It has been called the next big thing. Gaming studios and major companies getting into the blockchain and NFT world but for the most part that has yet to materialize. Gamers have been sharply divided with neither side wanting to yield an inch to the other when it comes to this idea. With gamers, their customers, so divided it is hard to get some of these companies to really fully embrace it and jump on board.
However, it has not prevented it...
Yesterday news broke that one major company was offloading several franchises and studios for $300 million USD to invest in blockchain gaming. While the name is not one that I am familiar with some of their franchises I am so who made the huge pivot?
Square Enix
Square Enix is the company behind some of the biggest gaming franchises like Final Fantasy, Dragon Quest, Kingdom Hearts, and the Tomb Raider series among others. While it may not be on par with Ubisoft it is no small fish itself. However in a business environment like we are in and costs starting to hinder the company they wanted to not only acquire some cash but also free up some of their expenses.
In the deal Square Enix is selling Tomb Raider, Deux Ex, Thief, and Legacy of Kain along with three developmental studios Eidos Interactive, Crystal Dynamics, and Square Enix Montreal to Embracer Group a company based in Sweden. Of the names listed in the sale Tomb Raider was a game I grew up playing and has sold over 88 million copies worldwide! Based on the information I have gathered Tomb Raider was the money maker of this group and the others were more or less paired with it to shed costs for Square Enix.
What I am anxiously awaiting is what path is Square Enix going to take in the blockchain space? Are they going to invest in a variety of gaming startups or are they going to choose to build one of these major franchises on the blockchain?! Will they be in the NFT market themselves or will they partner with a blockchain to create a marketplace for them? There are so many different options to choose from and so many directions that the company could go!
While I do not expect to hear anything in the immediate future this sets the company up long term. They have shed liabilities for cash and will be able to make plans accordingly. If the previous moves that they have made in the crypto space are any hint at what they plan to do there is some clarity. Crazy enough in 2020 they led a fundraising round for The Sandbox and a couple of months ago announced they planned to bring Dungeon Siege into The Sandbox's game world. While it is an interesting move I wonder if they will be hesitant to do it still with Ethereum 2.0 delayed once more so the transaction speed remains an issue.
Last year they also stated that they were going to launch its own NFT collectibles and NFT-powered games after a test run that was successful in Japan. With all of these different announcements what they plan to pivot to and really dive into is not yet clear. It will be interesting though to watch and see if their user base pushes back as much as Ubisoft's has. With this cash infusion though I am sure we will start to hear about some concrete plans sooner rather than later.
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
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