A shift in direction
Sega, the giant video game company known for franchises such as Sonic the Hedgehog and Yakuza, is rethinking its Web3 strategy. The company has announced that it will no longer be licensing its key assets to third-party blockchain gaming projects. This move is reportedly being made to prevent content devaluation.
The bear market?
This development marks a significant shift for Sega, which has historically championed blockchain technology as a means to enhance the appeal of its titles. It is speculated that the company is rethinking its Web3 strategy due to the current state of the NFT (non-fungible token) market.
Play-to-earn is boring
Sega’s initial announcement in 2021 of its intention to join the booming NFT community met significant backlash from the gaming community, who saw crypto technology as environmentally detrimental.
Sega’s co-COO, Shuji Utsumi, has also expressed his skepticism of blockchain’s current application in gaming. In an interview with Bloomberg News, Utsumi remarked, “The action in play-to-earn games is boring. What’s the point if games are no fun?”
A more moderate approach
While taking a more cautious approach, Sega still plans to offer its lesser-known franchises to various blockchain games set to be announced later this year. Sega also intends to continue investing hundreds of millions of yen in related projects. Utsumi pointed out that the technology still offers unique advantages, such as facilitating the transfer of characters and items between different games.
The future of Web3
In the long term, Sega remains open to greater involvement as blockchain technology matures. Utsumi, comparing the pioneering blockchain advocates to the first penguin taking the plunge, stated:
“For the majority of people in the video game industry, what blockchain advocates say may sound a bit extreme, but that’s how the first penguin has always been. We should never underestimate them.”
Sega’s decision to rethink its Web3 strategy is a significant development. It remains to be seen how the company’s plans will evolve in the future, but it is clear that Sega is taking a more cautious approach to blockchain technology.
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