Square Enix tells investors in its latest financial report that it still intends to “pursue investments in fields such as blockchain, AI, and cloud,” and aims to develop a “new NFT and IP brand.”
The publisher dove into NFTs with its Million Arthur card battle franchise, introducing blockchain-based cards for the first season of the mobile game Shi-San-Sei Million Arthur, which concluded in March.
“Encouraged by the results and feedback from our NFT business, we have decided to produce a second season,” Square Enix says in its earnings presentation. “Our plan is to incorporate gaming content into our service and leverage the development and operational experience we’ve built up in our existing businesses to explore the potential of NFT’s earnings structures, breadth of gameplay and ownership experiences in the business.” of NFT”.
In the “medium term,” Square Enix aims to build a blockchain entertainment and game development initiative. That includes extensive research into the regulatory and economic factors surrounding blockchain gaming, as well as an effort with “world building” and “story-focused creatives” to launch “a new NFT and IP brand.” “.
Square Enix has made its interest in NFTs known for some time, including in a New Year’s message from President Yosuke Matsuda. The publisher said its recent sale of Crystal Dynamics and Eidos-Montreal to Embracer Group would enable “new business launches by advancing investments in fields including blockchain, AI and cloud.”
The company reiterated the same message in today’s financial report, arguing that the rise of streaming “may accelerate the transition from traditional record sales to digital sales, and business models may change through the offering of subscription services. “. With more gamers potentially playing without a console, especially in emerging markets, Square Enix believes “there is likely to be a demand for gaming experiences that are only possible in a cloud environment and for cloud-native game development.” .
With all that in mind, Square Enix “has identified AI, cloud, and blockchain gaming as priority investment areas in its business strategy and will engage in aggressive research and development and investment efforts in these areas.”
In the short term, the publisher aims to “prioritize stable recurring revenue expansion,” including through more well-established gaming ventures such as mobile games, browser games, and MMO subscriptions. As part of today’s report, Square Enix cited Final Fantasy 14 as one of the top contributors to its gaming business.
Square Enix has plans for a new IPAnd not just on the blockchain.