Game publisher Square Enix (NASDAQ: SQNXF) plans to increase its investment in blockchain games in 2023, according to a New Year’s letter from the company’s president.
Square Enix president Yosuke Matsuda wrote in his annual letter to shareholders that blockchain-backed game development will be central to the company in the new year. It summarizes the challenges and achievements
Matsuda attributes the unfavorable macroeconomic sentiment to the rapid decline in cryptocurrency prices, while semiconductor shortages are hurting hardware supplies to Square Enix. We ran into trouble and were forced to sell our three studios and associated IP to Embracer Group in the summer of 2022.
“With regard to new business areas, we have identified three priority investment areas in our medium-term management plan. Among them, we are most focused on blockchain entertainment, where we have been actively investing and developing businesses,” says Mr. Matsuda. is writing
The company’s president confirmed that it has multiple blockchain-based games in development and will launch in the coming months. Matsuda confirmed that Square Enix is taking a proactive stance in looking for investors and is continuing to invest in the game industry.
Matsuda said the use of non-fungible tokens (NFTs) in games has been undermined by an influx of speculators, but falling prices are providing opportunities for creators to explore innovative use cases. . He argued that attempts to centralize blockchain-based games go against its spirit. Instead, “blockchain games should operate on an autonomous decentralized model.”
Not Square Enix’s First Rodeo
Square Enix has clenched its teeth in this space by releasing the highly anticipated Final Fantasy collection on the engine, and blockchain-based games are nothing new. A game publisher has gone deep into the ecosystem by becoming a validator for his node on the Oasys blockchain.
The foray into DLT didn’t sit well with critics, with a cross-section of critics calling the move “self-sabotage”. Undeterred by criticism, Square Enix has partnered with mobile game developer Gumi Games to create an NFT-based game title.
Matsuda’s letter said Square Enix is aware that the government is about to issue new regulations to govern the burgeoning industry, and his company has taken necessary steps to prepare for its impact. He pointed out that
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