In the present day Sq. Enix President Yosuke Matsuda printed a New Yr message on Sq. Enix’s official web site, discussing NFT, Blockchain, and extra.
The letter features a quite in depth dialogue about blockchain video games and NFT (Non-Fungible Tokens). These traits seem like an space of focus for the corporate, whereas Matsuda-san acknowledges that the “Majority of gamers” have “expressed reservations” about them.
We additionally hear about different focus areas like AI and cloud gaming.
You possibly can learn the total message beneath.
“I want to start by wishing everybody a Comfortable New Yr.
The metaverse was a sizzling matter in 2021, inspiring a full of life world dialog first about what the metaverse is after which about what kind of enterprise alternatives it presents. In opposition to this backdrop, Fb modified its title in October to Meta, serving as proof that the idea shouldn’t be a mere buzzword however right here to remain. The metaverse garnered a lot consideration that 2021 was dubbed the “Metaverse Yr”
I attribute this largely to advances in prolonged actuality (XR) expertise, the growing prevalence of the cloud and 5G, extra refined blockchain expertise, and different technological evolutions which have taken place in a wide range of fields over the previous a number of years. That’s as a result of these advances are giving rise to providers that fall below the metaverse umbrella. The metaverse will possible see a significant transition to a enterprise part in 2022, with a variety of providers showing on the scene. As this summary idea begins to take concrete form within the type of product and repair choices, I’m hoping that it’s going to result in modifications which have a extra substantial affect on our enterprise as properly.
One other time period that gained fast forex in 2021 was “NFT” or “non-fungible token.” The arrival of NFTs utilizing blockchain expertise considerably elevated the liquidity of digital items, enabling the buying and selling of a wide range of such items at excessive costs and sparking conversations the world over. I see 2021 not solely as “Metaverse: Yr One,” but additionally as “NFTs: Yr One” on condition that it was a 12 months wherein NFTs had been met with an excessive amount of enthusiasm by a quickly increasing person base. Nonetheless, we do observe examples right here and there of overheated buying and selling in NFT-based digital items with considerably speculative overtones, whatever the noticed worth of the content material supplied This, clearly, shouldn’t be an excellent state of affairs, however I count on to see an eventual right-sizing in digital items offers as they turn into extra commonplace among the many common public, with the worth of every accessible content material corrected to their true estimated price, and I search for them to turn into as acquainted as dealings in bodily items.
To deal with these modifications in our enterprise setting, the medium-term enterprise technique that we unveiled in Might 2020 recognized AI, the cloud, and blockchain video games as new domains on which we must always focus our investments, and now we have subsequently been aggressive in our R&D efforts and investments in these areas.
Within the AI house, we established SQUARE ENIX AI & ARTS Alchemy Co., Ltd. (“AI & AA”) in March 2020 to pursue growth efforts within the wider subject of “leisure AI” quite than being constrained by conventional ideas of gaming AI. The agency’s R&D efforts focus totally on pure language processing, world fashions, and simulation expertise. These efforts will assist us develop the video games that we launch into the world and improve their general high quality, however that isn’t all. By incorporating the output of those R&D efforts into digital avatars and elsewhere, we plan to use that output to all kinds of content material and supply the related expertise to different firms, with a view to leveraging these R&D efforts throughout our total Digital Leisure enterprise.
We’re exploring potential efforts within the cloud house from two main views, the primary being leveraging cloud applied sciences to distribute content material and the second being growing content material that gives clients new types of pleasure enabled by the cloud’s attributes. Extra telecommunications infrastructure is being constructed, as exemplified by increasing 5G protection. Units are additionally making efficiency good points. As these traits proceed, I consider that the content material we offer will turn into extra accessible, making it extra possible that our clients will uncover enjoyment as we acquire new touchpoints with them. Leveraging cloud applied sciences is extraordinarily efficient as a method of creating our content material and providers uniformly accessible and as a catalyst for creating new types of pleasure that broaden upon the content material growth capabilities for which we’re identified. As such, we might be making ample investments within the cloud house.
Lastly is blockchain video games. Be they single-player or on-line video games, video games have historically concerned a unidirectional circulate whereby creators resembling ourselves present a sport to the customers that play them. Against this, blockchain video games, which have emerged from their infancy and are at this very second coming into a progress part, are constructed upon the premise of a token economic system and subsequently maintain the potential to allow self-sustaining sport progress. The motive force that almost all permits such self-sustaining sport progress is range, each in how individuals interact with interactive content material like video games, and of their motivations for doing so. Advances in token economies will possible add additional momentum to this pattern of diversification. I see the “play to earn” idea that has individuals so excited as a main instance of this.
I notice that some individuals who “play to have enjoyable” and who presently kind nearly all of gamers have voiced their reservations towards these new traits, and understandably so. Nonetheless, I consider that there might be a sure variety of individuals whose motivation is to “play to contribute,” by which I imply to assist make the sport extra thrilling. Conventional gaming has provided no specific incentive to this latter group of individuals, who had been motivated strictly by such inconsistent private emotions as goodwill and volunteer spirit. This reality shouldn’t be unrelated to the restrictions of present UGC (user-generated content material). UGC has been introduced into being solely due to people’ need for self-expression and never as a result of any specific incentive existed to reward them for his or her inventive efforts. I see this as one cause that there haven’t been as many main game-changing content material that had been person generated as one would count on.
Nonetheless, with advances in token economies, customers might be supplied with specific incentives, thereby ensuing not solely in larger consistency of their motivation, but additionally making a tangible upside to their inventive efforts. I consider that it will result in extra individuals devoting themselves to such efforts and to larger prospects of video games rising in thrilling methods. From having enjoyable to incomes to contributing, all kinds of motivations will encourage individuals to have interaction with video games and join with each other. It’s blockchain-based tokens that can allow this. By designing viable token economies into our video games, we’ll allow self-sustaining sport progress. It’s exactly this form of ecosystem that lies on the coronary heart of what I seek advice from as “decentralized gaming,” and I hope that this turns into a serious pattern in gaming going ahead. If we seek advice from the one-way relationship the place sport gamers and sport suppliers are linked by video games which are completed merchandise as “centralized gaming” to distinction it with decentralized gaming, then incorporating decentralized video games into our portfolio along with centralized video games might be a serious strategic theme for us beginning in 2022. The fundamental and elemental applied sciences to allow blockchain video games exist already, and there was a rise within the societal literacy and acceptance of crypto belongings prior to now few years. We are going to preserve an in depth eye on societal shifts on this house whereas listening to the various teams of customers that populate it, and ramp up our efforts to develop a enterprise accordingly, with a watch to doubtlessly issuing our personal tokens sooner or later.
Our life have modified, and we’re studying to coexist with COVID-19. In opposition to that backdrop, I consider that the brand new applied sciences and ideas that I’ve mentioned and the modifications that they create to our enterprise setting will present us with quite a few alternatives to counterpoint individuals’s lives by way of digital leisure, which is on the core of our enterprise. This on the identical time implies that we’re seeing the beginnings of additional leaps ahead for our enterprise. We stay dedicated to creating, growing, and offering world-class content material, and we’ll contribute to the happiness of society and its individuals by providing new types of pleasure.”