GameStop Lost $381 Million Last Year, Will Look To NFTs And Crypto For Success In The Future
Retailer GameStop has announced earnings, and the past year was a challenging one for the company. The company posted an overall loss of $381 million for fiscal year 2021. GameStop CEO Matt Furlong said in an briefing that there were multiple factors that negatively impacted GameStop's results in the past year, but the company remains steadfast in its commitment to taking a hit now if it leads to greater results down the road.
«The combination of supply chain issues and the omicron variant had a sizable impact on this past year's holiday season,» Furlong said. «We made a conscious decision to lean in and absorb higher costs in order to meet customer demand. We felt, and continue to feel, that investing in our customers and rebuilding our brand loyalty right now is in the company's best interest over the long term.»
Furlong also reiterated during the call that GameStop is making moves to become a «technology» company as opposed to strictly a video game retailer. Furlong said GameStop aims to become a «customer-obsessed technology company; one that has wider offerings, more competitive pricing, faster shopping, stronger customer service, and an easier shopping experience.»
Although GameStop posted a massive loss for the past fiscal year, Furlong mentioned that GameStop made several changes to help improve profitability. One such method was by cutting ties with external consultants, which were costing the company «millions» of dollars per year, Furlong said without naming these consultants.
As for how GameStop plans to turn things around, Furlong said GameStop will look to NFTs and crypto. «We see significant long-term potential in the more than $40 billion market for NFTs,» Furlong said. «We are going to continue taking
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