Square Enix (SE), popular Japanese game developer of, among others, the Final Fantasy and Tomb Raider series, has indicated in its Q1 earnings report that they will expand their services with non-fungible tokens (NFTs) at their games. This is part of their medium-term strategy for 2022.
Popularity of non-fungible tokens in games
The popularity of Web3 and NFT gaming has risen sharply over the past few years, even despite the declining prices of most cryptocurrencies. From data from DappRader turns out there were 1 million active gamers Saturday. This is about the same as on January 1 this year.
However, gamers don’t buy NFTs as much as they used to. The volume of NFT gaming items fell 88% from $70 million in January to $8.7 million last Saturday.
Despite this, SE will continue to roll out NFT games. They had already started testing NFTs in the game Shi-San-Sei Million Arthur in February of this year. If this goes well, SE is willing to expand this to other games.
SE comes with its own cryptocurrency?
In addition, the developer indicates that he also wants to set up an entity that ‘issuing, managing and investing our own tokens‘ takes on. This may mean that they will start with their own token system in the future. These tokens could then potentially be used in the new games they release.
SE has $3 billion in assets under management, according to the earnings report and has recently acquired a number of subsidiaries sell for $300 million† Game franchises they have sold include: Deus Ex† Thief† Legacy of Kain and Tomb Raider.
Web3 gaming and metaverse
Besides developing an NFT service behind the scenes, SE is also active in the Web3 gaming and metaverse sector. This is evident from a collaboration that the developer has entered into with Animoca Brands, a venture capital company active in the Web3 and metaverse sector. A collaboration between these two parties could therefore indicate that SE is interested in this ecosystem. This could potentially provide interesting new games in the future.