Square Enix to expand its Web3 commitments in 2023

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(Kitco News) – As the blockchain ecosystem struggles to regain its footing following a disastrous 2022, Japanese gaming giant Square Enix – creator of the popular Final Fantasy franchise – is looking to reassure the crypto community that it has no intention of abandoning its Web3 aspirations in 2023.

According to a New Year’s letter from Square Enix president Yosuke Matsuda, blockchain entertainment is the new business domain that the company is most focused on and has devoted “aggressive investment and business development efforts” to it.

Matsuda noted that blockchain saw a boost in recognition in 2022 despite the volatility seen in the crypto and non-fungible token (NFT) markets. This was especially pronounced in the area of Web 3.0, which became a “firmly established buzzword among businesspeople.”

The country of Japan continues to take an open stance towards the development of blockchain technology, with Prime Minister Fumio Kishida saying during a speech last October that the country wants to expand the use of Web3 services utilizing the metaverse and NFTs.

Matsuda highlighted the fact that while new technologies and frameworks have the ability to lead to innovation along with confusion and turmoil, some of them eventually become part of people’s daily lives and give rise to new businesses and growth.

“Following the excitement and exhilaration that surrounded NFTs and the metaverse in 2021, 2022 was a year of great volatility in the blockchain-related space. However, if this proves to have been a step in a process that leads to the creation of rules and a more transparent business environment, it will definitely have been for the good of the growth of blockchain entertainment,” he said.

The gaming company president went on to emphasize the importance of blockchain gaming continuing to operate based on a self-sustaining decentralized model.

According to Matsuda, the turmoil of 2022 has pushed out the speculative investors who were focused on content created based on the premise that blockchain and NFTs should result in monetization.

“There is now a trend to view blockchain technology as a mere means to an end and to discuss what needs to happen to achieve the end of delivering new experiences and excitement to customers,” Matsuda said. “I see this as a very beneficial development for the future growth of the industry.”

Square Enix has already revealed multiple blockchain games based on original IPs under development and continues to make preparations to unveil additional titles over the next year.

“Blockchain has been an object of exhilaration and a source of turmoil, but with that in the rearview mirror, we hope that blockchain games will transition to a new stage of growth in 2023,” Matsuda said. “Our Group intends to achieve further growth by continuing our self-sustaining evolution and transformation as we remain watchful for the changes that will occur in the next decade and beyond. We will drive our businesses forward with the goal of making 2023 a year of major evolution and transformation.”

Square Enix now plans to move away from the current model of having its Japan-based and Western publishing organizations operate independently of each other, and will instead form a single global organization called “One Square Enix.” The goal of this move is to “capture as much of the upside as possible from the digital shift.”