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.


GameStop Chairman Ryan Cohen says that Bed Bath & Beyond’s strategy is failing to stem sustained market losses.

In a turn of events nobody could have anticipated, Cara Lombardo of the Wall Street Journal has reported that GameStop Chairman Ryan Cohen has purchased a 9.8% stake in Bed Bath and Beyond through RC Ventures.

The founder of Chewy is reportedly pushing the housewares retailer to streamline its strategy and explore strategic alternatives.

The Wall Street Journal headline on March 6th 2021.

The Turnaround

The chain has a turnaround plan that includes reducing the number of products in its stores and launching new private-label brands. But this plan left it vulnerable to supply-chain issues roiling the retail industry and caused it to cede more sales to rivals such as Amazon.com Inc. and Target Corp. 

Mr. Cohen says in the letter that Bed Bath & Beyond’s strategy is failing to stem sustained market share losses, noting that core sales dropped 14% from a year ago in the most recent quarter.

The Guidance

Cohen urges the company to take two main steps: narrow the focus of its turnaround plan and maintain the right inventory mix to meet demand, and explore a separation of the Buybuy Baby chain or a sale of the entire company.

The Chewy co-founder writes that given Buybuy Baby’s growth trajectory, it could be worth several billion dollars. He also writes that the entire company could be better off in the hands of a private-equity firm.

Cohen adds Bed Bath and Beyond should better align leadership compensation with results.

Mr. Cohen wraps up the letter by stating that given his focus on GameStop, he isn’t in a position to become a Bed Bath & Beyond director himself, but he doesn’t rule out his firm nominating directors if necessary.

“Given that I am the Chairman of GameStop and overseeing a systematic transformation, I am not in a position to join Bed Bath’s Board and personally drive the initiatives outlined in this letter. This does not mean, however, that RC Ventures will not seek to hold the Board and management accountable if necessary.” — Ryan Cohen

The window to nominate directors to the company’s board is open now and closes mid-March.

Who’s going to be the host for all these files?

It’s no secret that GameStop has been building a premium NFT marketplace, with job postings alluding to blockchain developments at the company dating back to April of 2021.

After a year of cat and mouse chases searching for clues as to who GameStop is working with, the aspiring technology company’s latest known technology vendor has been uncovered in what could be seen as an intentional Freudian slip. 

The Pinata Broke

Pinata’s very own Head of Product, Justin Hunter, confirmed that Pinata is providing backend distributed storage for the emerging retailer turned-NFT Powerhouse during a speaking event with Texas Blockchain.

The Head of Product at Pinata commented that the shadow vendor-client relationship hadn’t been intended for public scrutiny, but that Twitter had spread the message after a user dug into GameStop source code.

“[GameStop] is using us both for the storage of the assets and then serving the content back.” — Justin Hunter

Before this spill, investors were already clued into the relationship between GameStop and Pinata.

The DNS records of ipfs.nft.gamestop.com

GameStop’s own DNS records have long referenced gamestop.mypinata.cloud, revealing that the gaming retailer has been using their hosting services for some time now.

So what is Pinata?

Pinata claims they’re “the home for NFT media”, and trusted by well-known non-fungible pioneers such as Rarible, Autograph, Protocol Labs, and sorare.

Screenshot of pinata.cloud’s homepage as of March 5th 2021.

Pinata is a cloud based InterPlanetary File System (IPFS) service provider offering users the ability to host their NFT content on the decentralized Web 3.0. 

The company is currently a leading service provider for dedicated public IPFS gateways, which allows creators to upload their NFT content onto the peer-to-peer distributed file system where it will no longer need to rely on a centralized service provider such as Amazon S3, Google Cloud, and Microsoft Azure, who currently lead the Web 2.0 services sector.

A visualization of HTTP vs IPFS

Due to the decentralized nature of blockchain technologies, in order to have true ownership of NFT content users cannot rely on a centralized server. 

In the centralized world of Web 2.0, users must trust the data provider as well as the data. Contrary to this, in Web 3.0 users only need to trust the data itself thanks to the decentralized nature of IPFS and its use of cryptographic hashing. 

By using Pinata and their IPFS services, GameStop can securely host NFT content on behalf of its users in a decentralized manner which enables players, creators, and collectors to have complete ownership of their content. 

