GameStop Corp. today released financial results on the company’s Investor Relations platform for the first quarter ended April 30th, 2022.

The gaming retailer in the midst of transformation will also host an investor conference call at 5:00 pm ET to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

The Company also announced it has continued hiring individuals with experience in areas such as blockchain gaming, ecommerce and technology, and operations.

The Company’s Form 10-Q and supplemental information can be found at investor.GameStop.com

First QUARTER OVERVIEW

Net sales were $1.378 billion for the quarter, compared to $1.277 billion in the prior year’s first quarter.

Sales attributable to new and expanded brand relationships contributed to the Company’s growth in the quarter.

Inventory was $917.6 million at the close of the quarter, compared to $570.9 million at the close of the prior year’s first quarter, reflecting a continued focus on improving in-stock levels in merchandise to meet increased customer demand and offset supply chain headwinds.

Ended the period with cash and cash equivalents of $1.035 billion as well as no debt other than a low-interest, unsecured term loan associated with the French government’s response to COVID-19.

Took steps to support the recent launch of a digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (“NFTs”) across decentralized apps. The wallet extension will enable transactions on GameStop’s NFT marketplace upon its intended launch in the second quarter.

Continued hiring individuals with experience in areas such as blockchain gaming, ecommerce and technology, and operations, including a new Chief Operating Officer with a background in retail and stores.

WEBCAST AND CONFERENCE CALL INFORMATION

The webcast with management is scheduled for June  1, 2022, at 5:00 p.m. ET to discuss the Company’s fourth quarter activities and financial results. This call, along with supplemental information, can also be accessed at GameStop’s Investor Relations. The phone number for the call is 877-451-6152 and the confirmation code is 13730321. This webcast will be archived for two months on GameStop’s investor relations website.

Source: GameStop Newsroom, Form 10-Q

GameStop’s crypto wallet is here, marking the company’s realization of the transition from a retailer into a technology company.

GameStop has announced the company’s much-anticipated release of the GameStop Wallet, a digital asset wallet that allows gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens across decentralized apps without having to leave their web browsers.

GMEdd.com’s Discord was first to notice the release of the GameStop Wallet at 7:05 PM EST on Sunday, thanks to a bot that searched the Chrome Extension Store every 5 minutes for new search results under ‘GameStop’. Readers can join the GMEdd.com chatroom to be at the forefront of crowdsourced research by visiting GMEdd.com/chatroom.

The GameStop Wallet is a self-custodial Ethereum wallet. The wallet extension, which can be downloaded from the Chrome Web Store, will also enable transactions on GameStop’s NFT marketplace, which is expected to launch in the second quarter of GameStop’s fiscal year.

The GameStop Wallet Beta allows users to trade and transfer digital assets on both Loopring Layer 2 (L2) and Ethereum Layer 1 (L1) under the same wallet address. L2 offers users transaction fees as low as 0.1% of Ethereum L1’s exorbitant gas fees.

What does the GameStop Wallet do?

The GameStop Wallet isn’t just an ordinary crypto wallet.

Harnessing the power of Loopring’s zkRollup – an Ethereum Layer 2 scaling protocol – GameStop gives users low cost and fast transactions, with Ethereum security, opportunity, and global reach. This allows users to reduce gas fees and network congestion, while always remaining in control of their funds.

Images from GameStop Wallet’s Chrome Extension Store page

GameStop states that the Wallet is “great for n00bs and power-users alike,” and that GameStop Wallet can be your homebase and portal into the world of Ethereum.

The wallet is also connectable to the wide ecosystem of Ethereum dApps, “including GameStop NFT – a marketplace to buy digital goods!”

Available now at wallet.gamestop.com, users are prompted to create a new wallet or recover an existing wallet with their 12 word seed phrase.

Screenshot of GameStop Wallet Beta’s launch screen as of May 23rd 2022.

During the four step wallet creation process that involves writing down a 12 word seed phrase and setting a password, the Wallet states that “Loopring Layer 2 is preferred for higher transaction speeds and lower fees.”

In October 2021, GMEdd.com first followed digital breadcrumbs to conclude that GameStop was partnering with crypto technology company Loopring to power a bridge of traditional e-commerce and blockchain. Days later, GMEdd.com published source code that revealed Loopring was in-fact hard at work building GameStop an NFT Marketplace of their own.

Now, the speculation becomes reality.

Screenshots of the wallet creation process from the GameStop Wallet Beta Google Chrome extension.

