Square Enix Has Plans For The Blockchain, Metaverse, And NFTs

January 23, 2022 2:57 pm

Square Enix sees the potential of the new play-to-earn model that is offered by blockchain based games as opposed to traditional games that are under the play for fun model.

As a result, the company intends to bridge the gap between the two different types of gaming world as it sees the emergence of a metaverse as much more than a fad, especially with the recent rebranding of the Facebook name to Meta.

The CEO of the company expects that 2022 will be a big year for the metaverse industry as the rest of society slowly starts embracing the virtual worlds in the same aspect that people all around the world are connected via the internet today.

Upcoming technologies cloud computing and 5G will all play a part in making the concept a reality in the near future.

CoinTelegraph.com reports:

“As this abstract concept begins to take concrete shape in the form of product and service offerings, I am hoping that it will bring about changes that have a more substantial impact on our business as well.”

He goes on similarly about NFTs, then blockchain and play-to-earn.

Matsuda points out that 2021 was “year one” for NFTs and the metaverse, during which there was a lot of wild trading that didn’t always correspond with market speculations.

Investments in blockchain are still rising at a rapid rate, and some of the most adamant in trying to legitimize blockchain technology have been companies from the gaming business.

Square Enix initially invested in the metaverse by taking part in a $2-million funding round for The Sandbox, an Ethereum-based metaverse game. Matsuda’s annual letter indicates that the firm is doubling down on several developing technologies.

The company’s announcement also goes into further detail in terms of why they think other gaming models besides play for fun is necessary for the company’s future growth.

On the company’s website, Square Enix explains that there will always be a significant amount of people who’s motive for gaming aligns more with a play-to-contribute model.

By this, this group of people want to contribute to make a game more exciting and there has been no incentive for them besides doing it out of good will or wanting to express themselves creatively.

With the emergence of token economies in games, these types of gamers will not have actual motivation for creating user-generated content because their efforts will actually be rewarded with tangible benefits.

As a result, this would create a self-sustaining game growth because it satisfies all types of gamers which includes people who are looking to have fun, people who are looking to earn, and people who are looking to contribute.

The company describes this model as a form of “decentralized gaming” that the overall gaming industry could eventually evolve to as blockchain continues to grow.

Square-enix.com concludes:

Our lifestyles have changed, and we are learning to coexist with COVID-19.

Against that backdrop, I believe that the new technologies and concepts that I have discussed and the changes that they bring to our business environment will provide us with numerous opportunities to enrich people’s lives through digital entertainment, which is at the core of our business.

This at the same time means that we are seeing the beginnings of further leaps forward for our business.

We remain committed to creating, developing, and providing world-class content, and we will contribute to the happiness of society and its people by offering new forms of excitement.

 

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