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- 1 Square Enix is known for franchises like Dragon Quest, Final Fantasy and more.
- 2 Current company president is very vocal about non-fungible tokens.
Gaming industry is going through changes as new tech advancements are frequently making their way into the market. However, the community has not yet accepted blockchain technology as a part of their tribe. Traditional gamers have already opposed this integration in the past. A recent letter released by Square Enix, a multinational entertainment conglomerate, points towards the same.
Company Reshaping The Management
The company announced they will replace their current president, Yosuke Matsude, in the forthcoming months. Takashi Kiryu will be stepping up to take the new position. However, the firm has not yet confirmed the official date of replacement. The move comes as a part of organizational restructuring according to the letter. They want to deliver a greater entertainment opportunity to their consumers.
Yosuke believes highly in technologies including blockchain, 5G, cloud and more as they all fall under the metaverse umbrella. Moreover, he highlighted NFTs and virtual spaces in a company letter during January 2022. He thinks that non-fungible tokens will gain a massive traction upon entering the mainstream and called 2021 “NFT: Year One” considering the market market boom in the year. Moreover he revealed that Square Enix is emphasizing on cloud storage to scale their content distribution.
Non-fungible token market plunged last year. A few events including FTX cratering and Terra USD collapse before that gave a push to crypto winter. Considering NFTs are seen as cousin sisters of cryptocurrencies investors started fleeing the market. People’s fading trust led the cryptosphere as well as associated industries to fall massively throughout the year.
These tokens are often linked to carbon emissions owing to their minting process on the blockchain. Ethereum, the second-largest blockchain shifted their operations from proof-of-work consensus mechanism to proof-of-stake. Data shows that carbon footprints from their network have declined by over 99%. We may consider this a plus one for the NFT sector considering ETH ecosystem accounts for a lion’s share in the space.
Still, the market has not yet made it to the mainstream due to the gamer backlash in the past. A few companies like Sega and Ubisoft have experimented integrating NFTs into their games, but failed considering the respective communities went bananas over organizations’ initiatives.
Square Enix’s announcement highlights the fact that the move is a part of reshaping the company. But there is a possibility of a hidden fear regarding a community backlash considering Yosuke Matsude is one bullish person in context to NFTs. Moreover, several use cases associated with these tokens have emerged in various sectors including music, logistics, healthcare and more.
Blockchain technology may not be a first choice for the gaming community but it surely is a preferred solution for industry titans like IBM, Microsoft and more.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
