In its latest financial results briefing, Square Enix has outlined a plan for the future based heavily on controversial technologies.
This change in focus comes hot on the heels of the surprising $300 million deal announced on May 2, which saw the publisher sell several of its non-Japanese studios and IPs to Embracer Group.
While a reference to investing in fields like blockchain, AI and the cloud were included in the Embracer deal’s announcement, we now have a much clearer picture of what that practically entails for Square Enix.
Square Enix Outlines NFT and Blockchain Vision for Future
First of all, the investments in the technologies listed above, in addition to NFTs, represent a concerted effort by the publisher to “take on new domains”, the second of three business strategies designed to help Square Enix achieve its medium-term earnings targets.
Going into further detail, the briefing cites the publisher’s recent creation of a “Blockchain Entertainment Business Division” in February this year and the completion of season one of the card battle game Shi‐San‐Sei Million Arthur as positive steps it’s already taken in this area.
“Encouraged by the results and feedback from our NFT business, we have decided to produce a second season.” says the publisher, explaining: “Our plan is to incorporate game content into our service and to leverage the development and operational expertise we have amassed in our existing businesses to explore the potential of earnings structures, breadth of play, and NFT ownership experiences in the NFT business.”
click to enlargeSquare Enix then lists the practical steps it plans to take to achieve this, which include obtaining “regulatory clarity and guidelines for blockchain games” and “launching a new NFT brand and IP”.
The initiatives won’t be limited to Japan either, with the publisher outlining plans to establish game and service publishing businesses in “countries with wide cryptocurrency adoption”.
Square Enix also seemingly plans to invest more money into Hong Kong-based game software and venture capital company Animoca Brands, the current owner of mobile game The Sandbox, which is based on blockchain and allows users to buy plots of virtual land.
Current owners of some of The Sandbox’s virtual land include rapper Snoop Dogg, along with DJs Richie Hawtin and Deadmau5.
The publisher is also planning to invest in cloud gaming solutions company Ubitus and wants to expand its list of investments to include similar companies across the globe.
As of right now, Square Enix is seemingly still assessing the financial impact of the Embracer Group deal and evaluating what kind of windfall can be expected as a return on its new investments, listing its financial forecasts for the year ending in March 2023 as pending.
It also adds: “We will disclose our forecasts as soon as we can formulate
reasonable estimates.”
Make sure to follow us for more on this deal and updates to Square Enix games like Final Fantasy.
For more articles like this, take a look at our Final Fantasy and Gaming News page.