Square Enix has doubled down on NFT Talk and has several blockchain projects in development

Square Enix president Yosuke Matsuda made waves last year by revealing the company’s push toward blockchain and NFT technology — a stance that hasn’t gone down well with fans in the months since.

Surprisingly, Matsuda has once again used his “New Year’s Letter from the President” to plug his and Square Enix’s enthusiasm for all things Web 3.0, even going so far as to suggest that the recent volatility and uncertainty in the market will be a boon to their future plans.

You can read the full address here, but there are a couple of key quotes that really paint a picture of what the company’s stance on NFTs and blockchain in gaming is, starting with Matsuda’s belief that regulations tightened globally as well as government support in Japan will help reduce confusion and normalize the technology in the public eye.

“In the wake of this development, we hear rumblings from some countries about early steps to regulate such businesses more strictly. In Japan, meanwhile, the drive to encourage such businesses has gained momentum, led by the government. In June 2022, the Japanese Cabinet signed a plan called “Priority Policy Program for Realizing a Digital Society”, which includes formulations regarding the creation of an environment to promote the Web 3.0 concept, including the use of NFTs based on blockchain technology. Japan’s Digital Agency also launched a Web 3.0 Study Group.

New technologies and frameworks lead to innovation, but they also create considerable confusion. After riding out such societal tides, some such technologies and frameworks gradually become part of people’s lives, eventually giving rise to new businesses and growth. After the excitement and excitement that surrounded NFTs and the metaverse in 2021, 2022 was a year of great volatility in the blockchain-related space. But if this turns out to have been a step in a process leading to the creation of rules and a more transparent business environment, it will definitely have been for the best for the growth of blockchain entertainment.”

A big Final Fantasy-related announcement is apparently coming soon

Matsuda also goes on to say that the aggressive focus on monetization of NFTs and blockchain in games will take a backseat to how the technology can provide a “means to an end” after a year where the ass has pretty well fallen out monetarily, revealing that the company has even more blockchain-based projects underway than we know about today.

“Our group has several blockchain games based on original IPs in development, some of which we announced last year, and we are making preparations that will enable us to reveal even more titles this year. We are also engaged in global sourcing from an investment perspective and will continue to take stakes in promising businesses whether we find them in Japan or abroad.Blockchain has been an object of excitement and a source of uneasiness, but with that in the rearview mirror, we hope that blockchain games will transition to a new growth stage in 2023.”

Most recently, hype for a new Parasite Eve project titled “Symbiogenesis” soured when it was revealed to be an NFT-based collectible art experience, and Square Enix also began selling more expensive “Digital Plus” versions of its popular Final Fantasy Bring Arts action figures which comes with blockchain-based certificates of authenticity.

What is made clear in this letter, and doubly so given the total lack of mention of some of their major 2023/24 game releases such as Final Fantasy XVI and Final Fantasy VII Rebirth, is that Square Enix sees these initiatives as a key component of its strategy going forward. Time will tell if it proves financially fruitful for the company, but at this stage it will still be hard for fans of their video games to see how any of this will benefit them in the short or long term.