By James Davis
Despite the ongoing bear market and backlash from video game enthusiasts over the possible integration of NFTs in gaming, Square Enix, the developer of major franchises like Dragon Quest and Final Fantasy, is still focused on Web3 gaming.
The Japan-based firm has recently increased its presence in the Web3 space. Yesterday, Square Enix CEO Yosuke Matsuda released an annual new year’s letter for 2023 detailing the firm’s focus on blockchain-powered games.
Matsuda revealed Square Enix plans to develop several blockchain games based on original IP rather than the firm’s present franchises. He added that Square Enix would consider investing in promising blockchain companies based in Japan or abroad.
In the letter, Matsuda noted the increasing use of the term Web3 among businesspeople. He also highlighted the market challenges that transpired last year, like the downfall of the crypto exchange FTX and its effect on the entire market.
However, the Square Enix president hopes blockchain games will transition this year to a new growth stage despite the challenges. Matsuda’s recent annual letters have revealed Square Enix’s interest in blockchain technology, and the firm has since made several moves to get into the space.
Square Enix Continues to Embrace Blockchain Technology
In November 2022, Square Enix announced Symbiogenesis, an original game developed around Ethereum NFTs. The game is set to launch later this year. According to the firm, the gameplay revolves around deciding whether to share information with other players or monopolize it.
Furthermore, in early December 2022, Square Enix revealed it would offer strategic advice to a digital trading card game Cross the Ages. Last year, the game developer also invested In ZEBEDEE, a Bitcoin gaming firm; in 2020, it invested in The Sandbox, a metaverse game.
In addition, Square Enix entered into a deal with Embracer Group last May to sell three internal studios alongside major franchises like Deus EX and Tomb Raider. The Japanese firm raised over $250 million from the deal and said the funds would help to build more blockchain games.
Traditional Gamers Oppose the Rise of Web3 Games
As Web3 advocates think that NFTs represent ownership of unique art and that players can benefit from reselling them, many gamers have continued to oppose the increasing development of Web3 games, pointing to several scams witnessed in the crypto space.