Square Enix Reveals Its Blockchain and non-fungible tokens (NFT) Strategy

<p>While the announcement is brief in its details, it demonstrates the company's interest in blockchain gaming.</p> <p>Significant Points to Ponder</p> <p>* Square Enix's CEO announced the company's strategy for non-financial tokens, blockchain-based games, and the Metaverse.</p> <p>* President Yosuke Matsuda dubbed 2021 "year one" for NFTs and suggested that as the technology becomes more prevalent, prices will correct.</p> <p>* According to the CEO, in 2022, blockchain will be a "significant strategic theme."</p> <p>Square Enix, a game developer, announced plans for blockchain and near-field communication (NFT) development on New Year's Day.</p> <p>NFTs and the Metaverse: A CEO's Perspective</p> <p>Square Enix announced its plans to develop blockchain, NFT, and Metaverse initiatives this weekend in a letter from company president Yosuke Matsuda on New Year's Day. Matsuda noted in the letter that last year, non-fungible tokens, or NFTs, drew considerable attention. Due to the rapidly growing user base of NFTs, he dubbed 2021 "year one."</p> <p>Matsuda acknowledged that NFTs have increased the liquidity of digital goods, but noted that NFT trading has become somewhat "overheated" and speculative in nature. Matsuda anticipates that as NFTs become more prevalent, price corrections will occur.</p> <p>Matsuda also brought up the Metaverse, the virtual reality trend that Facebook sparked in October. He expressed hope that as the Metaverse concept takes shape, it will "induce changes that have a more significant impact on Square Enix's business."</p> <p>This Year Will Begin the Implementation of a Blockchain Strategy</p> <p>Matsuda made no specific NFT or Metaverse product announcements. He did mention, however, that Square Enix developed a medium-term strategy in 2020 that would prioritise investments in artificial intelligence, cloud gaming, and blockchain games.</p> <p>He added that "starting in 2022, Square Enix will make decentralised blockchain games a major strategic theme."</p> <p>Matsuda explained