The much-loved video game retailer GameStop (GME) is looking at the long-awaited NFT market and Web3 games division after a net loss of $ 147.5 million in the fourth quarter of 2021.

GameStop set up an NFT core site in mid-2021, but has stepped up its efforts significantly this year after launching its NFT and Web3 gaming arm in January, and entering into a major partnership with the Ethereum (ETH) Immutable X expansion solution next month to create a website. The NFT market.

As part of the fourth quarter results, which ended on January 29 and were released on March 17, GameStop said it intends to launch the NFT marketplace by the end of the second quarter of 2022.

The company also stressed that the Immutable X deal would raise $ 150 million in IMX tokens for the company after it “reaches certain milestones”, noting that it has employed “dozens of people with experience in areas such as blockchain gaming, e trade, technology and product repair and operation. » .

GameStop’s net loss of $ 147.5 million is 83% worse than the year before, and a loss of $ 1.94 per share outside the Wall Street estimates of $ 0.84 per share.

GME’s price appears to have been significantly affected by GameStop’s fourth quarter financial release, with the price down 7.31% to around $ 81.29 at the time of writing. GME is experiencing a strong downward trend this year despite positive developments in Web3 initiatives, with prices down more than 40% since the beginning of January.

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By digging a little deeper into the report, GameStop reported sales of $ 2.254 billion in the fourth quarter from $ 2.122 billion a year earlier. The main obstacle to the latter figures was sales costs of $ 1.87 billion, while sales, general and administrative expenses were $ 538.9 million.

The company has managed to raise more than $ 1.67 billion in capital, enough to pay off “the entire company’s long-term debt, except for the unsecured low-interest loan of $ 44.6 million linked to the French government’s response to COVID-19.” ”

Despite the downward trend in the NFT market over the past two months, GameStop partner Immutable X has gained momentum. On March 8, the company announced a $ 200 million financing round in Series C, in which the valuation of IMX increased by almost 50% within 24 hours to around $ 1.78. Since then, the price has returned to $ 1.54.

Source: CoinTelegraph

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