Square Enix has announced its new medium-term business plan, strengthening its blockchain pivot according to the documents presented. The company will continue to invest in key blockchain companies, including Animoca Brands and The Sandbox, and will also consider other investments in the region. Square Enix recently sold its Western Studios for $300 million, but reportedly won’t use the funds to pursue these new Web3 investments.
Square Enix Structures Blockchain Strategy
Square Enix, the Japanese gaming company, seems determined to include blockchain and play-to-earn (P2E) as part of its commerce and monetization agenda going forward. In its recent earnings call, the company disclosed plans for blockchain and gambling to win and the investments it will make in this area.
As part of its medium-term business strategy, the company said it has ventured into new areas, which means it will invest funds in new areas, including what it calls the “entertainment area”. blockchain”.
Additionally, Square Enix is taking other more concrete steps regarding its blockchain pivot. The company will seek to “establish regulatory clarity and guidelines for blockchain gaming,” including NFT zones and experiences. Square Enix is also considering issuing proprietary fungible tokens and supplementing them with games whose worldbuilding will be designed to include them. This hints at the creation of new IP addresses using blockchain, gambling to win and NFTs.
New investments and corporate structure
The company also announced new investments in companies already established in the web3 and metaverse space. The document mentions Animoca Brands, a company with a large portfolio of blockchain gaming investments, and The Sandbox, one of the first experiments launched using Web3 and Metaverse.
Square Enix is one of the few companies that has made an effort to include these technologies in its business model in a structured way. Other similar developers like Ubisoft and Konami have also started to dabble in the space, but arguably without such a defined approach.
Earlier this month, the company sold part of its Western studios and operations to Embracer Group for $300 million, and said the transaction was important to enable “the launch of new businesses by continuing investments in areas such as as blockchain, AI and the cloud”. .” However, according to the company’s statements during the earnings call, the $300 million will go towards bolstering Square Enix’s core business. Analyst David Gibson reported that this new company will use different financing, distinct from these funds.
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