Once the wallet is set up, users are prompted to deposit funds by buying with a card or transferring funds from an existing L1 or L2 wallet.

GameStop Wallet is GameStop’s Metamask replacement, currently the most popular hot wallet. GameStop’s offering, though, is much more complete than it’s rival’s, as GameStop recognized the value in creating a blockchain ecosystem where users don’t need to rely on third-party services.

The GameStop Wallet enables anyone to easily swap fiat into crypto and then use that crypto to purchase digital assets on GameStop NFT, all in one place, making it easier for newcomers to adopt the technology.

GameStop’s wallet and Metamask’s wallet side by side.

A quick analysis of the user interface and design of the two wallets reveals why GameStop is advertising their wallet as “easy-to-use.”

While Metamask’s wallet shows all of its features on one screen, GameStop’s wallet has an intuitive navigation bar that allows each of its four main features to have their own screen. This includes viewing of NFTs, which isn’t available in Metamask.

Two of the biggest barriers of NFT mass adoption is the complicated wallet set up process and high gas fees; GameStop’s new wallet solves both of these problems with its user friendly onboarding design and native L2 integration that eliminates gas fees.

A comparison of fees on GameStop Wallet versus MetaMask.

At the time of publication, an $11 transaction executed on Layer 2 through GameStop Wallet only costs the user $0.22 in fees, while the same transaction on Layer 1 through MetaMask costs the user between $10.07 and $19.75 in gas fees.

While MetaMask’s gas fees translate to a 91% to 179% transaction fee in this instance, GameStop is charging only 2% to complete that same transaction on Layer 2, with 1% going to Loopring and 1% to GameStop.

The development

Cyberhorsey, GameStop’s lead engineer for the GameStop Wallet, states that the app has been his baby and he’s so glad everyone loves the beautiful UX that simplifies “complicated L2 shit,” into several easy-to-follow buttons.

Tweet from Cyberhorsey on May 23rd, 2022.

GameStop had teased their Google Chrome wallet and their yet to be released iOS wallet on May 5th, when the wallet’s landing page first went live.

Prior to the wallet extension’s launch, GameStop tweeted from their new Twitter account GameStopNFT to educate their audience on the purpose of wallets, stating that “wallets are where your crypto journey begins.”

GameStop NFT’s tweet from May 22, 2022.

On Monday morning, the official GameStop Twitter account promoted the new wallet alongside GameStop’s new Twitter handle, and the announcement was met with positive responses from the GameStop community.

In preparation of the wallet’s launch, GameStop had released a new blockchain support site that contains educational articles about web3 and a contact form to open an official support ticket for questions about the new wallet.

Screenshot from support.blockchain.gamestop.com

The site answers questions such as, “What is a browser extension wallet,” and “How do I activate Layer 2?” written by GameStop Blockchain Community Manager Ryan Kagy.

GameStop also notifies users to beware of impostor profiles and websites setup to mimic GameStop Support. GameStop will only ever offer support via their Zendesk Help Center and will NEVER ask users for their Secret Phrase.

I’m new here. What is Layer 2?

If you’re wondering what all the talk about L1 and L2 is about, here’s a simple metaphor that avoids technical terms such as “zero knowledge roll ups.”

Imagine that layer 1 blockchains, such as Ethereum, are digital cities. Imagine that blockchain transactions are persons sitting in cars trying to go somewhere in the Ethereum city. Cars reaching their destination represent verified transactions.

If there’s lots of cars, congestion and traffic starts building up, so the city starts increasing gas prices to discourage people from driving. During high congestion, buying a $50 Ethereum NFT on layer 1 might cost you an additional $200 in gas fees.

Then, imagine an Ethereum layer 2 scaling solution, such as Loopring, building an elevated bullet train above the city. This elevated bullet train represents layer 2 scaling solutions which are built atop layer 1 blockchains. Individuals who were previously stuck in traffic on layer 1 can now choose to ride the bullet train that can fit thousands of people instead.

Loopring is the bullet train above the blockchain city

Since the train is fast and experiences no traffic, they all reach their destinations faster. Plus, multiple people can fit inside the bullet train, so everyone shares the costs of the ride resulting in each individual paying significantly less in fees.

There’s also the added benefit that the more people who use layer 2 scaling solutions, the less congested layer 1 becomes as well.

What now?

GameStop investors should consider downloading the chrome extension and trying it themselves. As the platform is still in beta, users are encouraged to only put in funds they are comfortable with, and consider using a ledger.

