According to papers, Square Enix has unveiled a new medium-term business plan that intensifies its blockchain focus. The business will continue to invest in significant blockchain startups such as Animoca Brands and The Sandbox and will evaluate further opportunities in the field. Square Enix recently sold Western Studios for $300 million, but the cash will not be used for these new Web3 ventures.
Square Enix’s blockchain approach is organized.
Square Enix, a Japanese gaming firm, appears committed to using blockchain and play-to-earn (P2E) as part of its future business and monetization strategy. The firm outlined its goals for blockchain and play-to-earn and the investments it intends to make in its most recent earnings report.
According to the corporation, as part of its medium-term business plan, it is adding new sectors, implying that it would spend cash in new areas, including the “blockchain entertainment” field.
In addition, Square Enix is taking more tangible moves toward its blockchain shift. The startup plans to “offer regulatory clarification and direction for blockchain games,” including NFT zones and experiences. Square Enix also intends to issue unique fungible tokens and augment them with games that feature world-building matched with those tokens. This suggests that blockchain, play-to-earn, and NFTs will be used to create new IPs.
New investments and organizational changes
In addition, the corporation announced fresh investments in existing Web3 and Metaverse startups. The paper highlights Animoca Brands, a firm with a vast portfolio of blockchain gaming investments, and The Sandbox, one of the first experiences published using Web3 and Metaverse.
Square Enix is one of the few firms that structurally integrated these technologies into its business strategy. Like Ubisoft and Konami, other comparable studios have also begun to experiment in this area, but without such a precise concentration.
Earlier this month, the corporation sold a portion of its Western studios and operations to Embracer Group for $300 million, citing the need to allow the launch of new companies with investments in areas as blockchain, AI and cloud. However, during the conference call, the firm stated that the $300 million would be used to enhance Square Enix’s core business. According to analyst David Gibson, this new business will utilize monies other than these funds.
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