Square Enix, one of the world’s largest game developers, has planned to incorporate more nonfungible tokens (NFTs) into some of its products as part of its medium-term business strategy. Despite a general downturn in the crypto markets, NFTs and blockchain gaming continue to grow in popularity. With its investment in blockchain gaming infrastructure and several other initiatives, Square Enix plans to establish a more robust ecosystem for NFTs.
Its top priorities are establishing regulatory clarity and guidelines for blockchain games, tackling scalability in NFT economies, and considering founding a corporate capital venture unit.
Additionally, the firm plans to establish an overseas entity that will issue, manage, and invest its own tokens, suggesting that it will be creating its own gaming-enabled token economy.
Square Enix has been exploring its options in the blockchain gaming space with Metaverse venture capital firm Animoca Brands in recent months. Collaboration between the two renowned companies is expected to expand as Square Enix dives deeper into the ecosystem.
Tech Entreprenuer Yat Siu Verdict
It’s a great step forward for the blockchain gaming industry. While some big firms have been initially wary of blockchain technology and its potential implications, it appears that Square Enix is taking a very proactive and forward-thinking approach to the space.
On this, Animoca’s Executive Chairman Yat Siu thinks that Square Enix’s influence in gaming will only help it form a foothold in blockchain gaming. Moreover, he believes that the company’s long-term strategy will eventually benefit the Metaverse as a whole.
He applauded the company’s plans to establish an overseas entity for issuing and managing tokens. This is because it will help with both cross-border payments and regulations. It’s still early days for blockchain gaming, but with moves like this from Square Enix, it’s clear that the industry has a bright future ahead. “Square Enix has already been talking about the potential of blockchain games for a long time, so they get it better than most traditional gaming giants.
Major Development in the Gaming Industry
This is a significant development in the gaming industry as a whole, not just in the blockchain gaming space. For one of the well-known game developers in the world to begin making such heavy investments in NFTs and blockchain gaming suggests that the technology is here to stay and that it will only become more relevant in the coming years.
The report puts investments in and monetizes blockchain, artificial intelligence (AI), and cloud computing as its third objective in its medium-term business strategy. According to CEO Yosuke Matsuda, he intends to become more involved in those technologies in January. Even bitcoin and other cryptocurrencies had been on the company’s radar as it considered how to get involved in those spaces.
Despite a downturn in the broader crypto market, Web3 and NFT gaming have remained popular throughout 2022. As of May 14, the daily active gamers on DappRader were almost the same as they were on January 1.
Gamer sales fell 88% from $70 on January 1 to $8.7 million on May 14, as the total sales volume for NFT game items dropped 88% from $70 on January 1 to $8.7 million. However, gamers do not buy as much as they used to, as the total sales volume for NFT game items dropped 88%, from $70 on January 1 to $8.7 million on May 14.
Square Enix’s expansion into the world of NFTs and blockchain gaming is sure to be a major development in the space. What do you think about Square Enix’s plans for the issuance of tokens? Let us know your thoughts in the comments section below.