With only 69 days left for GameStop keep their promise of launching their highly anticipated NFT Marketplace by the end of Q2 on July 31, investors shouldn’t have to wait long to see the result of a year of building the most innovative offering the company has ever released.

joecomotion wrote this piece for GMEdd.com. Toast edited and contributed.


GameStop has filed their Preliminary Schedule 14A ahead of the 2022 Annual Shareholder Meeting where investors are anticipating to vote on a stock split.

The video game retailer in the midst of a technology-centric transformation has evolved since last year, when a Schedule 14A was released under former CEO George Sherman’s regime.

GameStop’s filed Schedule 14A today reveals the company’s preliminary proxy statement providing notification matters to be brought to a vote for the 2022 Annual Shareholder Meeting.

The letter from Furlong

Per tradition, the filing starts with a letter from the CEO, now recently instated Matt Furlong from Amazon.

Matt Furlong’s Letter to Stockholders

“We believe the investments made in recent quarters represent the foundation of value creation that will become evident quarters and years down the road. In 2022, we will continue to make pragmatic investments to modernize our infrastructure, expand our addressable market and grow our customer base. Leadership will not compromise when it comes to being maniacally focused on the long-term.” — Matt Furlong

Furlong’s letter expresses GameStop is “manically focused on the long-term,” and that GameStop’s new management team consists of hundreds of individuals with technology backgrounds.

As per Cohen’s guidance in the November 2020 Letter to the board, Furlong states GameStop has refocused around a singular mission to delight customers. 

The Agenda

While the date of the meeting remains unannounced, Shareholders can anticipate to be asked of several items on the agenda, including:

1. Elect six directors, each to serve as a member of the Board of Directors until the next annual meeting of stockholders and until such director’s successor is elected and qualified;

2. Adopt and approve the GameStop Corp. 2022 Incentive Plan;

3. Provide an advisory, non-binding vote on the compensation of our named executive officers;

4. Ratify the Audit Committee’s appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending January 28, 2023;

5. Approve an amendment to the Third Amended and Restated Certificate of Incorporation to increase the number of authorized shares of the Class A Common Stock (the “common stock”) to 1,000,000,000; 

6. Transact such other business, if any, as may properly come before the annual meeting and at any postponement or adjournment of the annual meeting.

Only stockholders of record as of the close of business on April 8, 2022 are entitled to vote at the annual meeting and any postponement or adjournment thereof. 

The meeting

Unlike last year where hundreds of retail investors trekked to the Dallas-Fort Worth Area to attend GameStop’s 2021 annual meeting, the upcoming meeting will be held virtually this June. 

GameStop also invites stockholders and other interested parties to communicate directly and confidentially with the full Board, the Chair of the Board or the non-management directors as a group by writing to GameStop Corp., 625 Westport Parkway, Grapevine, Texas 76051, Attn: Secretary.  GameStop states that the secretary will forward such communications to the intended recipient and will retain copies for corporate records.

Breaking tradition, 30 minutes prior to, and during the Annual Meeting, investors will be able to submit questions by accessing the meeting site and following the directions.

The company will hold a Q&A session during the annual meeting, during which the company intends to answer questions that are pertinent to the items being brought before the stockholder vote at the annual meeting, as time permits and in accordance with the Rules of Conduct for the annual meeting.

Why split the stock?

Despite other items on the agenda, investors are primarily interested in the stock split, how it will pan out, and what the purpose is.

GameStop states that the primary purpose of increasing the number of authorized shares of common stock is to offer investors more flexibility in how they manage their ownership.

“The trading price of our common stock has risen significantly over the past couple of years. Our investors have expressed a high level of interest in our common stock. Feedback from our investors indicates that a higher stock price can limit those who desire to invest in our common stock. We anticipate that an increase in the number of outstanding shares resulting from a potential Stock Split will reset the market price of our common stock in a range that would give our investors more flexibility in how they manage their ownership of our common stock and make our common stock more accessible for anyone who wants to invest in our Company.”

GameStop’s Schedule 14-A Proposal 5

Along with the split, GameStop is interested in the authorization to issue additional shares for future acquisitions, capital-raising, or financing transactions. GameStop states they do not currently have any other plans, agreements, commitments or understandings with respect to the issuance of the additional shares, nor do they currently have any plans, arrangements, commitments or understandings with respect to the issuance of any shares of preferred stock.

