Square Enix will issue tokens and will invest more in Web3 gaming with hopes to reshape the business strategy and include a robust NFT ecosystem by investing in blockchain gaming infrastructure so let’s read more today in our latest cryptocurrency news.
The major game developer Square Enix will issue tokens and will invest heavily into Web3 gaming as well as into NFTs as a part of its medium-term business strategy in 2022. Square Enix is a Japanese game developer with $3 billion in assets under management as per the latest earnings reports the company owns the Final Fantasy property and sold the Tomb Raider franchise for $300 million. The report stated that the company piloted NFTs on the Shi-San-Sei million Arthur game starting in February and the success of the pilot program will lead to the second season of the game’s NFTs and will see the company pursue broader activities in the NFT and blockchain industries.
Among the top priorities of the blockchain domain initiatives, the SE plans one establish regulatory clarity and guidelines for the blockcahin games that tackle scalability in NFT economics and consider founding a corporate capital venture unit. The company stated that it aims to establish an overseen entity that will handle issuing, managing, and investing in their tokens suggesting, that the company will start creating an expensive gaming token economy. Square Enix was working with the Web3 gaming and Metaverse venture capital company Animoca Brands to explore the options in the blockchain gaming space and the cooperation between the two companies is expected to grow before delving furhter into the ecosystem.
Animoca’s Executive chairman Yat Siu thinks that Square Enix’s influence in gaming will help the company form stability in the blockchain gaming sector:
“Square Enix has already been talking about the potential of blockchain games for a long time so they get it better than most of the traditional gaming giants out there.”
The report puts investments in and monetization of blockcahin, AI, and cloud computing as a third objective in the medium-term business strategy. This is in line with CEO’s intention for the company to become more involved in the technologies in January. The popularity of Web3 and NFT gaming remained robust in 2022 despite a general market downturn. The market tracker DappRadar shows that there are 1 million daily active gamers at almost the same level as of January 1. The gamers are not buying as much as they used to the total sales volume for the NFT game items which dropped 88% from $70 to $8.7 million.
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