Square Enix is ​​doubling down on misunderstood NFT projects in 2023

Square Enix is ​​doubling down on NFT in 2023, the company’s president revealed in his New Year’s letter for 2023. This reflects the company’s direction set in last year’s letter that caused quite a stir in the gaming community.

An annual tradition for Square Enix President Yosuke Matsuda, Square Enix published on his blog his 2023 New Year’s letter on January 1st. A new tradition in development is the company’s somewhat stubborn approach to blockchain technology and NFT in video games.

In his letter, Matsuda discussed the company’s medium-term business strategy process, which was elaborated in the company’s March 2022 financial results. Square Enix’s medium-term business strategies are distilled into three steps: (1) Strengthen [Square Enix’s] IP ecosystem, (2) Taking on new domains, and (3) Optimizing business structure for the COVID world. The second strategy involves initiatives to promote the Blockchain Entertainment domain, which is where the NFT systems come in.

“I think it’s fair to say that blockchain gained significant recognition as a field in 2022,” says Matsuda. “As evidenced by ‘Web 3.0’ becoming a well-established buzzword among business people. However, the year also saw volatility in the cryptocurrency and NFT (non-fungible token) markets following the dramatic changes in the macro economy described above. Especially the latter half of the year produced a dismal string of blockchain-related news, including the scandalous bankruptcy filing of FTX in November.”

It’s refreshing to see an NFT supporter acknowledge how blockchain technology has been mired in controversy over the past year. However, Matsuda’s takeaway was pretty grim for fans who want NFTs to stay out of video games as much as possible. Matsuda cited that the attention received by blockchain events during 2022 and the establishment of Japan’s “Priority Policy Program for Realizing a Digital Society” as good indicators for the future of blockchain technology and NFTs.

“New technologies and frameworks lead to innovation, but they also create significant confusion,” says Matsuda. “Having ridden out such societal tides, some such technologies and frameworks gradually become part of people’s lives, eventually giving rise to new businesses and growth.”

While blockchain technology and NFT’s ease of use and benefits it can bring to people is definitely something worth exploring, the gaming community has been vocal against NFT products being produced using video game titles and franchises that they love. Therefore, Square Enix NFT projects such as the Symbiogenesis project have been met with negative reception from fans. While Matsuda didn’t reveal what new NFT projects Square Enix will explore in 2023, he said the company isn’t looking at making a Final Fantasy NFT game anytime soon. However, the looming prospect of an NFT project ever touching Final Fantasy is something fans dread. Hopefully that day will never come.