Microsoft has made an investment in blockchain-focused game developer Wemade, despite previous statements from Xbox boss Phil Spencer expresses skepticism about the technology. The discourse surrounding blockchain-enabled “Play-to-Earn” video games has heated up, as players question the value and necessity of more extreme monetization. Xbox has been publicly reluctant to explore blockchain-enabled games, but this new Wemade investment shows it may be more open to the technology behind the scenes.
In an interview in August, Spencer directly addressed the topic of gambling for money. He said at the time that he was “wary” of blockchain games because they create a “workforce out of gamers.” As far back as 2021, Spencer described certain NFT games as feeling more “exploitative” than “about entertainment.” Suffice it to say that Spencer had strong opinions about blockchain-enabled games and worried that they could take advantage of Xbox’s audience.
Wemade confirmed Microsoft’s investment in the company on Wednesday, saying Microsoft was part of an investment round totaling nearly $46 million. How much of the $46 million contributed from Microsoft was not shared. Wemade is a game developer and NFT platform provider that describes the 2018 release Mir 4 as “the world’s first well-made blockbuster blockchain game.” The company has also dedicated itself to expanding and investing in building its “global digital economy platform” in the future.
Given Spencer’s point of view on the subject, Microsoft’s investment in Wemade comes as something of a surprise. Although Spencer is a representative of Microsoft, his views are not necessarily those of the company. Microsoft can see more of the future in blockchain technology and platforms than Spencer does. Spencer oversees Microsoft’s Xbox division and is certainly very influential at Microsoft, but will not have direct control over Microsoft’s investment efforts. Still, with Wemade as a game developer, it’s unclear if Spencer would be involved in the decision.
Alternatively, Microsoft may simply see investing in Wemade as an opportunity to diversify where they put their money. While blockchain technology is highly controversial, no one really knows whether it will be embraced or rejected in the future. Despite environmental concerns regarding cryptocurrency mining and NFT mining, criticism surrounding blockchain technologies is softening.
Regardless of Microsoft’s intentions to invest in Wemade, whether it is interested in the company’s gaming work or not, the decision will call into question the sincerity of Spencer’s previous comments. Although Spencer remains adamant that blockchain-enabled games will stay away from the Xbox, gamers may question whether Microsoft will push ahead anyway. The Wemade investment raises some important questions for Xbox to answer ahead.
Source: VGC
