Square Enix plans to issue tokens, in partnership with Animoca Brands
Square Enix is reshaping its business strategy by investing heavily in NFT and blockchain games.
Gaming giant Square Enix revealed in its Q1 2022 earnings report that it would expand more NFT features into its gaming products as part of its mid-term business strategy in the coming weeks. 2022 sold the Tomb Raider franchise for $300 million to Embracer Group in early May to shift investment in blockchain.
The report states that Square Enix has been testing NFT on the Shi-San-Sei Million Arthur game starting in February of this year. The success of the pilot program will lead to the official NFT version of the game.
Among the top goals of its blockchain domain projects, SE intends to develop legal clarity and norms for blockchain gaming, address scalability in NFT economies, and consider establishing a corporate capital venture unit.
The company also announced it is planning to set up an overseas organization that will handle the issuance, management, and investment of tokens provided by the company itself. This shows that Square Enix will begin to create an expanding game token economy of its own.
To materialize this ambition, Square Enix worked with popular Web3 blockchain game company Animoca Brands to explore its options in the blockchain gaming space. The partnership between the two companies is expected to grow and explore further as Square Enix moves deeper into the crypto ecosystem.
Animoca CEO Yat Siu believes that Square Enix’s influence in the traditional gaming space will easily help the company establish a foothold in the blockchain gaming industry. He said:
“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.”
The popularity of Web3 and NFT games remains strong throughout 2022 despite the overall downturn of the crypto market. According to DappRader, blockchain game is the leader of the crypto industry right now, exploding 2,000% in the past year. Market tracker DappRader shows that there were 1 million daily active gamers on Saturday, nearly the same level as on January 1.
However, gamers are not buying as much as they used to, as total sales volume for NFT game items has dropped 88% from $70 million on January 1 to $8.7 million on Saturday.
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