Final Fantasy creator Square Enix confirms major investment in blockchain games
Game publisher Square Enix (NASDAQ: SQNXF ) is set 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 regular letter to shareholders that blockchain-supported game development will be the centerpiece of the company in the new year. The letter summarized the challenges and achievements the company saw in 2022.
Matsuda attributed the unfavorable macroeconomic sentiments to the rapid decline in virtual currency prices, while a shortage of semiconductors adversely affected Square Enix’s hardware supply. Square Enix struggled financially and was forced to sell three of its studios and their associated IP to the Embracer Group in the summer of 2022.
“In terms of new business domains, we have named three focus investment fields under our medium-term business plan. Among these, we are most focused on blockchain entertainment, to which we have devoted aggressive investment and business development,” Matsuda wrote.
The company’s president confirmed that it has several blockchain-based games in development, which will be launched in the coming months. Matsuda confirmed that Square Enix is taking an active stance in looking for investors as they continue to increase their efforts for the gaming industry.
Matsuda argued that the use of non-fungible tokens (NFTs) in games was marred by speculators flooding the space, but the price drop gives creators a chance to explore innovative use cases. He argued that attempts to centralize blockchain-based gaming contradict its ethos; instead, “blockchain games must operate based on a self-sustaining decentralized model.”
Not Square Enix’s first rodeo
Square Enix is not new to blockchain-based gaming, having cut its teeth in the sector with the release of its long-awaited Final Fantasy collection on Enjin. The game publisher waded deeper into the ecosystem by becoming a node validator on the Oasys blockchain.
The attacks by DLT have not gone down well with critics, as a cross-section of pundits have called the move “self-sabotage.” Undeterred by the criticism, Square Enix sunk 7 billion yen into a partnership with mobile game developer Gumi Games to create NFT-based game titles.
Matsuda’s letter pointed out that Square Enix is aware of attempts by governments to issue new regulations to govern the growing industry, and his company is taking the necessary steps to prepare for their impact.
See: BSV Global Blockchain Convention presentation, Scaling Games at Layer One: Why It Matters
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