IPFS provides both reliability and resiliency to attacks. When a traditional content provider goes offline, whether due to maintenance, software bugs, a cyber attack, or even censorship, users are left unable to access their data, games, media, or other files. With IPFS, users can rely on the many peers of the system to continue hosting content while some nodes may be offline. 

To put it simply, GameStop powers the players, creators, and collectors; Pinata powers the underlying NFTs. 

Pinata’s Roots

Established in 2018, Pinata offers professional services for NFT file management, allowing users to upload files of any type and size to the peer-to-peer distributed file system known as IPFS.

“Our mission is to help creators provide an experience worth paying for.” – Pinata

Pinata by the numbers, according to pinata.cloud/about

Pinata works via storing content, such as games, media, or files, within a hash of an NFT’s verified URL. This verification takes place with an access token that is only generated by the NFT owner. 

Think of a DNA strand: it’s tiny and works with others to make up a whole asset, but if destroyed, the next strand can reproduce the entire product! 

Pinata’s distributed storage creates DNA strands of digital assets, enhancing security and decentralized goodness. 

Pinata’s Submarining, explained.

One of Pinata’s distinct features is Submarining, which allows users to make an IPFS file they upload private from the public IPFS network. This capability allows people to attach data to an NFT and control who can view it based on ownership of the NFT.

It’s a Party

In essence, Pinata allows applications, end users, and creators to interact with the Blockchain to create trustless, decentralized verification between themselves and others.

GameStop using Pinata’s offerings to host and serve their NFTs indicates that the video game retailer is committed to the future of digital, pinning themselves at the forefront of the internet’s transition to Web 3.0.

Vice and kmsully contributed to this piece. Toast edited and contributed.


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Sources: IPFS Draft 3, What is IPFS, Pinata FAQ, Pinata Features, The Block Crypto

GameStop has found another partner for their venture into the future, and this one is from the land down under.

GameStop has entered into a Protocol Services and License Agreement with Immutable X Pty Limited, also known as Immutable X, pursuant to which Immutable X will become a technology partner and platform for GameStop’s non-fungible token (“NFT”) marketplace. 

GameStop has also entered into a Grant Agreement with Digital Worlds NFTs Ltd. (“Digital Worlds”), which encourages the development of projects using technology of Immutable X by issuing grants of IMX tokens.

The Grant Agreement establishes a commitment to provide up to $100 million in grants of IMX tokens to support creators of NFT content and technology, and also provides for the grant of up to $150 million in IMX tokens to the Company upon the achievement of certain milestones. 

additional obligations

Immutable will commit a reasonable level of design & scoping support to Gamestop, including access to Immutable CTO, the company’s Product team, and Integration Engineers to help with integration architecture and scoping.

Immutable will co-design the entire solution with the GameStop team. Immutable will introduce a third-party integrator to help with the integration between GameStop and Immutable X. Any engagement by that integrator will be at GameStop’s cost.

Marketing and other commitments

GameStop will use Immutable X as their first layer-2 NFT integration for trading and minting, other than Loopring;

GameStop will not integrate any blockchain protocol, other than Ethereum Layer 1 and Loopring into their NFT marketplace without first having integrated Immutable;

GameStop will commit & dedicate resources to co-pitching to gaming studios as reasonably requested by Immutable during the Term, including the Vice President of Business Development – Blockchain and the Vice President of Corporate Strategy for the first four months after contract execution, which can be extended and expanded upon mutual agreement by both parties.

GameStop will use reasonable commercial efforts to support marketing efforts for the NFT marketplace, and will feature Immutable X protocol displayed prominently on the Gamestop NFT marketplace using mutually agreed upon methods (e.g. a site strip).

GameStop will prominently feature on the Gamestop NFT Marketplace the additional grants Digital Worlds is committing to make in connection with Gamestop NFT Marketplace for such time as the grants are being offered using mutually agreed upon methods (e.g. badging on the home page that re-directs to a dedicated landing page).

GameStop will dedicate resources to support engineering efforts for the NFT marketplace and will cover the costs of any third party development needed for the launch and upkeep of the project.

