The giant of the game Square Enix has revealed in its Q1 earnings report that it will expand non-fungible tokens (NFTs) to more gaming products as part of its mid-term business strategy in 2022.
Square Enix (SE) is a Japanese game developer with $3 billion in assets under managementaccording to its latest earnings report. The company owns Final Fantasy and sold the Tomb Raider franchise for $300 million on May 3.
The report notes that the company piloted NFTs in the Shi-San-Sei Million Arthur game starting in February of this year. The success of the pilot program will lead to the second season of the game’s NFT and ultimately the company will carry out other activities in the NFT and blockchain industries.
Among the top priorities of its blockchain initiatives, SE plans to establish regulatory clarity and guidelines for blockchain games, address scalability in NFT economies, and explore the possibility of founding a corporate capital venture unit.
The company also stated that it plans to establish an offshore entity that will be in charge of “issuing, managing and investing our own tokens”, suggesting that the company will begin to create an expansive gaming token economy.
SE has been working with metaverse venture capital and gaming company Web3 Animoca Brands to explore their options in the blockchain gaming space.. Cooperation between the two companies is expected to grow as SE moves deeper into the ecosystem.
Animoca CEO Yat Siu believes that Square Enix’s influence in the gaming sector will help the company gain a foothold in the blockchain gaming sector.. He told Cointelegraph on Monday:
“Square Enix has already been talking about the potential of blockchain gaming for a long time, so it understands it better than most of the traditional gaming giants out there.”
The report places blockchain, artificial intelligence (AI) and cloud computing investments and monetization as its third goal in its mid-term business strategy. This is in line with the intention expressed in January by CEO Yosuke Matsuda for his company to become more involved in such technologies.
.@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
.@animocabrands and @TheSandboxGame are very honored to be highlighted as key investment areas for @SquareEnix. I spent countless hours playing @FinalFantasy in the 80s, which remains one of the most influential RPGs in gaming history.
The popularity of Web3 and NFT games has remained robust throughout 2022 despite the overall cryptocurrency market slump. The DappRader market tracker shows that there were 1 million daily active players on Saturday, almost the same level as on January 1.
Nevertheless, Players aren’t buying as much as they used to as total NFT gaming item sales volume has fallen 88% from $70 million on January 1 to $8.7 million on Saturday.
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