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Sega’s U-turn on play-to-earn

By Aiden Crawford

PARIS, FRANCE - NOVEMBER 03: The logo of the Japanese video game development and publishing company, Sega Corporation is displayed during Paris Games Week 2022 at Parc des Expositions Porte de Versailles on November 03, 2022 in Paris, France. After two years of absence linked to the Covid-19 pandemic, Paris Games Week is making a comeback in Paris. The event celebrating video games and esports will be held from November 2 to 6, 2022. (Photo by Chesnot/Getty Images)
PARIS, FRANCE - NOVEMBER 03: The logo of the Japanese video game development and publishing company, Sega Corporation is displayed during Paris Games Week 2022 at Parc des Expositions Porte de Versailles on November 03, 2022 in Paris, France. After two years of absence linked to the Covid-19 pandemic, Paris Games Week is making a comeback in Paris. The event celebrating video games and esports will be held from November 2 to 6, 2022. (Photo by Chesnot/Getty Images) /
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In a surprising turn of events, Sega, one of the prominent players in the gaming industry, has made a notable shift in its stance towards Web3 and NFTs. Just two years after pledging its future to the “play to earn” trend during the height of Web3 mania, Sega has now had a change of heart. This shift highlights the evolving landscape and the challenges faced by companies exploring the intersection of blockchain technology and gaming.

Back in April 2021, Sega Japan announced its foray into the world of non-fungible tokens (NFTs), partnering with Double Jump Tokyo and expressing intentions to sell character-related tokens and explore NFT integration in future games. This move was met with skepticism, with critics questioning the long-term viability and sustainability of NFTs in the gaming industry.

Fast forward to the present, Sega’s co-Chief Operating Officer, Shuji Utsumi, revealed in an interview with Bloomberg that the company has reconsidered its strategy. Utsumi explained that Sega will now be withholding its biggest franchises from third-party blockchain gaming projects to protect the value and integrity of its content. Additionally, Sega has decided to shelve its own plans for developing games in the Web 3 and NFT genre, at least for the time being.

Utsumi’s comments indicate a reevaluation of the potential impact of blockchain technology and NFTs on the gaming industry. He emphasized the need to assess whether this technology will truly gain traction in the gaming space. While Sega’s major franchises are off the table for NFT integration, Utsumi mentioned that lesser-known properties like Three Kingdoms and Virtua Fighter may still see some tie-ins through third-party providers.

One of the most noteworthy statements from Utsumi is his candid acknowledgement that the action in play-to-earn games is often boring and lacks enjoyment. This sentiment echoes the concerns raised by many players and industry observers about the overall gaming experience in the context of Web 3 and NFTs. Sega’s shift away from these ventures indicates a renewed focus on prioritizing gameplay and player satisfaction.

Sega’s decision to distance itself from Web3 and NFTs reflects the changing tides in the games industry. As companies navigate the intersection of blockchain technology and gaming, the need for careful evaluation and consideration becomes apparent. Sega’s move highlights the importance of maintaining the integrity of valuable franchises and prioritizing enjoyable gameplay experiences. It remains to be seen how the gaming industry as a whole will adapt and evolve in response to the ongoing developments in Web 3 and NFTs.

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