Major Game Publisher Square Enix Continues to Invest in Blockchain Games Despite Bear Market

Prominent Japanese video game developer and publisher Square Enix has revealed that it will continue to invest in blockchain games despite the recent turbulence in the crypto market.

In a Sunday letter, Yosuke Matsuda, the president of the company, said the game publisher will double down on Web3 gaming in the upcoming year. He detailed that Square Enix is “most focused” on blockchain-powered gaming amid its new business development efforts.

Matsuda said that Square Enix is developing “multiple blockchain games” based on original IP, rather than its existing franchises, with plans to launch even more such games in 2023. The firm is also still considering investment opportunities around blockchain “in Japan or abroad,” he wrote.

“Blockchain has been an object of exhilaration and a source of turmoil, but with that in the rearview mirror, we hope that blockchain games will transition to a new stage of growth in 2023.”

Matsuda noted that despite the extreme volatility in the crypto and NFT space and a somber string of news stories with blockchain connections, including the scandalous bankruptcy filing of FTX in November, there was still widespread adoption of blockchain technology. He said:

“Looking externally, I think it is fair to say that blockchain gained significant recognition as a field in 2022, as evidenced by “Web 3.0” becoming a firmly established buzzword among businesspeople.”

He specifically mentioned the Japanese government’s focus on encouraging Web3 development as part of a plan called the “Priority Policy Program for Realizing a Digital Society.” The country even awarded some authorities with NFTs. 

Matsuda also tried to portray the recent crypto market downturn as natural. He said that new technologies often cause “confusion” before gaining widespread adoption. So if there is turmoil in the crypto market, this shouldn’t necessarily cause investors to doubt its potential.

Square Enix is a video game publisher and developer headquartered in Shinjuku, Tokyo, Japan. The company is known for its science fantasy anthology media franchise Final Fantasy which has become a global phenomenon due to its cutting-edge graphics. 

In November last year, the company announced its first blockchain game. Called Symbiogenesis, the game was built around Ethereum NFTs and described as a “digital collectible art experience.” According to a recent tweet, the “gameplay revolves around choosing whether to monopolize or [share]” information with other players.

As reported, Square Enix also partnered with NFT platform Enjin to launch its digital collection of cards celebrating the 25th anniversary of Final Fantasy 7, a 1997 role-playing video game. The NFTs are based on the popular game Final Fantasy VII, and are tied to physical trading cards and toys that will be released this year.