A representative of the Sega corporation has announced that the company is pulling away from NFTs and blockchain technology in its games, despite the company's previous enthusiasm for the idea. While Sega had once been among the most enthusiastic supporters of NFTs in video games, the ongoing global collapse of the crypto industry has prompted it to reconsider.
The concept of NFTs, part of the broader cryptocurrency craze, has generated a lot of excitement among corporations and finance enthusiasts in recent years, including many companies in the video game industry. Several major gaming corporations have announced their intention to incorporate NFTs or similar technology into their upcoming products, including plans by Sony to rent NFTs to PS5 players. Sega was initially among the companies adopting this trend, but this has recently changed.
In a statement given to Bloomberg, Sega co-Chief Operating Officer Shuji Utsumi announced that the company is backing off on its previous plans to incorporate Web 3.0 content, including NFTs and blockchain technology, into its games. Iconic Sega franchises like Sonic the Hedgehog and Yakuza will not see any NFT integration in future installments, and the company will not be developing any new games with Web 3.0 features either. This decision was apparently made to avoid devaluing Sega's beloved properties in the eyes of fans, and was likely informed by the negative public response to other companies introducing NFTs into franchises like Final Fantasy.
Utsumi's remarks went on to clarify that a handful of lesser-known Sega franchises may still allow third party platforms to introduce NFTs into future installments, as the company is still "looking into whether this technology is really going to take off in this industry." Despite this tepid endorsement, it seems that the attitude at Sega has shifted decisively against NFTs, seemingly in recognition of a long-held skepticism of NFTs among video game fans. In his statement, Utsumi seemed to echo players' disdain for the Web 3.0 model, saying "The action in play-to-earn games is boring. What’s the point if games are no fun?"
While it appears that Sega is not ready to give up on NFTs in their entirety, this announcement seems to indicate a clear change of strategy at the company. As fans remain divided on the upcoming Yakuza spin-off as well as other Sega projects, it's possible that the company is seeking to earn some goodwill and boost public confidence in its ability to make quality games. Given the dire state of the crypto industry and gamers' widespread antipathy toward these dubious technologies, it is likely that Sega's announcement will be well-received.
Source: Bloomberg