Square Enix President Details Web 3.0 And Blockchain Growth Initiatives For 2023

He believes the philosophy of decentralized, self-sustained blockchain gaming is key to the industry’s future growth.

Square Enix president and representative director Yosuke Matsuda has explained the company’s approach to NFTs, Blockchain games and Web 3.0 development in a recent New Year’s letter, in addition to teasing multiple new blockchain games in development based on original IPs.

The director attributes Square Enix’s initiative to double-down on blockchain development to the drastic shift in the macroeconomy caused by the pandemic and how it caused volatility in the cryptocurrency and NFT markets, leading to a need to regulate these businesses more strictly. The director still sees a potential for growth and innovation in this market if it starts having transparent rules, and he references Japan’s 2022 policy programs for realizing a Digital Society as a positive step in the creation of these rules and facilitating the growth of the Web 3.0 and blockchain entertainment.

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The director also praised the decentralization aspect of Web 3.0 in how it is self-sustaining compared to traditional gaming. Decentralization refers to the concept of players or individuals owning and governing the content they use instead of having it mediated by a third-party or a government like Web 2.0 social media websites, therefore controlling the sustainability of the content by themselves.

Nevertheless, the volatility of the cryptocurrency market due to outside factors – which is something players cannot control – creates a major hurdle in face of this idealistic goal, and that’s why the director speaks about creating gaming experiences that will keep players entertained and excited first and foremost, instead of focusing on monetization before anything else. That way, they won’t leave the game if the value of their digital assets declines or if the in-game economy collapses.

In a related topic, the director also explained the reason for the divestment of Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal to Embracer group, which is to concentrate their resources on strengthening internal development and investing in the developments of titles that are “Competitive globally,” as well as to preserve the costs needed to pursue such endeavors.

Square-Enix has previously invested in the Sandbox Etherum Metaverse project with its Dungeon Siege IP, which has seen considerable and sustainable growth in the previous years. The company also announced Symbiogenesis, its first NFT collectible art project in which players can untangle a mystery depending on how they handle their in-game resources. The project is set to release next spring on Google Chrome and other browsers.

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