Square Enix stays committed to Web3 gaming despite backlash

Square Enix stays committed to Web3 gaming despite backlash

Square Enix, the prominent Japanese gaming company behind the iconic Final Fantasy franchise, has doubled down on its commitment to blockchain gaming.

New fiscal report

In a recent end-of-fiscal year statement, the company acknowledged the criticism received from its fanbase and gaming communities after its pivot to blockchain gaming in early 2022.

Despite a slight decrease in turnover from around $2.7 billion to $2.5 billion and a workforce reduction of nearly 1,000 employees, Square Enix remains dedicated to pursuing the development of blockchain, Web3, and NFT games in the coming year.

Square Enix sees Web3 growth as a top priority and aims to establish itself as a trailblazer in the Web3 gaming space. The company is determined to establish itself as a frontrunner in Web3 gaming and expand its global investment activities by describing its blockchain business as an “initiative” poised for further growth. With a strong focus on accelerating the development of blockchain games, the company aims to prioritize this aspect in the upcoming year.

Initial success of Square Enix’s web3 games

Recently, Square Enix introduced an NFT game as part of its long-standing Million Arthur series, which received criticism from the international gaming community. However, the company reports that the game is gaining traction, with more than 75% of the issued NFTs sold last month and certain sets already sold out.

Additionally, Square Enix proudly highlights that its NFTs hold the top rank in transaction volume by item type on the Line Blockchain protocol.

Doubts still linger

As Square Enix forges ahead with its blockchain gaming initiative, doubts linger about the success of this strategic shift. The company firmly believes that relying solely on conventional gaming approaches would be insufficient for long-term prosperity.

Yosuke Matsuda, the President and CEO, has previously expressed the company’s ambition to explore “autonomous game content” and even discussed plans to introduce crypto assets. However, a leadership change is on the horizon, as Matsuda announced his decision to resign in June.

Takashi Kiryu, who will succeed Matsuda, brings a background from Dentsu Innovation Initiative, a company with its own Web3 credentials and a metaverse partnership with Microsoft established last year. The upcoming transition in leadership adds an element of uncertainty to Square Enix’s future endeavors in the Web3 landscape.

Despite facing criticism and experiencing a modest decline in financial performance, Square Enix remains resolute in its commitment to Web3 gaming, showcasing its unwavering determination to explore uncharted territories within the gaming industry.

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