At present 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 relatively intensive dialogue about blockchain video games and NFT (Non-Fungible Tokens). These developments 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’ll be able to learn the total message beneath.
“I wish to start by wishing everybody a Glad New Yr.
The metaverse was a scorching matter in 2021, inspiring a full of life international 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 is just not 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) know-how, the rising prevalence of the cloud and 5G, extra refined blockchain know-how, 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 companies that fall beneath the metaverse umbrella. The metaverse will possible see a significant transition to a enterprise part in 2022, with a variety of companies showing on the scene. As this summary idea begins to take concrete form within the type of product and repair choices, I hope that it’s going to result in modifications which have a extra substantial affect on our enterprise as nicely.
One other time period that gained fast forex in 2021 was “NFT” or “non-fungible token.” The arrival of NFTs utilizing blockchain know-how 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” provided that it was a 12 months wherein NFTs had been met with a substantial 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 offered This, clearly, is just not a great state of affairs, however I count on to see an eventual right-sizing in digital items offers as they change into extra commonplace among the many normal public, with the worth of every obtainable content material corrected to their true estimated value, and I search for them to change into as acquainted as dealings in bodily items.
To deal with these modifications in our enterprise atmosphere, 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 we’ve got subsequently been aggressive in our R&D efforts and investments in these areas.
Within the AI area, we established SQUARE ENIX AI & ARTS Alchemy Co., Ltd. (“AI & AA”) in March 2020 to pursue improvement efforts within the wider discipline of “leisure AI” relatively 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 know-how. These efforts will assist us develop the video games that we launch into the world and improve their total high quality, however that’s not 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 know-how to different firms, with a view to leveraging these R&D efforts throughout our complete Digital Leisure enterprise.
We’re exploring potential efforts within the cloud area from two major views, the primary being leveraging cloud applied sciences to distribute content material and the second being creating 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. Gadgets are additionally making efficiency good points. As these developments proceed, I imagine that the content material we offer will change into extra accessible, making it extra possible that our clients will uncover enjoyment as we achieve new touchpoints with them. Leveraging cloud applied sciences is extraordinarily efficient as a way of constructing our content material and companies uniformly obtainable and as a catalyst for creating new types of pleasure that increase upon the content material improvement capabilities for which we’re recognized. As such, we shall be making ample investments within the cloud area.
Lastly is blockchain video games. Be they single-player or on-line video games, video games have historically concerned a unidirectional circulation whereby creators corresponding to ourselves present a recreation to the shoppers that play them. Against this, blockchain video games, which have emerged from their infancy and are at this very second coming into a development part, are constructed upon the premise of a token financial system and due to this fact maintain the potential to allow self-sustaining recreation development. The motive force that almost all allows such self-sustaining recreation development is range, each in how individuals have interaction 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 development of diversification. I see the “play to earn” idea that has individuals so excited as a major instance of this.
I notice that some individuals who “play to have enjoyable” and who at present type the vast majority of gamers have voiced their reservations towards these new developments, and understandably so. Nonetheless, I imagine that there shall 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 supplied 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 truth is just not unrelated to the constraints of current 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 shall be supplied with specific incentives, thereby ensuing not solely in higher consistency of their motivation, but additionally making a tangible upside to their inventive efforts. I imagine that this can result in extra individuals devoting themselves to such efforts and to higher potentialities 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 may allow this. By designing viable token economies into our video games, we are going to allow self-sustaining recreation development. It’s exactly this form of ecosystem that lies on the coronary heart of what I check with as “decentralized gaming,” and I hope that this turns into a significant development in gaming going ahead. If we check with the one-way relationship the place recreation gamers and recreation suppliers are linked by video games which might be completed merchandise as “centralized gaming” to distinction it with decentralized gaming, then incorporating decentralized video games into our portfolio along with centralized video games shall be a significant strategic theme for us beginning in 2022. The essential and elemental applied sciences to allow blockchain video games exist already, and there was a rise within the societal literacy and acceptance of crypto property up to now few years. We are going to hold an in depth eye on societal shifts on this area whereas listening to the numerous teams of customers that populate it, and ramp up our efforts to develop a enterprise accordingly, with an eye fixed 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 imagine that the brand new applied sciences and ideas that I’ve mentioned and the modifications that they convey to our enterprise atmosphere will present us with quite a few alternatives to complement individuals’s lives by 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, creating, and offering world-class content material, and we are going to contribute to the happiness of society and its individuals by providing new types of pleasure.”