Sega, the renowned Japanese gaming company, has made the decision to withdraw from the rapidly growing GameFi and blockchain gaming sector, citing concerns about the technology’s ability to deliver engaging and enjoyable gaming experiences. According to a recent Bloomberg report, Sega’s co-Chief Operating Officer, Shuji Utsumi, expressed the company’s apprehension and announced the cancellation of its plans to develop blockchain games.
We’re looking into whether this technology is really going to take off in this industry, after all. The action in play-to-earn games is boring. What’s the point if games are no fun?
Shuji Utsumi, Co-Chief Operating Officer, SEGA.
Sega’s decision comes as a surprise, considering its previous involvement and support for blockchain gaming. The company had previously announced its intention to withhold some of its well-known games and intellectual property (IP) from blockchain integration, but had partnered with Double Jump Tokyo, a leading blockchain gaming expert, to develop blockchain games based on its lesser-known IP.
The gaming giant’s cautious approach to blockchain gaming was evident from the beginning, as it stated that it would withdraw if the technology was perceived as merely a means of easy profit. Despite Sega’s withdrawal, it will still allow third-party developers to produce blockchain games, as part of its ongoing commitment to exploring new avenues in the gaming industry.
Sega’s move raises questions about the viability of blockchain gaming and its potential to revolutionize the gaming industry. While blockchain technology has shown promise in terms of decentralized ownership, secure transactions, and the creation of rare and tradable in-game assets known as non-fungible tokens (NFTs), Sega’s concerns highlight the importance of ensuring that blockchain games prioritize enjoyable gameplay experiences.
The contrast between Utsumi’s statements and its partnership with Double Jump Tokyo is striking. The company had previously announced its collaboration with Double Jump Tokyo to develop the PC-based trading card game Battle of Three Kingdoms, utilizing the Oasys blockchain. The project aimed to bring Sega’s popular Web2 hit, Sangokushi Taisen, into the Web3 realm, thus expanding the possibilities of blockchain gaming.
Sega’s withdrawal from GameFi and blockchain gaming, despite its investment in Asia -based crypto fund IVC participation in the IVS crypto conference, and its partnership with Double Jump Tokyo suggests a reevaluation of the industry’s potential. This decision could have broader implications, causing other game developers and investors to reconsider their involvement in the blockchain gaming space.