Video game publisher Square Enix plans to release more projects driven by NFTs. Including encrypted video games.
It recently released a series of Ethereum-based NFT trading cards in Japan, which have been sold out.
Traditional video game publishers have begun to embrace NFT and encrypted games. EA (Electronic Arts) and Ubisoft announced their intentions. Today, Japanese publisher Square Enix, which owns IP such as Final Fantasy, Dragon Quest, and Tomb Raider, has also joined the ranks.
In a financial briefing covering the six-month period ending September 30, Square Enix described plans to further explore the NFT field by providing collectibles and blockchain-based video games.
Square Enix recently entered the NFT market through a trial run with the developer Double Jump.Tokyo/MCH+. Square Enix issues NFT digital transaction cards based on the video game and animation franchise “Shi-San-Sei Million Arthur” in Japan. These trading cards are minted on the Ethereum Layer2 solution Immutable X.
According to a report from Square Enix, these NFT cards were issued on October 14th and sold out. Square Enix plans to increase secondary market trading support through LVC, and then explore other initiatives around NFT. It is reported that LVC is a market created by Yahoo Japan and a subsidiary of the popular messaging application Line.
The report states, “We have realized that NFTs have a high affinity for our assets. The proof-of-concept phase has ended and will transition to the full commercialization phase.”
According to data from DappRadar, the NFT market broke out at the beginning of the year and only accelerated recently. The transaction volume in the third quarter alone reached 10.67 billion U.S. dollars.
Square Enix writes that it is now “considering a major move into blockchain gaming” and mentions the “changing environment” of digital entertainment, including “an increasingly diverse profile/incentive for game participants” .
According to the report, the game is expanding from a centralized to a decentralized one. “In addition to the kind of content creation we have traditionally engaged in, we will also focus on blockchain games based on the token economy as a form of decentralized content.”
The Ethereum-based game Axie Infinity has exploded in the summer and has so far generated more than $2.8 billion worth of transactions. After that, traditional game publishers used their latest financial reports to show their interest or plans in the encryption field.
Ubisoft has set foot in the NFT field and provides support to crypto developers. The company recently stated that after investing in Animoca Brands, it will make its own NFT game. On Wednesday, Electronic Arts CEO Andrew Wilson stated on the latest earnings call that he believes that NFT and the Play-to-Earn model are “an important part of the future of our industry,” although he warned that “now It’s too early.”
The crypto game industry has also recently issued a series of major financing announcements. Among them, NFT game start-up Mythical Games announced this week to raise 150 million US dollars. Andreessen Horowitz (a16z) led the investment. Investors included 32 Equity, the investment arm of the National Football League (NFL), and NBA star Michael Jordan (Michael Jordan).
Earlier this week, The Sandbox, a meta-universe game owned by Animoca Brands, raised US$93 million. In addition, crypto exchanges FTX, Solana Ventures and Lightspeed Venture Partners announced the establishment of a $100 million co-investment fund for Solana-based games.