Blockchain technology appears to be key to Square Enix’s growth strategy.
The company released its latest financial figures, with another decline in overall sales being helped by the success of the MMORPG Final Fantasy 14.
However, the notoriety of blockchain technology is particularly revealing.
As part of the company’s medium-term business strategy, it aims to conquer new domains, strengthen its IP ecosystem and optimize the business structure for a Covid world.
These new domains are mainly focused on promoting blockchain gaming and entertainment.
Last week, the company unveiled its Symbiogenesis project with its first NFT collectible art sales based on a new IP where “the story unfolds based on players’ strategic moves.”
Previously, the company joined the Oasys blockchain and announced its plans for Final Fantasy NFTs.
Other plans include NFTs commemorating the 10th anniversary of Shi-San-Sei Million Arthur and investments in bitcoin-based fintech platform Zebedee, online medieval strategy game Blocklords, NFT trading card game Cross The Ages, blockchain game developer Animoca Brands and the decentralized metaverse The Sandbox.
In addition, there are the cloud gaming services Blacknut and Ubitus. The latter worked with Capcom on the cloud version of Resident Evil Village for Switch.
This focus on blockchain and cloud technology follows Square Enix President Yosuke Matsuda’s comments earlier in the year that he said these would become a “big trend” in gaming.
Final Fantasy 16 is not mentioned in its mid-term business strategy (its release is planned for summer 2023, which will happen in the next fiscal year).
In the first half of its current fiscal year, Square Enix’s net sales are down 3.3 percent, while operating income is down 10.7 percent year over year.
Sales of its games have declined despite the release of a number of new titles including Live A Live, PowerWash Simulator, Valkyrie Elysium and Star Ocean: The Divine Force.
Crisis Core Final Fantasy 7 Reunion and Forspoken are slated for release later this fiscal year.
Net revenue from MMO games has risen again, with increasing paying subscribers to Final Fantasy 14. That means nearly a quarter of net revenue from digital entertainment is now from MMO games.
The report mentions that no expansion packs for Final Fantasy 14 or Dragon Quest 10 will be released for the remainder of the fiscal year.