GameStop will announce Immutable partnership/GameStop NFT marketplace in a shareholder company filing (either 10-K or 10-Q) if approved by GameStop investor relations team, legal team, and the Board of Directors.

GameStop will make reasonable efforts to include Immutable in a quarterly earnings update if approved by the GameStop investor relations team, legal team, and the Board of Directors.

GameStop will commit to quarterly meetings with applicable GameStop team members to review the program & strategy for future.

GameStop will provide two dedicated Immutable X press releases:

one after contract execution which will be focused on the grant; and

the other at the integration launch, which will be focused on the integration.

GameStop will use reasonable commercial efforts to refer Immutable X to game studios, and to support pitches where appropriate. GameStop will commit to twice a week meeting and pipeline / lead review for the first 4 months, to co-ordinate co-pitching to those leads, which may be extended if mutually agreed to.

feature/promotion placement

GameStop will have a dedicated landing page linked from the home page using a prominent badging image, which will be a page to promote the grants, and will include a sign-up form.

GameStop and Immutable X will leverage the Immutable X grants pool to incentivize gaming studios, developers and artists to create pre-sale and/or special in-game items promotion using Immutable X minting through the GameStop NFT Marketplace, with any such promotion being as agreed between the parties.

GameStop will provide a site stripe mid-page for grant promotion, for the duration between signing and integration of the grant application framework, that will include a promotional banner at the top indicating that Immutable X will be available soon.

GameStop will provide placement and marketing text on Immutable X minting option and will provide order options dynamically by usage.

What is Immutable?

Immutable X works on top of the Ethereum blockchain and is designed specifically for token-driven video games and NFT-based projects. It inherits the security of the Ethereum mainnet, but it can handle a much larger volume of transactions at much lower costs, with a significantly smaller environmental footprint in the process.

Immutable prides themselves in the fact that all NFTs that are created or traded on Immutable X are 100% carbon neutral.‍

GameStop has also partnered with Trace and Cool Effect to “offset its remaining carbon footprint,” in what could be a bid to avoid the backlash that’s become commonplace with mainstream NFT involvement, per Eli Tan of CoinDesk.

Similar to the layer-2 technology at Loopring, Immutable X takes upwards of hundreds of thousands of transactions handled on its own blockchain and then rolls them up and commits them to Ethereum’s mainnet. Immutable X has not developed their own zero-knowledge proof technology, and instead uses StarkWare’s.

“The GameStop mission is literally power to the players, and that is exactly what we’re trying to do here,” Robbie Ferguson, co-founder of Immutable, told CoinDesk in an interview. “The $100 million is a minimum of what we’re doing.”

In a tweet at 7:30 AM EST, Ferguson shares the expression, WAGMI, a meme in the crypto-community meaning “we’re all gonna make it,” alongside a video announcing the partnership.

 

The $100M Fund

Ferguson told Decrypt that the $100M fund will provide grants of Immutable X’s IMX token to studios that build on the platform and use GameStop’s marketplace—to “attract the best developers and studios and accelerate mass adoption,” said Ferguson.

“Immutable and GameStop are focused on incentivizing long-term gaming projects, where AAA or high-quality studios are trying to build games that are enjoyable to both play and earn,” he explained. “The future of gaming is one where digital property rights are inherent—but the games still have to be fun.”

GameStop’s NFT landing page has been updated with a new form for builders and creators to apply for grant consideration.

The wider NFT market generated $23 billion in trading volume last year, per data from DappRadar, and is already yielding record-breaking sales in 2022.

Immutable’s Robbie Ferguson will be live on the Bankless HQ YouTube channel at 4:30 PM EST to explore GameStop’s Partnership with the Australian-based blockchain company.

For more, read GameStop’s February 3rd, 2022 8-K Filing.

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Sources: GameStop 8-K, Coindesk, Robbie Ferguson on Twitter, Decrypt

Rod Alzmann and Joe Fonicello of GMEdd․com collaborated with acclaimed director Jonah Tulis to share the story of the foundation of GMEdd.com alongside the stock market frenzy surrounding GameStop shares.

In January 2021, video game retailer GameStop had been the top story on every news network in the world. GameStop’s shares had risen over 2,500% amidst a wild flurry of volatility, netting enormous gains to investors and costing short sellers billions in the process.

