. The major game developer has restructured its business strategy to include a stronger NFT ecosystem.
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Gaming giant Square Enix has revealed in its Q1 earnings report that it will expand nonfungible tokens (NFTs) into more game products as part of its medium-term business strategy in 2022.
Square Enix (SE) is a Japanese game developer with $3 billion in assets under management, according to its latest earnings report. The firm owns the Final Fantasy property and sold the Tomb Raider franchise for $300 million on May 3. The report says that the firm started piloting NFTs for the Shi-San-Sei Million Arthur video game in February 2018. The pilot program’s success will result in the launch of the second season of NFTs on the Shi-San-Sei Million Arthur game. This will allow the firm to expand its activities in the NFT/blockchain industries.
Among the top priorities of its blockchain domain initiatives, SE plans on establishing regulatory clarity and guidelines for blockchain games, tackling scalability in NFT economies and considering founding a corporate capital venture unit. The firm stated that it will establish an overseas entity to manage and invest its own tokens. This suggests that the firm is aiming to create a global gaming-token market.
SE has been working with Web3 gaming and metaverse venture capital firm Animoca Brands to explore its options in the blockchain gaming space. As SE explores the ecosystem further, cooperation between the two companies is expected to increase.
Animoca’s executive chairman Yat Siu believes Square Enix’s influence in gaming will only help the firm form a foothold in blockchain gaming. He told Cointelegraph on Monday:
“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 report puts investments in and monetization of blockchain, artificial intelligence (AI) and cloud computing as its third objective in its medium-term business strategy. This is in line with CEO Yosuke Matsuda’s expressed intention for his company to become more involved in those technologies in January.
. @animocabrands & @TheSandboxGame are very honored to be highlighted as key investment areas for @SquareEnix I spent countless hours playing @FinalFantasy in the #80’s which continues to be one of the most influential RPG games in gaming history #NFT https://t.co/KcgmhHv1CO pic.twitter.com/PnMWHs4iTj
— Yat Siu (@ysiu) May 16, 2022
The popularity of Web3 and NFT gaming has remained robust throughout 2022 despite a general crypto market downturn. 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 on January 1 to $8.7 million on Saturday.