Square Enix Reaffirms Commitment to Blockchain Games, Despite Crypto Winters

The so-called “crypto winter” has cooled interest in the blockchain world over the past six months, but some are still excited about the technology. The latter group includes Square Enix’s president, Yosuke Matsuda, who once again used the company’s annual New Year’s letter to reaffirm his strong interest in crypto and blockchain’s role in gaming.

In the letter, Matsuda singled out “blockchain entertainment” as the company’s most focused area in 2023, noting that blockchain “won significant recognition as a field in 2022,” along with Web 3.0 as a concept. However, Matsuda also notes “volatility” in the crypto and NFT markets, including the surprise collapse of FTX, which was once considered one of the most promising players in the space.

Striking an optimistic note, Matsuda says that while the market was driven more by investors in 2021 due to skyrocketing crypto prices, the ongoing “turbulence” in the industry should prompt developers to view blockchain as a means to an end, rather than the end in itself. He also confirms that Square Enix has several blockchain games in development.

While it is likely that the current crypto winter will eventually end, consumer interest in NFT or blockchain-based games has been limited in the past, with even successful examples such as Axie Infinity failing to cross over into the mainstream. As such, even if the crypto bubble is re-inflated, traditional gaming companies like Square Enix have an uphill battle ahead of them.