Sega Suspends Blockchain Gaming Initiatives, Game Over?

Japanese video game powerhouse Sega plans to withhold its biggest game franchises from third-party blockchain projects, as it cools interests in blockchain gaming, a Bloomberg report has revealed.

This move comes after the underwhelming performance of non-fungible tokens (NFTs) and the waning excitement around blockchain-based games in recent months.

Sega Rolls Back Blockchain Gaming Plans, COO Questions Technology 

In an interview with Bloomberg, Sega’s co-Chief Operating Officer Shuji Utsumi revealed that the company would not be pursuing its blockchain gaming plans, at least for now. Healso mentioned that the firm will be withholding its biggest franchises, like Sonic The Hedgehog, from third-party blockchain gaming projects to prevent content devaluation.

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The co-COO went further by questioning the entertainment value of blockchain-based games, calling them boring. “The action in play-to-earn games is boring. What’s the point if games are no fun?” Utsumi said.

Sega’s interest in the cryptocurrency industry goes as far back as 2021 during the NFT frenzy. At the time, the move drew widespread criticism from the online community who view crypto technology as unfriendly to the environment.

In spite of this, the gaming company announced a partnership with Double Jump to start selling NFT digital content in 2021. More than a year later, Sega – along with competitor firms like Square Enix, Bandai Namco, and Ubisoft – became initial validators for the gaming-focused Oasys blockchain.

However, this latest move represents a shift in Sega’s stance on blockchain gaming technology and perhaps the entire Web3 industry. 

Sega To Offer Lesser-Known Franchises To Related Projects

It is worth noting that Sega still plans to offer its less popular franchises, like Three King and Virtua Fighter, to several blockchain-gaming projects. According to the Bloomberg report, the firm will continue to invest up to hundreds of millions of Yen in blockchain projects. 

“The technology remains useful, for instance by making it possible to move characters and items between different games,”  Sega’s Shuji Utsumi said. This suggests that the game company is open to blockchain endeavors in the future.

Utsumi alluded to this in his interview, saying that Sega will continue to monitor the advancements in blockchain gaming while avoiding the subject of employing the technology in its “super game” initiative, a collection of high-end games set for rollout in 2026.

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Unfortunately, Sega is not the only gaming company that is scaling back on its involvement with blockchain games. Competitors, like Ubisoft, have also rolled back their investment in NFT games following skepticism from the gaming community.