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Japanese Gaming Giant Sega to Pull Support From ‘Boring’ Blockchain Games


Sega, one of the biggest game developers in Japan, has recently announced changes regarding its blockchain and Web3 gaming policy. The company announced it would not involve its largest franchises in blockchain initiatives, avoiding a possible devaluation of its intellectual properties (IPs), shelving in-house developed games and developments from third parties.

Sega Changes Its Blockchain Gaming Strategy

Sega, the Japanese game development and publishing company, once a supporter of blockchain games, is now withdrawing its support for initiatives of this kind. In a recent interview with Bloomberg, co-Chief Operating Officer Shuji Utsumi stated that the company was pulling the plug on games using this technology.

Furthermore, Utsumi also declared that Sega would not license its most prominent intellectual properties (IPs) to third parties involved in these kinds of games to avoid “devaluing” its content. However, Utsumi acknowledged that lesser franchises like Three Kingdoms and Virtua Fighter could be lent to be used in non-fungible token (NFT) projects.

Utsumi’s statements are a departure from the former stance that the company had on blockchain games, being involved in several projects as a developer and licensing its IPs to third parties. On April 2022, Sega hinted at including NFT and blockchain elements as part of its “super game” concept, contemplating investing more than $800 million in this initiative.

Also, in October, Sega announced the launch of its first licensed blockchain game, using its Sangokushi Taisen franchise and being built using Oasys technology, a gaming-oriented blockchain project.

Blockchain Games Are ‘Boring’

Utsumi explained his position on blockchain games and the reasons behind the company’s change of heart. He stated:

The action in play-to-earn games is boring. What’s the point if games are no fun? We’re looking into whether this technology is really going to take off in this industry, after all.

However, Utsumi stated Sega has not closed the door on including blockchain elements in its games when the technology matures. He declared that the company “should not ever underestimate” blockchain advocates and their proposals for the gaming space, even if they “sound a bit extreme.”

In contrast, Square Enix, another Japanese gaming company known for supporting the inclusion of blockchain and NTF elements in AAA games, announced in January that it would deepen its blockchain push, revealing it had multiple blockchain games based on original IPs under development.

What do you think about Sega’s new blockchain game policy? Tell us in the comments section below.

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