Blockchain technology is the key to Square Enix’s growth, financial results show

Blockchain technology is apparently key to Square Enix’s growth strategy.

The company has released its latest financials, with once again a drop in overall sales supported by the success of MMORPG Final Fantasy 14.

Still, the emergence of blockchain technology is particularly eye-opening.

As part of the company’s medium-term business strategy, it aims to take on new domains, as well as strengthen the IP ecosystem and optimize the business structure for a covid world.

These new domains primarily focus on promoting blockchain games and entertainment.

Last week, the company revealed its Symbiogenesis project with its first sale of NFT collectibles based on a new IP, where “the story unfolds based on players’ strategic moves”.

Prior to this, the company joined the Oasys blockchain and announced its plans for Final Fantasy NFT.

Additional plans include Shi-San-Sei Million Arthur NFTs for 10th anniversary, and investments in FinTech platform Zebedee built on Bitcoin, medieval strategy game Blocklords, NFT trading card game Cross The Ages, blockchain game developer Animoca Brands and decentralized metaverse The Sandbox.

It comes on top of cloud gaming services Blacknut and Ubitus. The latter worked with Capcom on the cloud version of Resident Evil Village for Switch.

This focus on blockchain and cloud technologies follows comments from Square Enix president Yosuke Matsuda at the beginning of the year, in which he stated that these would become a “major trend” in gaming.

There is no mention of Final Fantasy 16 in its medium-term business strategy (release is set for summer 2023, which would be in the next financial year).

For the first half of the current financial year, net sales for Square Enix fell by 3.3 percent, while operating income fell by 10.7 percent year-on-year.

Sales of the games have declined, despite the release of a number of new titles such as Live A Live, PowerWash Simulator, Valkyrie Elysium and Star Ocean: The Divine Force.

Crisis Core Final Fantasy 7 Reunion and The Prophet are still set for release this fiscal year.

Net sales of MMO games have once again increased, with increasing paying subscribers for Final Fantasy 14. This means that almost a quarter of net sales from digital entertainment now come from MMO games.

The report mentions that no expansion packs for Final Fantasy 14 or Dragon Quest 10 will be released for the rest of this fiscal year.