Square Enix moves deeper into web3 gaming with latest partnership

TL;DR Breakdown

• Square Enix partners with Elixir for Web3 gaming.

• Elixir offers MMORPGs on distributed ledgers, as Square Enix invests in blockchain.

• Mojang Studios, such as Rockstar Games are resisting the blockchain trend and disapproving NFT integrations.

Leading Japanese game publisher, Square Enix has announced a strategic partnership with PC gaming platform Elixir to venture into the realm of blockchain technology and Web3 gaming.

The alliance aims to facilitate the execution of long-term plans for both companies, enabling them to push the boundaries of their traditional offerings. The official announcement states that this strategic partnership is designed to drive the adoption of Web3 games for mainstream gamers.

A step towards decentralized gaming

Square Enix Director of Business Development, Hideaki Uehara, stated, “This partnership with Elixir Games represents yet another step for Square Enix to explore the promise of Web 3-decentralized gaming.”

Although specifics of the partnership operation have yet to be revealed, it is expected that Square Enix will capitalize on Elixir’s prior successes in the Web3 gaming sector. Earlier this year, Elixir integrated the Epic Games Store on its platform, a move intended to unite traditional and blockchain-based games under a single umbrella.

Elixir CEO Carlos Roldan expressed his enthusiasm, saying, “2023 has already seen more industry leaders enter the space with impactful projects, and we anticipate seeing more as the year progresses.” Elixir has recently made significant progress in blockchain-based gaming, offering users several MMORPG (massively multiplayer online role-playing games) titles across distributed ledgers like Ethereum, Polygon, Solana, and BNB.

Square Enix has previously shown its commitment to Web3 gaming. In 2020, the company led an investment round for the metaverse game The Sandbox and has released several blockchain games under its brand. Yosuke Matsuda, the president of Square Enix, has repeatedly emphasized in his annual letters to shareholders that the company will continue to venture into Web3 gaming, foreseeing it as a “major trend in gaming going forward.”

Limited interest in web3 gaming from major studios

Not all traditional game publishers have embraced the blockchain trend. Mojang Studios, the developers of Minecraft, banned non-fungible tokens (NFTs) on its platform, arguing that they contradict the game’s policies. The publisher explained that the speculation surrounding digital collectibles fuels profiteering, which undermines the long-term joy and success of players.

Similarly, Rockstar Games has forbidden NFTs on all fan-operated servers, forcing popular rapper Lil Durk to shut down his role-playing server. OTF Gaming lamented the situation, stating, “We have no choice but to comply with their demands, as we will be working with them to find an amicable solution to this matter.”