In its fiscal first-quarter earnings release on Wednesday, GameStop recorded $1.38 billion in revenue, up marginally from $1.27 billion the year before. However, it also recorded a net loss of $157.9 million, which is more than the $66 million loss in the previous quarter. In after-hours trading, stocks were slightly positive and slightly negative.
GameStop sold $673.8 million in hardware, such as gaming consoles and peripherals, accounting for 48.9% of total sales. This was down from the year-ago quarter’s $703.5 million. Software brought in $483.7 million, up from $397.9 million the previous quarter, and collectibles brought in $220.9 million, up from $175.4 million in Q1 2021.
The company’s collectibles strength this quarter, compared to the previous year’s quarter, might explain why it’s pushing on non-fungible tokens (NFTs), which have become a new form of digital memento that users can collect and resell. NFTs are digital products or artwork that are linked to the blockchain in order to authenticate the original form.The business has stated that it intends to create an NFT marketplace by the end of the current quarter, and it reiterated that timeframe in a press statement issued on Wednesday. GameStop has announced that it has taken efforts to facilitate the recent introduction of a digital asset wallet that will enable customers to transfer and receive tokens.
Since the beginning of the epidemic, the firm has not published a financial forecast. In March, GameStop CEO Matt Furlong stated that the company “does not believe it is wise to issue advice during the early phases of our transition and given the current global environment.”
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