Leading game retailer GameStop (NYSE: GME) is teaming up with The Telos Foundation, the organization behind the layer 1 blockchain Telos, to expand its Web3 gaming offerings.
The deal will link Web3 games utilizing Telos' decentralized blockchain infrastructure to GameStop’s upcoming Web3 game launchpad Playr, providing new opportunities for mainstream gaming distribution.
AJ Dinger, head of business development at the Telos Foundation, said in a press release that the collaboration will help onboard new users to the Web3 gaming ecosystem using Telos’ robust network.
"We believe this collaboration will be a meaningful driver of new users into the Web3 space,” said Dinger. “By combining GameStop Playr with Web3 games utilizing Telos' high-performance blockchain infrastructure, we can break down many of the barriers currently deterring Web2 players from embracing Web3."
Telos’ native token TLOS jumped 10% on the news before receding.
GameStop has steadily been moving away from its brick and mortar strategy to focus on a digital expansion that includes Web3 gaming. In February 2022, it announced a partnership with layer 1 blockchain Immutable X to build a non-fungible token (NFT) marketplace for trading in-game assets. The marketplace, which has been operating as a public beta since July, officially launced to the public in October 2022. The retailer also released its self-custodial crypto and NFT wallet in May 2022.