatives associated with digital assets and blockchain technology according to the 7th December filing with the Securities and Exchange Commission (SEC). GameStop confirm that would continue efforts on that NFT marketplace but did not receive a response.
GameStop has pushed numerous Web3-related products, the most recent being that is the NFT marketplace that went live on ImmutableX, an Ethereum layer-2 blockchain on 31st October following a July public beta.
Before that NFT marketplace, in May the company launched a beta self-custody crypto wallet and beta NFT marketplace on Loopring in March, Loopring is another Ethereum-based layer-2 protocol.
That also partnered with the now bankrupt crypto exchange FTX US in September aimed at bringing more customers to crypto and working together on e-commerce and online marketing initiatives. That ended ties with the exchange on 11th November soon after that filed for bankruptcy.
That Q3 loss slightly narrowed compared to the second quarter, however, which saw losses of $108.7 million. That’s also a year-on-year improvement for GameStop, which posted a $105.4 million loss in Q3 2021.
On 5th December GameStop cut multiple staff in that is the third round of layoffs for 2022 which Furlong confirmed in the earnings call.
An earlier report suggested that the team working on the company’s blockchain and NFT projects was the most impacted however Furlong did not specify where the staff cuts were concentrated during the call. Earlier posts from people claiming to be former employees have shed some light. Daniel Williams lead software engineer at GameStop wrote in a 5th December LinkedIn post:
Other posts from those claiming to be affected by the cuts also appeared on LinkedIn at the time. Brandon Jenniges a former IOS and blockchain engineer posted that he had a great time getting a deep dive into Ethereum and learning about many new things in the crypto space.
The company terminated July that CFO Michael Recupero and a several staff at that video game focused magazine Game Informer.