Investing in blockchain gaming technology is part of the big game developer’s reworking of its business plan to incorporate a more robust NFT ecosystem.
Square Enix, the world’s largest video game publisher, said in its Q1 financial report that it plans to include nonfungible tokens (NFTs) in more of its games starting in 2022.
According to its most recent financial report, Square Enix (SE) is a Japanese video game developer with $3 billion in assets. On May 3, the business sold the Tomb Raider brand for $300 million to a private equity group.
Shi-San-Sei Million Arthur was the first game in which NFTs were tested, according to a report. The success of the pilot programme will lead to the second season of the game’s NFTs, which will eventually lead to the company’s expansion into the NFT and blockchain sectors.
As part of its blockchain domain ambitions, SE intends to provide legal clarity and norms for blockchain gaming, address scalability in NFT economies, and examine the establishment of a corporate capital venture unit.
An offshore organisation will be established by the business to “issue, administer and invest our own tokens,” implying that the firm intends to begin constructing an extensive gaming-token economy.
Animoca Brands, a blockchain gaming venture capital business, has been working with SE to investigate its alternatives. SE’s involvement in the ecosystem is likely to lead to further collaboration between the two companies.
Yat Siu, Animoca’s executive chairman, thinks Square Enix’s prominence in the game industry would help the company get a footing in blockchain gaming. On Monday, he told Cointelegraph:
When it comes to blockchain-based games, “Square Enix is ahead of most of the other conventional gaming companies in terms of understanding its potential.”
The third goal of the report’s medium-term business plan is to invest in and monetize blockchain, AI, and cloud computing. He has said that he wants to become more engaged with these technologies in January, and this is in keeping with that plan.
Although the crypto market has taken a turn for the worst, the popularity of Web3 and NFT gaming has remained strong throughout 2022. There were roughly one million daily active players on Saturday, according to DappRader, a market tracker.
As of Saturday, overall NFT gaming item sales volume had decreased 88% from $70 on January 1 to $8.7 million, which is less than half of what it had been in January.