Square Enix reveals blockchain gaming plans in latest annual financial report
The report mentions the formation of a Blockchain Entertainment Business Division, provides additional explanation regarding their recent $300 million sale and more.
Final Fantasy publisher and developer Square Enix recently published their latest annual financial report which contains some information on what it plans to do in the field of blockchain and NFT gaming.
Various financial statistics aside, the report contains a section on “medium-term business strategy progress” which mentions 3 business strategies: strengthening the company’s IP ecosystem, taking on new domains and optimizing business structure for a COVID world.
The first and third one have to do with the recent sale of the company’s high-profile IPs and studios, providing further info on the reasoning behind the deal. The goals described as a result of the selloff include “[achieving] sustained growth through selection and concentration of company resources,” improving the alignment of “overseas publishing function with organization in Tokyo,” and forming “new businesses by moving forward with investments in focus fields,” which include AI, the cloud and blockchain technology. Not only does the Japan-based firm plan to launch new game dev studios, but it also intends to create new IP while upgrading the existing publishing structure by hiring a Chief Publishing Officer and “[speeding] up decision-making through integrated group management.”
As for the second business strategy, this is where things go in more detail regarding crypto gaming. This part of the report mentions that the company formed a Blockchain Entertainment Business Division back in February this year, while also completing Season 1 of Shi-San-Sei Million Arthur in March this same year, a blockchain card game which will be getting another season as the developer is “encouraged by the results and feedback from our NFT business.”
“Our plan is to incorporate game content into our service and to leverage the development and operational expertise we have amassed in our existing businesses to explore the potential of earnings structures, breadth of play, and NFT ownership experiences in the NFT business.”
Some of the initiatives they intend to take include the establishment of “regulatory clarity and guidelines for blockchain games,” the launch of a new IP and NFT brand, “issuing, managing and investing our own tokens,” expanding to countries where there is wide cryptocurrency adoption and more.
Square Enix will also look to invest into what they describe as “Key areas,” which include Animoca Brands and The Sandbox for blockchain and Ubitus for cloud gaming. The Tokyo-based company is also open for various other “potential global investments.”