While the cryptocurrency markets remain low and many video game enthusiasts are clamoring counter NFT potential in the gameOne major game publisher remains in the spotlight Web3 game: Square Enix, creator of major franchises such as Final Fantasy and Dragon Quest.
The Japanese firm has gradually increased its investment and involvement in the Web3 space and President Yosuke Matsuda over the past few years. Annual New Year letter for 2023he explained that Square Enix is ”most focused” on blockchain-powered games among its new business development efforts.
Matsuda writes that Square Enix is developing “multiple blockchain games” based on original IP rather than existing franchises, and the firm plans to announce additional games this year. The firm is still considering investment opportunities around blockchain. “[We] We will continue to acquire shares in promising businesses, regardless of whether they are located in Japan or abroad.”
Matsuda’s letter points to the increasing use of the term Web3, which he writes has become “an established buzzword among business people.” However, it also points to emerging market challenges in 2022 collapse of cryptocurrency exchange FTX November and subsequent industrial infection.
Matsuda explained, “Blockchain has been the subject of excitement and confusion, but with the rearview mirror, we expect blockchain gaming to enter a new phase of growth in 2023.”
Interest in blockchain technology has increased The core of Matsuda’s annual letter in recent years, and Square Enix has increased its moves in the space along the way.
In November, Square Enix announced its first original game Ethereum NFTs, It is called symbiogenesis. Launching this spring, it’s a “digital collectible art experience” with narrative elements. Company he tweeted recently that “the game process revolves around monopolizing or choosing [share]” information about other players.
Square Enix also recently announced that it will be a strategic advisor Crossing the Agesdigital trading card game built on Polygonand Invested in a Bitcoin gaming startup ZEBEDEE. That too In 2020, The Sandbox invested in the metaverse gameand revealed his plans last year animate its dormant Dungeon Siege property Like the in-game experience in The Sandbox.
Last year, Square Enix announced its plans Release Final Fantasy NFTs Through the engine Polkadotbased Efinity platform. The NFTs are based on the popular game Final Fantasy VII and are linked to physical trading cards and toys that will be released this year.
Square Enix last May sold three indoor studios to Embracer Group for $300 million, along with core franchises including Tomb Raider and Deus Ex. The publication said the sale will benefit its growing push into blockchain games.
Square Enix is one of the few major traditional game publishers committed to growing the blockchain space. Ubisoft, the creator of Assassin’s Creed and Just Dance games, did it invested and partnered a number of crypto game studios and released the first in-game NFT items Ghost Recon: Breakpoint for a big franchise game in late 2021.
Meanwhile, Take-Two Interactive, the publisher behind Rockstar Games and 2K Games, the makers of Grand Theft Auto and NBA 2K respectively pushed into the NFT space through his casual games studio, Zynga. Take two It also invested in Horizon Game Studios Along with Ubisoft, but Rockstar Games since then Banned the use of NFTs On Grand Theft Auto V servers.
Web3 proponents believe that NFTs, or tokens that represent ownership of unique items, can power decentralized, player-owned gaming economies and benefit players through the ability to resell items and potentially use them in multiple games.
However, many players they pushed back against the rise of Web3 games and NFT collections, which point to scams in the crypto industry, simplified gameplay for many early Web3 game examples, and speculative demand that drives up the prices of some assets.
In his letter, Matsuda highlighted the past speculative frenzy around NFTs, but he wrote that he believes the focus on monetization will lead to an increased view of the prospective functional benefits of NFTs for players.
“Following the aforementioned turbulence in the cryptocurrency industry, there is now a tendency to view blockchain technology as merely a means to an end and discuss what needs to happen to achieve the end of delivering new experiences and excitement to customers. ” he wrote. “I see this as a very beneficial development for the future development of the industry.”