Sega Reenters the NFT Arena: Exploring Blockchain in Gaming

Sega's Unexpected Return to Blockchain Gaming

In the fast-paced world of technology, companies often change their strategies to keep up with trends and market demands. Back in 2020, the gaming industry witnessed a surge of interest in NFTs and cryptocurrencies, leading major players like Sega to jump on the bandwagon. However, Sega later withdrew from the space as public interest waned. Nevertheless, the company now appears to be making a surprising comeback in the world of blockchain gaming.

Sega's Co-COO, Shuji Utsumi, recently revealed an intriguing plan for a blockchain game based on the popular Three Kingdoms digital card series, designed specifically for mobile gamers. This ambitious project is under development by double jump.tokyo, a company known for its collaborations with industry giants like Square Enix and Tezuka Osamu, the creator of Astro Boy.

Sega's Initial Announcement and Environmental Concerns

Sega had initially announced this partnership in 2021 on their official Twitter account. However, the move sparked significant backlash from fans, primarily due to concerns about the environmental impact of blockchain technology. Critics argued that Sega's core message, as seen in Sonic The Hedgehog, focused on saving animals from deforestation and scientific testing, which seemed at odds with the energy-intensive nature of blockchain platforms.

Hironobu Ueno, the CEO of double jump.tokyo, acknowledged in an interview with Dengeki Online that many users are struggling to adapt to blockchain technology. He emphasized that the industry is still in its early stages of user adoption. Despite these challenges, both Sega and double jump.tokyo remain optimistic about their ability to overcome the negative stigma associated with NFTs and deliver a compelling gaming experience.

Utsumi explained that the integration of blockchain technology is intended to provide players with the sensation of owning in-game cards. However, due to the slow adoption of NFTs, in-game purchases will remain optional. The game is set to follow a free-to-play model, ensuring accessibility for a wider audience. This move represents Sega's commitment to exploring new business models, with the partnership offering valuable insights in this evolving landscape.

From Skepticism to a New Frontier

The project's existence was hinted at in July when Bloomberg interviewed Utsumi, indicating that Sega plans to allow external partners to use their lesser-known Three Kingdoms and Virtua Fighter characters for non-fungible tokens. However, Utsumi had previously expressed skepticism about NFT games, calling the action in play-to-earn games "boring." It seems that Sega has had a change of heart, at least in the Asian market, where "Battle of Three Kingdoms—Sangokushi Taisen" is set to launch. While Sega has teased the return of classic properties like Jet Set Radio and Crazy Taxi in a Web 3.0 experience, no further details have emerged since 2022.

Sega's unexpected return to blockchain gaming showcases the company's willingness to adapt and explore new horizons, even after initial setbacks. The success of their upcoming blockchain game in Asian markets may very well shape the company's future direction in the ever-evolving gaming industry.