FOR MORE, READ GAMESTOP’S April 11, 2022 14-a FILING.

JOIN GMEDD.COM’S OFFICIAL DISCORD SERVER TO CHAT ABOUT THIS ARTICLE, GAMESTOP’S TRANSFORMATION, AND MORE.
CONSIDER DONATING TO SUPPORT RESEARCH AND BUY OUR CONTRIBUTORS A COFFEE

Source: GameStop Schedule 14-A


Editorial Note: On April 21st, 2022, GameStop announced the annual meeting will be held at 10:00 AM CT on June 2nd, 2022.

GameStop has risen 15% after-hours upon an official announcement of their intentions to request a stock split.

Revealed via Form 8-K Filing, GameStop is planning on asking for shareholder approval at the upcoming 2022 Annual Meeting on an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000.

If granted, GameStop will file an amendment to the Company’s Charter Amendment in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs.

So what?

For nearly a year, retail investors have speculated if GameStop would ever engage in a stock split. Even GMEdd.com published tongue-in-cheek conspiracy when Chairman Ryan Cohen shared a photo of himself with split chopsticks under his nose.

Right now, GameStop has 76.3M outstanding shares, with existing authorization up to 300,000,000 shares. The company is asking for approval to raise that authorized cap to 1,000,000,000, indicating an intention that they are likely seeking between a 4:1 to 13:1 split.

GameStop’s Form 8-k Filing from March 31st

GameStop’s proposed stock split plan would be completed through a stock dividend, which awards existing shareholders with new shares.

Unlike a typical stock split where already held shares are divided, in a stock dividend additional shares are allotted to existing shareholders.

anything else?

GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan to support future compensatory equity issuances. 

If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan, and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. 

GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval.

FOR MORE, READ GAMESTOP’S March 31, 2022 8-K FILING.

Included in the release of today’s GameStop Q4 2021 financial results was the reveal of GameStop’s intended launch deadline for the incoming GameStop NFT Marketplace.

GMEdd.com first unearthed the existence of GameStop’s Official NFT project in May 2021 upon discovering a website that didn’t detail much besides a potential slogan for the project, and ever since then investors have speculated what GameStop NFT entails.

Prior to this, digital breadcrumbs had led us to that same point, detailing how Loopring’s technology could power a bridge of traditional e-commerce and blockchain and engineer the revolution of gaming.

With Immutable revealed as a technology partner in the potentially groundbreaking gaming marketplace in February, progress has undoubtedly been expedited.

GameStop has announced an expected launch date of the NFT Marketplace by close of Q2 2022 (July 31, 2022).

Business strategy

GameStop reported they are on a strategic path to fully leverage the company’s unique position and brand in gaming. The strategic plan is designed to optimize the core business while at the same time, pursuing strategic initiatives to transform GameStop for the future by expanding the company’s addressable market and product offerings to drive growth in the gaming and entertainment industries.

GameStop states their focus is on transforming into a customer-obsessed technology company to delight gamers, and is actively focused on:

Establishing ecommerce excellence.

GameStop aims to be the leading destination for games and entertainment across all channels and will scale up ecommerce operations to make the most convenient solution for customers. This includes app & site redesigns, improvements in fulfillment and delivery times, better product availability across all channels, and a further improved customer service experience.

Expanding selection to deliver a market-leading offering in gaming & entertainment.

Continue investing in expanding product offering to relevant categories for our customers, including becoming a leader in PC gaming, virtual reality, and other gaming products.

Leveraging existing strengths and assets.

Grow GameStop’s presence in the gaming community and increase market share through enhancing the value of the loyalty program and Game Informer assets while also expanding the scope of the buy, sell, and trade business to support expanded offerings.

Investing in new growth opportunities.

As the company scales and expands core offerings, GameStop will simultaneously invest in additional growth, including blockchain, digital assets (including non-fungible tokens, Web 3.0 technology, and new destination formats for retail stores. 

GameStop states they believe these future transformation efforts are an important aspect of the company’s continued business to enable long-term value creation for company shareholders.

Rollout Strategy

With Ryan Cohen insistent on not talking a big game, little remains known about GameStop’s NFT Marketplace rollout strategy.

“We know some people want us to lay out a whole detailed plan today, but that’s not gonna happen.You won’t find us talking a big game, making a bunch of lofty promises, or telegraphing our strategy to the competition. That’s the philosophy we adopted at Chewy.” — Ryan Cohen in June 2021

On March 4th, Robbie Ferguson, the Co Founder and President of Immutable, shared the first phase of the intended rollout on Reddit.

