Square Enix Commits to Blockchain Entertainment and Web3 in 2023

• Square Enix has committed to focusing on “blockchain entertainment” and Web3 in 2023.
• The company explored non-fungible token (NFT) initiatives in 2022 and saw positive feedback.
• Square Enix has seen an increase in smart device and PC sales, prompting them to focus on amplifying digital sales and entertainment.

Square Enix, the legendary gaming studio, has announced its continued commitment to Blockchain technology and digital assets in 2023. In a letter published by the company’s president Yosuke Matsuda, the company expressed their focus on „blockchain entertainment“ and Web3.

The gaming studio explored non-fungible token (NFT) initiatives in 2022 and saw positive feedback, according to the company’s financial results. Matsuda commented on the reception, stating “we are most focused on blockchain entertainment, to which we have devoted aggressive investment and business development efforts. Looking externally, I think it is fair to say that blockchain gained significant recognition as a field in 2022.”

The interest in the sector could be based on the spike in sales from mobile games, as seen in the chart below. The net sales revenue from smart devices and PCs has been trending to the upside since 2020, becoming a bigger part of the company’s contribution.

In terms of the physical game versus digital game sales, digital game sales have become more critical for the company since Q3 2020. This metric continues to rise today and, combined with the net sales revenue, explains the interest in amplifying digital sales and entertainment.

In order to expand their presence in the blockchain space, Square Enix will launch an overseas entity dedicated to “issuing, managing, and investing our own tokens” and publishing games in countries with “wide cryptocurrency usage.” The gaming studio will also focus on generating new revenue streams with the help of digital assets and blockchain technology.

Square Enix will also launch a “White Paper” to explain the company’s commitment to blockchain technology and digital assets. The paper will outline the “new media revolution” that the company looks forward to, as well as the strategies they will use to capitalize on the potential opportunities in this space.

The gaming studio’s commitment to blockchain technology and digital assets will have far-reaching implications for the industry. With the increasing popularity of digital assets and blockchain technology, Square Enix’s focus on this space could create a new wave of innovation and opportunity within the gaming industry.