But this wasn’t the whole story. The frenzy was the result of a battle that has been brewing for years; a chronicle of a band of contrarians who resisted conventional wisdom to bet on their own research, on a business that Wall Street had given up on.

Tulis states, “I talked to anyone and everyone and soon discovered there was a group of people who had been in on GameStop since early-2019, when the stock was in the low single digits. Not only that, these people all met online and sort of became a makeshift investors club.” 

The feature is told like a “campfire story,” by the people who lived it, in the moment, with no narrators or pundits giving a basic overview. 

GAMESTOP: RISE OF THE PLAYERS will feature familiar faces to dedicated retail investors in the stock, including but not limited to, Justin Dopierala, Farris Husseini, Rod Alzmann, and Joe Fonicello.

By day, Rod Alzmann worked as a corporate strategist for a Fortune 500 transportation & logistics company; and by night he served as the unofficial “Chief Strategist for a contrarian crew of GameStop investors,” per film producer Blake Harris. After years of pulling from a seemingly endless bag of unorthodox ideas, Alzmann would eventually become the “face” of GameStop’s army of retail investors, as a staple on Bloomberg and other financial programming.

Joe Fonicello attended the University of Connecticut and with an uncertain future awaiting him—made even more uncertain when COVID hits—Fonicello decides to travel the country in a Sprinter van and finish his senior year remotely. Along the way, he discovers the “GameStop thesis” and his life changes forever, as he begins digging deep into the retailer and spreading the word via social media, joining forces with Rod Alzmann to turn GMEdd.com into the ultimate one-stop-shop for crowd-sourced due diligence on Wall Street’s anti-darling.

The documentary will also feature Dmitriy Kozin, Farris Husseini, Jenn Kruza, Tom Barton, Jeff Tarzia, Abbe Minor, Justin Dopierala, Rigoberto Alcaraz, and infamous short seller Andrew Left.

GAMESTOP: RISE OF THE PLAYERS arrives in theatres on January 28th, 2022. For tickets and availability, visit Fandago.com.

While GameStop’s evolution into a digital-first technology company is only beginning, the prologue is worth understanding, and we believe the documentary works to paint a truthful and entertaining picture.

As a disclaimer, Rod Alzmann and Joe Fonicello of GMEdd.com volunteered their time to be interviewed for this project, to ensure the factual story was told and represented fairly. Thank you to all of our readers for supporting us.

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Following the WSJ Exclusive that revealed to the public GameStop’s plans to expand into the NFT market, Barron’s has reported GameStop considered acquiring Loopring.

GMEdd.com first published source code from Loopring’s GitHub repository in October that confirmed the highly-speculated NFT Marketplace partnership amongst the ambitious pioneers was in development.

Prior to this, digital breadcrumbs had led us to that same point, detailing how Loopring has the technology that GameStop would require to bridge traditional e-commerce and blockchain and engineer the revolution of gaming.

the second layer

Connor Smith of Barron’s has corroborated The Wall Street Journal’s claims that GameStop is moving on blockchain partnerships, revealing that GameStop’s crypto plans have been in the works for months, the source told Barron’s, adding that the company has retained top crypto advisors to support its efforts.

When Barron’s questioned the source familiar with matters at GameStop about the Loopring speculation, the source stated that GameStop explored an acquisition of Loopring, but ultimately withdrew from talks amid logistical concerns related to Loopring’s operations in China.

Connor Smith’s tweet on January 6, 2022

Reddit users for months have speculated on whether GameStop had plans to launch something with decentralized financial company Loopring, which backs the LRC token. The person confirmed GameStop explored an acquisition, but said the retailer ultimately withdrew from talks amid logistical concerns related to Loopring’s operations in China.

Barron’s reports that a Loopring representative was not immediately available for comment, although GMEdd.com notes that back in November, Loopring CEO Daniel Wang stated he ‘could not comment on that’ anyway when asked by a reporter about the decentralized finance company’s rumored deal with GameStop.

GameStop withdrawing from acquiring Loopring Technology Limited does not prevent them from utilizing Loopring’s zkRollup Layer2 protocol to power their NFT Marketplace.

Read the full article, ‘GameStop stock surges on nft and crypto plans’ at barron’s

Source: Connor Smith at Barron’s

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