Japanese gaming firm Sega backs out of blockchain: Bloomberg
Japanese multinational video game firm Sega Corporation is withdrawing from blockchain-based games as play-to-earn games are “boring,” according to Shuji Utsumi, the company’s co-chief operating officer cited by Bloomberg on Friday.
See related article: Play-to-earn game developers pivot to engaging fans
Fast facts
- Utsumi reportedly said Sega will be withholding its biggest franchises from third-party blockchain gaming projects to stop any devaluation of its content. The company will also stop developing blockchain games.
- However, Sega plans to allow external partners to use characters from its Three Kingdoms and Virtua Fighter gaming franchises for non-fungible tokens (NFTs).
- Sega, best known for its Sonic the Hedgehog franchise, has had an on-and-off relationship with blockchain technology. Last year, the company vowed to withdraw its NFT plans after heavy backlash from fans.
- Gaming is often seen as an industry that can benefit from blockchain, partly due to the technology’s capability to potentially introduce an economic layer involving in-game items and assets that are transferable from one game to another.
- However, gamers have criticized the adoption of blockchain and NFT technology by game developers, including Sega, as strategic maneuvers primarily designed for profit maximization, or “cash grabs.”
- Hacks have been another reason why the application hasn’t taken off yet. Last year, Gala Games, an Ethereum-based play-to-earn gaming company, endured an apparent multi-billion attack on its native token GALA.
See related article: South Korea’s Ifland metaverse dives into play-to-earn
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Japanese gaming firm Sega backs out of blockchain: Bloomberg
Japanese multinational video game firm Sega Corporation is withdrawing from blockchain-based games as play-to-earn games are “boring,” according to Shuji Utsumi, the company’s co-chief operating officer cited by Bloomberg on Friday.
See related article: Play-to-earn game developers pivot to engaging fans
Fast facts
- Utsumi reportedly said Sega will be withholding its biggest franchises from third-party blockchain gaming projects to stop any devaluation of its content. The company will also stop developing blockchain games.
- However, Sega plans to allow external partners to use characters from its Three Kingdoms and Virtua Fighter gaming franchises for non-fungible tokens (NFTs).
- Sega, best known for its Sonic the Hedgehog franchise, has had an on-and-off relationship with blockchain technology. Last year, the company vowed to withdraw its NFT plans after heavy backlash from fans.
- Gaming is often seen as an industry that can benefit from blockchain, partly due to the technology’s capability to potentially introduce an economic layer involving in-game items and assets that are transferable from one game to another.
- However, gamers have criticized the adoption of blockchain and NFT technology by game developers, including Sega, as strategic maneuvers primarily designed for profit maximization, or “cash grabs.”
- Hacks have been another reason why the application hasn’t taken off yet. Last year, Gala Games, an Ethereum-based play-to-earn gaming company, endured an apparent multi-billion attack on its native token GALA.
See related article: South Korea’s Ifland metaverse dives into play-to-earn
Read More