Sega, the Japanese gaming giant behind Sonic The Hedgehog and Yakuza, has recently announced that it is suspending its blockchain gaming initiatives, citing the crypto market crash and the lack of fun gameplay as the main reasons. This is a surprising move from a company that was once seen as one of the most enthusiastic supporters of blockchain technology in the gaming industry.
Blockchain gaming is a genre of games that uses decentralized ledger technology to create digital assets, such as non-fungible tokens (NFTs), that can be owned, traded, and used by players across different platforms. Some of the most popular blockchain games, such as Axie Infinity and CryptoKitties, have attracted millions of players and generated billions of dollars in revenue.
However, blockchain gaming also faces many challenges and criticisms, such as environmental concerns, regulatory uncertainty, technical complexity, and user experience issues. Moreover, many gamers are skeptical about the value and quality of blockchain games, arguing that they are more focused on speculation than entertainment.
Sega was one of the first major game publishers to embrace blockchain gaming, announcing in 2021 that it would partner with external developers to create NFTs based on its iconic franchises. It also revealed plans to develop its own blockchain games internally, as well as to explore Web 3.0 technology for its future online multiplayer titles.
Sega Shuts Down All Projects in this Area
However, according to Sega’s co-chief operating officer Shuji Utsumi, the company has decided to pull back from these ambitious projects, at least for now.
Utsumi added that Sega was still open to using blockchain technology for some of its lesser-known series, such as Three Kingdoms and Virtua Fighter, which it plans to offer for NFTs later this year. He also said that Sega would continue to invest in related projects, but only in small amounts.
He expressed doubt about the viability and adoption of Web 3.0 technology in the gaming industry, saying that Sega was still looking into whether it would really take off.
Sega’s change of stance reflects a broader cooling of enthusiasm for blockchain gaming among game developers and players alike. Other game publishers, such as Ubisoft and Square Enix, have also faced backlash and disappointment for their NFT games, which have failed to attract significant interest or engagement.
While blockchain gaming still has the potential to revolutionize the gaming industry, it seems that Sega and other game companies will need to overcome many hurdles and find better ways to deliver fun and meaningful experiences to gamers.
