Sega Corporation Hits Pause on Blockchain Gaming Amidst Crypto Market Challenges

ChainPlay

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10 months ago

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Tokyo-based gaming studio Sega Corporation, known for popular franchises like Sonic the Hedgehog and Virtua Fighter, has announced its temporary withdrawal from the blockchain gaming sector. 

In an interview with Bloomberg, the company expressed its decision to withhold further development from third-party blockchain-gaming projects, meaning major franchises (Sonic, Yakuza, Virtua Fighter, e.t.c) and ongoing development for a new web3 game will be put aside for the meantime.

This move is aimed at preserving the value and integrity of their beloved franchises, as they wish to avoid potential devaluation caused by the current crypto industry turmoil.

Fans hoping to see web3 or NFT versions of Sonic or Yakuza will have to wait as Sega puts these plans on hold. In contrast, its similar cartoon game character counterpart, The Pokemon Company, posted a job on Linkedin in March that requires a “deep knowledge and understanding of Web 3, including blockchain technologies and NFT, and/or metaverse.”

As one company takes a hiatus, another ventures into web3 with caution.

Entry to Web3 Industry

Sega Corporation enthusiastically entered web3 and NFTs back in 2021 but has over time expressed dissatisfaction over how “play-to-earn” is being perceived mostly as a money-making tool.

Now, Sega has decided to take a cautious approach amid volatile market conditions. However, this does not mean the company is throwing in the towel on web3 gaming expansion. Sega remains open to the possibility of increasing its involvement in blockchain gaming as the technology matures.

Sega had previously partnered with OASYX to release Virtua Fighter skins as NFTs, joining other companies like Square Enix in exploring the potential of web3 and NFTs. While Sega's decision reflects a temporary setback for the blockchain gaming industry, other companies continue to forge ahead, with Square Enix actively developing its own web3 game.

As the crypto industry experiences ongoing turbulence, Sega's move highlights the challenges faced by traditional gaming companies venturing into the blockchain space. However, the company's decision to prioritize the long-term value of its iconic franchises underscores its commitment to maintaining the integrity and quality of its games.