Gaming Veteran Suspends Blockchain Integration, Expressing Concerns Over Content Devaluation
Sega, the renowned gaming company behind iconic titles like Sonic the Hedgehog and Virtua Fighter, has announced a strategic retreat from its blockchain initiatives, citing concerns over the devaluation of its content. Co-chief operating officer Shuji Utsumi revealed that Sega currently has no plans to incorporate blockchain or cryptocurrency in its products, and it has suspended the development of its blockchain-based games.
While rivals Ubisoft and Square Enix have been exploring blockchain, non-fungible tokens (NFTs), and potential crypto integration, Sega has decided to take a different approach. Utsumi expressed his dissatisfaction with the current state of play-to-earn games, referring to them as “boring“. He questioned the purpose of games if they fail to deliver an enjoyable experience for players. Sega is now adopting a wait-and-see approach to assess whether blockchain products in gaming will truly gain traction.
Sega’s foray into blockchain exploration began last year, and in December 2021, the company even trademarked “Sega NFT” in Japan during the peak of the crypto markets. One notable collaboration took place in November, when Sega reportedly partnered with Japanese studio double jump.tokyo to develop a blockchain-powered card game on the Oasys platform. However, it remains unclear if this game will continue as planned, as Sega has not provided an immediate response regarding its status.
While blockchain technology has been touted as a potential game-changer in the gaming industry, enabling ownership and peer-to-peer trading of in-game assets, not everyone is convinced of its merits just yet. Concerns persist about over-commercialization, the prevalence of “pay-to-win” environments, artificial scarcity, technical challenges, poor design choices, and limited accessibility to gated content.
Sega’s decision to step back from its blockchain initiatives underscores the challenges faced by traditional gaming companies in navigating this emerging space. The company’s hesitation reflects the cautious approach taken by some industry players, who are keen to observe the market’s development and address the existing shortcomings before fully embracing blockchain integration.
As the gaming and blockchain industries continue to evolve, it remains to be seen how Sega’s decision will impact the overall adoption of blockchain in gaming. The industry will be closely watching the trajectory of blockchain products and the resolution of existing concerns to determine their long-term viability and potential to revolutionize the gaming experience.
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Written by Agbo Obinnaya
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