YGG Japan Secures $2.95 Million in Funding from Square Enix, SEGA, and Other Web3 Firms
Square Enix and SEGA, two of the biggest Japanese gaming firms, have taken a stake in YGG Japan, a subDAO of Yield Guild Games that aims to lead the "play-and-earn" movement in Asia.
Square Enix and SEGA invest in YGG Japan to foster Web3 game developments
YGG Japan, a subsidiary of Yield Guild Games (YGG), has completed a $2.95 million private funding round with participation from 18 companies, including Square Enix, SEGA, and Gate.io Labs. With this round of funding, YGG Japan has raised a cumulative total of approximately $5.75 million.
Per an official statement from YGG Japan, a high entry cost is often required for many Japanese gamers, who are Web3 novices, to participate in NFT games. There's also a slew of misleading information in the market, which could lead to newbies falling for scams.
To resolve these, YGG Japan will be using the fresh fund acquired to promote the development of tools and construct a conducive environment for mass adoption. This includes the use of "GabeeTown," its native Web3 gaming hub, for players to access genuine crypto games. The team is also looking to expand the platform's functionality to produce a league of professional gamers in the blockchain space.
On top of that, YGG Japan will hire skilled personnel to expand blockchain games in Japan, with a focus on product marketers, ad operators, engineers, product managers, token economists, BizDev, and PR officers. The team will continue developing products and services that remove the entry barriers to blockchain games.
"Games using Web3 technology have the appeal of offering an unprecedented gaming experience by recording the digital assets, activities, and achievements in a wallet," said Keisuke Hata, General Manager of the Blockchain Entertainment Business Division at Square Enix.
"However, player onboarding often requires complex steps, and the entry barrier to play is high, which makes marketing and promotion a challenge. We believe that this is an important partnership, including YGG Japan and YGG Group's extensive know-how and design philosophy in mass adoption."
"We are delighted to have the opportunity to support YGG Japan. The gaming industry is rapidly evolving in response to technological advancements and changes in the ecosystem," said Shuji Utsumi, Vice President of SEGA Corporation. "YGG Japan will be supporting the industry's mega-trends that we have been focusing on: blockchain games and Web3 movement."
