Square Enix is coming with blockchain games, cryptocurrencies and more in 2023
The Alpha:
- Square Enix, the company behind franchises like Final Fantasy, Kingdom Heartsand Tactics Ogreis committing to its blockchain strategy in 2023, according to the annual letter from company president Yosuke Matsuda.
- The firm aims to launch several blockchain games and NFT projects using brand new IPs sometime in 2023.
- The Japanese game company also plans to establish a game and service publishing business centered on blockchain games.
- Notably, it will also issue, manage and invest in its own cryptocurrencies as an international entity this year.
Why it matters
Square Enix has renewed its commitment to all things Web3. Best known for gracing the world with video game beloved franchises like Final Fantasy and Kingdom Heartsthe firm opened the new year with an update on its blockchain and Web3 strategy, debuting plans to use its world-building and storytelling expertise to launch more blockchain games and NFT projects with brand new IPs sometime in 2023. Additionally the Japanese games are coming. The company intends to issue, manage and invest its own set of cryptocurrencies within the year as part of its existence as an international entity.
To further its global presence, Square Enix also shared plans to establish a game and service publishing business centered on blockchain games. Considering the recent sale of its western studios to the Embracer Group, there is some indication that the company wants to further build the reputation of its state-owned game development arm in the international market. Throughout the year, Square Enix may also establish a venture capital unit, indicating a strong interest in following up on the initial Web3 investments in Animoca Brands and The Sandbox.
The move could confuse Square Enix’s core gaming audience, which spent much of 2022 fighting against introducing this new technology into its beloved medium. Regardless of the stinging reception blockchain technology has received among the wider gaming market, Square Enix has been quietly building a presence in Web3 over the past few years.
In 2021, Square Enix released an NFT collection for its Japan-only mobile game Shin-San-Sei Million Arthur on the LINE blockchain, and later released it as a mobile blockchain game in the Japanese market as a proof of concept for future blockchain game titles. In 2022, Shin-San-Sei Million Arthur completed its first season, providing important insights into publishing and maintaining a blockchain-enabled game. In 2022, Square Enix also teamed up with Enjin to deliver a collectible digital cards and figures based on Final Fantasy VII in celebration of the landmark title’s 25th anniversary.
Japan is taking the lead in bringing Web3 to the public
Square Enix may spend 2023 planning the financial structure of its future blockchain game titles, citing the document’s exploration of user-generated content and effective community self-governance. Citing Japan’s interest in using blockchain technology to serve the Japanese population, in addition to the increased regulations centered around the crypto and NFT space taking place around the world, Matsuda described the firm’s response to the volatility in the space as necessary steps for to create “a more transparent business environment.” Locally, this includes the Japanese government-endorsed Priority Policy Program for Realizing a Digital Society, along with the creation of a DAO in November by its official Digital Agency centered around studying Web3 as closely as possible.
The move also comes in the wake of the Japanese government’s interest in integrating blockchain technology into its services for the population of the island nation. Addressing concerns of readers familiar only with the negative 2022 headlines regarding Web3, Matsuda emphasized the legitimacy of this strategy as a business decision in his letter. This makes sense, because Square Enix’s decision also contrasts with the wider gaming market’s attitude towards NFTs, best exemplified by Minecraft’s July 2022 ban of all blockchain technology from the platform.
“2023 is a milestone year for us in that it marks the 20th anniversary of the merger of Enix and Square,” Matsuda said in his letter. “Against a backdrop of staggering change in our business environment, we have achieved significant growth driven by the myriad opportunities that have arisen over the past two decades. […] We will drive our businesses forward with the aim of making 2023 a year of great development and transformation.” With a world-renowned powerhouse of story and world-building in games, Square Enix’s move could be a step toward reassuring industry consumers who fear that Web3 games lack substance.
