Published on: 31/10/2022

Square Enix to focus on blockchain gaming, global market

Square Enix, a multinational company best known for Final Fantasy, Dragon Quest, Star Ocean, and many other franchises, has released its report outlook for 2022, with company president Yosuke Matsuda emphasizing blockchain gaming and attracting a global market as the company’s primary focus.

According to Matsuda, unlike traditional games, which require players to play within the boundaries set by developers, blockchain games require players to exercise their own authority in creating and overseeing the game’s world.

The 57-year-old believes that the concept of decentralized games, combined with the proliferation of token economies, will lead to the development of previously unseen types of games.

Having said that, Matsuda thinks that blockchain gaming has the potential to produce novel forms of gaming content and represents a new business domain that Square Enix should address alongside traditional games.

“Some view the very concept of blockchain gaming with suspicion,” Matsuda said. “I believe that blockchain gaming has the potential to create new forms of gaming content and that it represents a new business domain worth our Group addressing alongside traditional games.”

Even though Square Enix has yet to incorporate blockchain gaming, this update indicates that it will happen eventually. In addition to that, Matsuda also emphasizes the significance of attracting a global market due to Japan’s aging population.

“Achieving major growth in the game industry is difficult now for companies that compete primarily in the Japanese market, given its graying demographics,” the report reads.

Reports have revealed that Japan has one of the highest percentages of elderly people in the world, last month, data also indicated that people over the age of 75 make up more than 15 percent of the country’s population, a record high.

“As such, it is critical for our business that we produce hit titles that speak to the global market, which offers greater scale in terms of both customers and sales volumes,” he says.

Matsuda goes on to explain that relying solely on the Japanese market is simply impractical considering the size and extent of modern, large-budget developing games.

“The Japanese market is no longer sufficient for achieving a level of earnings that enables us to recoup our development investment and generate a profit, and we, therefore, need to approach our development efforts based on the assumption that we have to succeed in the global market,” he writes.

Square Enix’s collaboration with Oasys

Square Enix previously made headlines when it announced a collaboration with Oasys, which regards itself as “an eco-friendly blockchain built for the gaming community, offering the best user experience with fast transactions and zero gas fees.”

Yosuke Saito, director of the Square Enix Blockchain Leisure Division, said, “Our shared enthusiasm for web3 gaming makes this a thrilling partnership for us and we sit up for gaining insights that may advance the creation of all-new gameplay experiences for players throughout the globe”.

The developer will act as a “validating node” on Oasys’ upcoming blockchain. This implies that the business will be in charge of keeping track of the platform’s blocks, storing a copy of the blockchain, and keeping the system secure. Square Enix is one of 21 major corporations that have signed up for Oasys, with Sega and Ubisoft also approving the service.

Square Enix announced earlier this year that it wished to develop “blockchain games and entertainment products.”

“From having enjoyable to incomes to contributing, all kinds of motivations will encourage individuals to have interaction with video games and join with each other. It’s blockchain-based tokens that can allow this,” Matsuda wrote in a new year’s letter in January.