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Sega pulls back from blockchain gaming

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  • 2 min read

Sega, the renowned gaming company behind popular titles like Sonic the Hedgehog and Yakuza, has announced scaling back its involvement in blockchain gaming projects.

The company expressed dissatisfaction with certain aspects of blockchain gaming and aims to prioritise the protection of its intellectual property.

Talking to Bloomberg, Sega’s co-chief operating officer, Shuji Utsumi, criticised play-to-earn blockchain games, describing them as “boring” and lacking the entertainment value Sega values in its games. As a result, the company has decided to keep its major intellectual property away from third-party blockchain games, emphasising the importance of preserving the value of its renowned franchises.

However, Sega has not completely withdrawn from the blockchain gaming sphere. The company will still permit using characters from its lesser-known franchises, including Three Kingdoms and Virtua Fighter, as non-fungible tokens (NFTs).

Other gaming companies like EA have also backtracked from blockchain gaming

This approach will allow Sega to explore blockchain technology while maintaining control over its most iconic properties.

While Sega recognises the potential of blockchain technology, the company has put its blockchain gaming projects on hold and remains uncertain about incorporating Web 3.0 technology in its upcoming “super games” initiative. Sega’s cautious approach is driven by the risks involved and the backlash from other gaming companies that have ventured into the blockchain gaming space.

Despite this scaling back, Sega remains open to future involvement in blockchain gaming and acknowledges risk-takers’ significance in the industry. The company understands the value of blockchain technology in enabling seamless character and item transfers across different games and may further explore its potential as the technology continues to evolve. However, for now, Sega is committed to prioritising the fun and enjoyment factor gamers have come to expect from its titles.

Sega’s decision to scale back its involvement in blockchain gaming aligns with a broader trend in the industry, with companies like Square Enix, Ubisoft, and Electronic Arts also reevaluating their stance on blockchain gaming due to various factors.

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Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: [email protected]