The company plans to put the revenue from the recent sale of its subsidiary studios back into video games.
Updated 14:00 BST, June 7: This article has been updated for clarity and accuracy
Square Enix's President Yosuke Matsuda seems to be intent on moving away from blockchain technology, but the company has outlined that it plans to "promote [the] blockchain entertainment domain" amidst the "results and feedback from [its] NFT business."
As outlined in the financial report, Square Enix claims to be reinvesting the revenue from the recent sale of its subsidiary studios in Europe and North America back into its “core business". Meanwhile Embracer's acquisition of Crystal Dynamics, Eidos Montreal, Square Enix Montreal, Tomb Raider, Deus Ex, Thief, and more will apparently "enable the launch of new businesses by moving forward with investments in fields including blockchain, artificial intelligence, and the cloud."
President Yosuke Matsuda also told investors that Square Enix would be using the money made from the sale of its subsidiary studios to strengthen its primary business interests instead of speculating about the blockchain. “Rather than using the proceeds from the divestiture in new investment domains such as non-fungible tokens and the blockchain, we intend to use them primarily to fund our efforts to foster solid intellectual property and to enhance our development capabilities in our core digital entertainment segment,” the executive noted.
But the financial results point to the contrary as evident by a slide dedicated to promoting the technology and creating a "blockchain entertainment business division" while also implementing NFTs into games: "Encouraged by the results and feedback from our NFT business, we have decided to produce a second season.
"Our plan is to incorporate game content into our service and to leverage the development and operational expertise we have amassed in our existing businesses to explore the potential of earnings structures, breadth of play, and NFT ownership experiences in the NFT business."
As for Mastuda's own vision of Square Enix's future, he said that he plans to “focus on creating new titles that align with our strategy including ones that leverage new intellectual property.” Matsuda noted how “the Just Cause franchise will remain our intellectual property and we are at work developing a new title in the franchise.” The executive seems to have been referring to the upcoming Just Cause Mobile, a free-to-play shooter scheduled to be released at some point later this year.
Matsuda was asked by an investor if the sale of Crystal Dynamics, Eidos Montreal, and Square Enix Montreal meant that his company would be focusing on developing online titles for distribution in Europe and North America. “We will not be focusing exclusively on online titles, but they do represent a key area of interest for us going forward, and we intend to develop titles that offer greater scalability and flexibility,” Matsuda said.
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Justin is a news editor at TheGamer. He specializes in labor relations, intellectual property law, and game development. You can find his work in EGM, Vice, Unwinnable, Heterotopias, and more.