Square Enix plans to issue tokens and invest heavily in Web3 games

Gaming giant Square Enix revealed in its first-quarter earnings report that it will expand non-fungible tokens (NFTs) to more gaming products as part of its mid-2022 business strategy.

Square Enix (SE) is a Japanese game developer with $3 billion under management according to its latest earnings Report. The company owns the Final Fantasy property and Tomb Raider series for sale Sold on May 3 for $300 million.

The report states that the company piloted NFTs in the Shi-San-Sei Million Arthur game starting in February this year. The success of the pilot program will lead to a second season of Gaming NFTs, which will eventually see the company develop broader activities in the NFT and blockchain industry.

Among the top priorities of its blockchain sector plan, SE plans to establish clear regulations and guidelines for blockchain gaming, address scalability issues in the NFT economy, and consider establishing a corporate capital venture capital arm.

The company also said it plans to establish an overseas entity to handle “issuing, managing, and investing in our own tokens,” a sign that it will begin creating an expanded gaming token economy.

SE has been working with Web3 Gaming and Metaverse Venture capital firm Animoca Brands explores its options in blockchain gamble space. The collaboration between the two companies is expected to grow as SE moves further into the ecosystem.

Xiao Yi, executive chairman of Animoca, believes that Square Enix’s influence in the gaming field will only help the company gain a firm foothold in blockchain gaming. He told Cointelegraph today:

“Square Enix has been talking about the potential of blockchain gaming for a long time, so they are doing a better job than most traditional gaming giants.”

related: GameFi shows signs of maturity: report

The report identified the investment and monetization of blockchain, artificial intelligence (AI) and cloud computing as the third objective of its medium-term business strategy. This is in line with the intent expressed by CEO Yosuke Matsuda. become more engaged Among these technologies in January.

The popularity of Web3 and NFT games Despite the general downturn in the crypto market, it remains strong throughout 2022.market Tracker DappRader showed that there were 1 million daily active gamers on May 14, almost the same level as on January 1.

However, gamers aren’t buying as much as they used to, as total sales of NFT in-game items fell from $70 on January 1 to $8.7 million on May 14.