Japanese gaming giant Sega has made a dramatic move away from blockchain tech amid the ongoing crypto downturn, saying that “Western gamers are not big fans of our web3 initiative.”
Over the last two years, several companies, including Sega, Ubisoft and Square Enix, have announced plans to integrate blockchain technology and NFTs into their future projects.
This week, however, Sega announced a change in direction with regards to its investment into the technology, a move that is likely in response to both the ongoing decline of the crypto market and mainstream gamer aversion.
While initially embracing blockchain based NFTs as the “future of gaming”, Sega co-Chief Operating Officer, Shuji Utsumi, recently told Bloomberg that the company is putting aside its plans to develop its own blockchain-based games and will keep its notable franchises – including Yakuza and Sonic the Hedgehog – away from blockchain projects to “avoid devaluing its content.”
Not only is Sega pulling back from blockchain-based games but it is also reassessing its web3 approach when it comes to the company’s big-budget online multiplayer “super games”, which it is slated to begin releasing in 2026.
This news comes as a surprise considering Sega’s earlier announcement of being involved in several projects as a developer and licensing its intellectual property to third parties.
One of these announcements, back in October 2022, was for the launch of Sega’s first licensed blockchain game using the company’s Sangokushi Taisen franchise.
The new game is currently being built using Oasys technology, a decentralised blockchain video gaming platform that reduces expensive transaction costs, or “gas fees”, that are incurred on layer 1 blockchains such as Ethereum.
Oasys, based in Singapore and Japan, was founded by Shuji Utsumi himself, alongside Hajime Nakatani, President and CEO of Bandai Namco Research, Hironobu Ueno, CEO of doublejump.tokyo, Hironao Kunimitsu, founder of gumi and CEO of Thirdverse, and Gabby Dizon, Co-Founder of Yield Guild Games.
Oasys is currently working with Japanese company, Com2uS / XPLA, to help onboard a highly anticipated AAA blockchain game, Summoners War: Chronicles. It has also partnered with Ubisoft to create a new Web3 game, Champions Tactics: Grimoria Chronicles.
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