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Gaming Giant Square Enix Sells Major Franchises to Fund Blockchain Initiatives

  • Square Enix will channel money from the sale of major gaming franchises to continue investing in blockchain-based games
  • The company has played a role in the blockchain gaming sector since 2018 and is now entering a “full commercialization phase” after a successful NFT proof-of-concept

Japanese gaming giant Square Enix has sold $300 million worth of intellectual property tied to major Tomb Raider and Deus Ex franchises – alongside a number of its foreign studios – in favor of funding its blockchain initiatives.

Swedish games maker Embracer Group, formerly THQ Nordic AB/Nordic Games, tapped into the treasure trove of assets including entire subsidiaries Eidos and Crystal Studios, and more than 50 titles including Thief.

The two subsidiaries had combined revenues of $170 million for the fiscal year ended March 2021 — up 21% — for profit of $3.85 million, according to Square Enix’s press release on Monday

The Embracer Group is known for its acquisitions. It is website has control of more than 850 franchises across 119 studios, with the popular titles Borderlands and Saints Row under its broad umbrella. The company disclosed net worth of $3.4 billion as of March 2021 and its market value is currently $7.46 billion.

Square Enix expressed a desire to align its overseas businesses with its Tokyo offerings “with the goal of maximizing global revenue from future titles launched by the group’s studios in Japan and abroad.”

However, the Shinjuku-headquartered company has been vague on blockchain, stating only that the deal “enables the creation of new businesses by driving investments in areas like blockchain, AI and the cloud.”

Square Enix is ​​planning a “full commercialization phase” backed by NFTs

Square Enix announced its intention to unlock the potential benefits of blockchain in letters to shareholders four years ago. brag in May 2018 it would invest “aggressively” to take advantage of the technology.

In his 2019 New Year’s address, President Yosuke Matsuda said: written down Non-cryptocurrency blockchain applications had emerged from the crypto mania the year before.

Matsuda was referring to NFTs well before the recent surges in popularity associated with CryptoPunks and Bored Apes. CryptoKitties was the first NFT (Non-Fungible Token) project back then.

Two and a half years later, in November 2021, Square Enix detailed what it called a successful blockchain proof-of-concept.

The company had just launched a line of digital NFT cards called Shi-San-Sei Million Arthur. brand in partnership with third party NFT studio double The NFTs, deployed on the LINE blockchain, powered a free digital deck of cards mirroring “Magic: The Gathering” and “Hearthstone.”

“In addition to the type of content creation that we have traditionally engaged in, we will be focusing on blockchain games based on token economies as a form of decentralized content,” Square Enix said at the time.

Square Enix expressed a desire to make blockchain a pillar for the company moving forward by incorporating token economies into its games, despite secondary sales of “Shi-San-Sei Million Arthur” NFTs are not currently supported.

Source: Square Enix

The Latest Shi-San-Sei Million Arthur mint boosted the total number of NFTs distributed to 3,376, according to the game’s website. It is not clear how much revenue was generated.

Square Enix’s persistence in expanding its blockchain-powered offerings stands in stark contrast to a number of game studios that have rolled back the NFT craze in response to criticism, including STALKER 2. developer GSC game world, Team17and “FIFA” creators Electronic Arts.

executives out Nintendo, take two however, and Ubisoft (among others) have expressed hope for the future of NFTs in gaming – suggesting that crypto-native studios could face stiff competition going forward. The latter, however foray in NFT gaming was a resounding flop.

In any case, market reaction to the deal between Square Enix and Embracer Group was muted. Square Enix shares are trading evenly, while Embracer is up 1%, suggesting any upside to both companies will be felt down the road.

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The post Gaming Giant Square Enix Sells Large Franchises to Fund Blockchain Initiatives is not financial advice.

Source: Crypto News Austria

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