According to documents, Square Enix announced its mid-term business plan. This will strengthen its blockchain pivot. The company will continue investing in blockchain companies such as Animoca Brands, The Sandbox, and other areas. Square Enix recently sold its Western studios to a company for $300 million. However, the funds will not be used to make these Web3 investments.
Square Enix Structures Blockchain Strategy
Square Enix, a Japanese gaming company seems determined to include blockchain technology and play-to earn (P2E), in its business and future monetization plans. The company revealed its plans for blockchain and play-to earnn in its earnings call and the investments it intends to make in this area.
The company announced that it was taking on new domains as part of its midterm business strategy. This means it will be investing funds in new fields, such as the “blockchain entertainment domain.”
Square Enix also plans to take other concrete steps in relation to its blockchain pivot. Square Enix will work to “establish regulatory clarification and guidelines for Blockchain games,” which includes NFT zones and experiences. Square Enix may also consider issuing fungible tokens that are exclusive to the company and then complementing them with games whose world-building will include them. This suggests the possibility of creating new IPs through blockchain, play-to earn, and NFTs.
Business Structure and New Investments
The company announced new investments in established companies in the Web3 or metaverse space. The document mentions Animoca Brands which has a large portfolio of investments in blockchain gaming and The Sandbox which was one of the first experiences to be launched using Web3 or metaverse.
Square Enix is one company that has tried to incorporate these technologies into their business model in an organized way. Similar developers, such as Ubisoft or Konami, have also begun to explore the space, though perhaps without a clear approach.
The company sold part its Western studios and operations earlier this month for $300 million. According to statements made by the company during the earnings call, $300 million will be used to strengthen Square Enix’s core business. Analyst David Gibson reported this new business will be funded with different funds.