Robbie shared this graphic on Reddit.

Robbie also stated that Immutable is going to be dropping content over the next few weeks diving into what integration will look like, details on Immutable and GameStop’s vision for the space, and answering questions fans and investors and might have.

FOR MORE, READ GAMESTOP’S March 17, 2022 10-K FILING.

GameStop Corp. today released financial results on the company’s Investor Relations platform for the fourth quarter ended January 29th, 2022.

The gaming retailer in the midst of transformation will also host an investor conference call at 5:00 pm ET to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

The Company also announced it intends to launch its marketplace for non-fungible tokens (“NFTs”) by the end of the second quarter of fiscal year 2022.

The Company’s Form 10-K and supplemental information can be found at http://investor.GameStop.com

Fourth QUARTER OVERVIEW

Generated net sales of $2.254 billion for the quarter, compared to $2.122 billion in the fourth quarter of 2020 and $2.194 billion in the fourth quarter of 2019.

Established new and expanded brand relationships, including with PC gaming companies such as Alienware, Corsair and Lenovo, that contributed to sales growth in the quarter.

Grew PowerUp Rewards Pro members by 32% on a year-over-year basis, taking total membership to approximately 5.8 million.

Entered into a partnership with Immutable X that is intended to support the development of GameStop’s NFT marketplace and provide the Company with up to $150 million in IMX tokens upon achievement of certain milestones.

Launched a redesigned app, which includes an enhanced user interface, improved scalability for a larger product catalog and more functionality to support exclusive offers and promotions.

Hired dozens of additional individuals with experience in areas such as blockchain gaming, ecommerce and technology, product refurbishment and operations.

full year overview

Generated net sales of $6.011 billion for the fiscal year, compared to $5.090 billion for fiscal year 2020.

Expanded the product catalog to include a broader set of consumer electronics, PC gaming equipment and refurbished hardware.

Made significant and long-term investments in the Company’s fulfillment network, systems and teams.

Established new offices in Seattle, Washington and Boston, Massachusetts, which are technology hubs with established talent markets.

Raised more than $1.67 billion in capital and eliminated all of the Company’s long-term debt, other than a $44.6 million low-interest, unsecured term loan associated with the French government’s response to COVID-19.

Ended the fiscal year with $1.271 billion in cash and cash equivalents and $915 million in inventory, compared to $635 million in cash and $602.5 million in inventory at the end of fiscal year 2020. Increased investments in inventory reflect the Company’s focus on meeting heightened demand and mitigating supply chain headwinds.

WEBCAST AND CONFERENCE CALL INFORMATION

The webcast with management is scheduled for March 17, 2022, at 5:00 p.m. ET to discuss the Company’s fourth quarter activities and financial results. This call, along with supplemental information, can also be accessed at GameStop’s Investor Relations. The phone number for the call is 877-451-6152 and the confirmation code is 13725350. This webcast will be archived for two months on GameStop’s investor relations website.

Source: GameStop Newsroom, Form 10-k

GameStop Corp., today announced that it will report fourth quarter and full year fiscal 2021 results after the market closes on Thursday, March 17, 2022.

The gaming retailer in the midst of transformation will host an investor conference call at 5:00 pm ET on the same day to review the company’s financial results. This call and any supplemental information can be accessed at GameStop’s investor relations home page.

WHERE TO TUNE IN

The phone number for the investor conference call is 877-451-6152 and the confirmation code is 13725350. The conference call will be archived for two months on GameStop’s corporate website.

GMEdd.com had hosted livestreams for prior conference calls, as viewership often surpasses what GameStop’s systems can handle.

For Q1 and Q2 2021 Earnings, GameStop streamed the report on their official YouTube channel, which remain the company’s most viewed videos; a testament to the devotion of the company’s retail investor base.

We advise all GameStop investors follow @GMEdd on Twitter for updates.

THE SIGNIFICANCE

This will mark the third earnings call since the departure of former Chief Executive Officer George Sherman and the board overhaul.

While Ryan Cohen announced at the 2021 Annual Shareholder’s Meeting that the company does not plan to talk a big game, investors will anticipate some direction or announcements regarding GameStop NFT from the aspiring technology company under new leadership.

The Cohen-instated CEO Matt Furlong, a former Amazon executive, will likely speak during the majority of the conference call, if tradition continues.