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Square Enix plans to invest heavily in Web3 gaming and NFTs

Square Enix, one of the leading players in the blockchain gaming sector, unveiled its earnings report during the first quarter of 2022. The report showed that the firm will move towards non-fungible tokens (NFTs) and other blockchain offerings.

Square Enix wants to issue tokens

Square Enix is a game developer based in Japan, and it has $3 billion worth of assets under management. The report shows that the company unveiled the pilot phase for the Shi-San-Sei Million Arthur game in February this year.

If the pilot phase for the game is a success, a second season for the game’s NFTs will be unveiled, allowing the company to venture further into the NFT and blockchain gaming sector.

One of the blockchain-related plans for Square Enix is to create a clear regulatory framework that will govern blockchain games. It is also prioritising boosting scalability for NFT economies and launching a corporate capital venture unit that will support the project’s growth.

Square Enix also announced that it was planning to create an overseas firm that will handle the issuance, management and investments in the company’s native tokens. Through these initiatives, the firm will be closer to creating a vast gaming-token economy that will take it to the next phase of blockchain initiatives.

Square Enix partners with Animoca Brands

Square Enix has been working with Animoca Brands to support its entry into the blockchain gaming sector. Animoca is one of the largest players in the blockchain gaming sector, having worked on projects such as The Sandbox.

The two firms have been working together to grow and allow Square Enix to find its footing in the competitive and intuitive ecosystem. According to the executive chairman of Animoca, Yat Siu, the influence of Square Enix in gaming will allow it to command a significant share of the blockchain gaming sector.

“Square Enix has already been talking about the potential of blockchain games for a long time, so it gets it better than most of the traditional gaming giants out there,” Siu added.

The report also noted that the company would also focus on other technological areas, including monetising the blockchain sector, artificial intelligence, and cloud computing. These areas are key to the company fulfilling its medium-term business strategy.

The focus on these key areas also meets the objective of the company’s CEO, Yosuke Matsuda, who has plans for the company to achieve better engagements in these technological areas starting from January.

Web3 and the NFT gaming areas have surged in popularity since the start of this year. The growth of these two areas comes despite a recession in the cryptocurrency market. Data from DappRadar shows that the daily active blockchain gamers stand at around 1 million, the same number as of January 1.

However, the buying activity of gamers has been significantly low. The total sales volume for NFT gaming items has declined by 88%, from $70M reported at the beginning of January to $8.7 million reported on Saturday.

Ali Raza

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