Sega exec ices blockchain gaming plans, calls play-to-earn ‘boring’

Sega trademarked the concept of its own NFTs at the peak of the last bull market, but now it’s returning to the sidelines

article-image

IB Photography/Shutterstock modified by Blockworks

share

Gaming veteran Sega has announced a strategic retreat from its blockchain initiatives to avoid what it’s calling a devaluation of its content.

The Tokyo-headquartered studio, famous for titles including Sonic the Hedgehog and Virtua Fighter, won’t be incorporating blockchain or crypto in its products any time soon, according to co-chief operating officer Shuji Utsumi. 

Sega is also suspending plans to develop its blockchain-based games, per Utsumi. Many had anticipated the company would follow rivals Ubisoft and Square Enix in exploring blockchain, NFTs and potentially crypto.

“The action in play-to-earn games is boring,” Utsumi told Bloomberg. “What’s the point if games are no fun?” 

The executive said Sega was now waiting to see whether blockchain products were “really going to take off” within gaming. 

Read more: The death of play-to-earn gaming

Sega began exploring blockchain for use in its games and franchises last year and even trademarked “Sega NFT” in Japan in December 2021, around the same time crypto markets peaked.

One Sega foray into blockchain gaming came last November when it reportedly teamed with Japanese studio double jump.tokyo for the development of a blockchain-powered card game on Oasys. 

It is unclear at this stage whether the game will proceed. Sega did not immediately respond to Blockworks’ request for comment.

While proponents say blockchain has the potential to revolutionize gaming by enabling ownership and peer-to-peer trade of in-game assets, not everyone is sold just yet.

Concerns include over-commercialization and “pay-to-win” environments, artificial scarcity, technical issues and poor design, as well as limited accessibility of gated content.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid

article-image

Ethereum’s Dencun upgrade will enable Uniswap v4 to optimize smart contracts for complex functionality