Square Enix does not change course and still believes in blockchain and NFT

Japanese publisher Square Enix took advantage of the beginning of this new year 2023 to present the greeting card through its leader, Yosuke Matsuda.

Like the wishes that were expressed last year where the interested party has expressed its intention to invest in NFT and blockchain technologywhich also caused the stock to rise Square Enixwell things and the course on the horizon should not change for this year 2023 with the Japanese publisher who once again affirms his faith in these technologies despite the fluctuations and situations that occurred in the field of cryptocurrency in 2022.

“In terms of new business areas, we have identified three targeted investment areas in our mid-term business plan. Of these, we are most focused on blockchain entertainment, to which we have devoted aggressive investment and development efforts of corporations. Looking from the outside, I think it’s fair to say that blockchain has gained significant recognition as a field in 2022, as evidenced by the fact that “Web 3.0” has become a strong buzzword among professionals. However , the year also saw volatility in the cryptocurrency and NFT (non-fungible token) markets that followed the dramatic changes in the macro economy described above. In particular, the second half of the year produced a number of dark blockchain-related news, including the statement scandalous bankruptcy by FTX in November.

Following these events, we are hearing rumors from some countries of early moves to more strictly regulate such companies. In Japan, on the other hand, the push to encourage such enterprises has gained momentum, led by the government. In June 2022, the Japanese Cabinet approved a plan called the “Priority Policy Program for Realizing a Digital Society”, which includes provisions for creating an enabling environment for promoting the concept of Web 3.0, including the use of NFTs based on blockchain technology. The Japan Digital Agency has also launched a Web 3.0 study group.

New technologies and frameworks drive innovation, but they also create great confusion. Riding these social waves, some of these technologies and frameworks gradually become part of people’s lives, eventually bringing new businesses and growth. After the excitement and euphoria surrounding NFTs and metaverses in 2021, 2022 has been a year of high volatility in the blockchain-related space. However, if it turns out to have been a step in a process that leads to the creation of rules and a more transparent business environment, it will undoubtedly have been beneficial to the growth of blockchain fun.

By closely monitoring these environmental changes and considering from a higher perspective what Web 3.0 and blockchain entertainment really are, all this represents a different picture than what we would have if we focused on them alone in terms of technology or speculative investments. As I said in last year’s welcome letter, if we consider traditional games as centralized, then blockchain games should work based on a decentralized self-supporting model. It is this concept, this philosophy that I consider essential.

That said, the kind of new experiences and thrills our digital entertainment business can offer our customers through its self-sustaining and decentralized game development efforts and other projects is extremely important.

Several blockchain gaming events held abroad recently have sparked more active discussions than ever before about what makes gaming exciting. However, in 2021 the market was fueled more by speculative investors than gamblers. In other words, the content that was in the foreground was created based on the premise that blockchain and NFTs should lead to monetization. However, after the aforementioned turbulence in the cryptocurrency industry, there is now a tendency to see blockchain technology simply as a means to an end and to discuss what needs to be done to achieve the end to provide new experiences and emotions for customers. I see this as a very beneficial development for the future growth of the industry.

Square Enix has several original IP-based blockchain games in development, some of which we announced last year, and we’re gearing up to reveal even more titles this year. We are also involved in global sourcing from an investment perspective and will continue to take stakes in promising companies we find in Japan or abroad. Blockchain has been an object of joy, but also a source of turmoil, but now that this is in the past, we hope that the blockchain games will enter a new phase of growth in 2023.

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