Sega’s Chief Operating Officer (COO), Shuji Utsumi has bashed play-to-earn (P2E) games, stating that they are “boring”. Sega is a giant Japanese multinational video game and entertainment company with a market valuation of 721.03 billion JPY (~ $4.55 billion).
Questioning whether such games are even enjoyable, the change in Sega’s perspective raises concerns about the future of crypto games and whether other gaming firms will follow suit.
In 2022, Riaz Lalani of Gambit Games stated that “earning can’t be everything.” One year down the line, the decline in crypto gaming still continues. The decline has mainly been because many P2E games cannot maintain the price of their tokens as waves of new players join. This becomes problematic for players who spend hours of their time in front of the screen trying to earn those (rapidly depleting) tokens. This reduced the popularity of P2Es.
Sega’s P2E Blockchain Gaming Ambitions
Sega is known for its iconic works like Sonic the Hedgehog and had previously shown interest in exploring the potential of blockchain technology in gaming. The company had even announced plans to release its non-fungible tokens (NFTs) in 2021. However, according to Bloomberg, Sega is now stepping back from developing its own blockchain games and withholding its major intellectual properties (IPs) from being licensed for third-party blockchain games.
Utsumi’s comments about P2E games being boring reflect a growing sentiment within the gaming industry. Play-to-earn games, which allow players to earn crypto or other rewards by playing the game, have gained popularity in the past couple of years since Axie Infinity.
However, they have also faced criticism for their heavy financial focus and potential lack of engaging gameplay. Sega’s COO has raised a valid question: “What is the point of playing a game if it’s not enjoyable?”
Sega’s decision to withhold its major IPs from blockchain games is a strategic move to protect the value and reputation of its beloved franchises. Moreover, while the company remains cautious about blockchain gaming, it is still open to licensing its lesser-known titles for NFT collections and blockchain games.
Itsumi has emphasized that the company is not completely leaving blockchain initiatives. It plans to announce the provision of IP to blockchain projects this year and continue to invest in blockchain-related ventures. Sega’s stance reflects a balance between caution and curiosity.
Conclusion
As the gaming industry continues to evolve, developers must find ways to leverage the potential of blockchain technology. Even so, still prioritize the enjoyment and satisfaction of players. The future of blockchain gaming remains unknown today. However, with careful planning and innovation, it has the potential to transform the gaming experience for players around the world