Sega shouldn't have done what Nintendidn't

Bloomberg has reported that Sega is pulling back its plans to compete in the Web3 Thunderdome. The company was pre??viously shoveling coal into the crypto furnace; licensing blockchain games, and creating NFTs base??d on its properties.

Sega hasn’t canceled all of its crypto plans, but we’re watching in real time as the corporation realizes its mistake. Bloomberg reports that Sega “will withhold its biggest franchises from third-party blockchain gaming projects to avoid devaluing its content.�“We’re looking into whether this technology is really going to take off in this industry, after all,�co-Chief Operating Officer Shuji Utsumi told Bloomberg News. Sega will apparently be pulling back from play-to-earn games and? is reassessing its Web3 approach to the company's big-budget online multiplayer-focused so-called “super games�that are planned to start releasing in 2026.

This, of course, is all in response to the ongoing decline in the crypto market that some have dubbed the "Crypto Winter." The unfortunate part of this is that it’s largely a case of big executives and billionaires buying into an obvious scam, and many of them won’t really see any consequences for the poor decision-making. Instead, it's the people below them that will get the brunt of it. Meta laid off 10,000 employees when it became a??pparent that the Metaverse was a Web3 black hole that it was dropping money into. What a world.

Thankfully, no layoffs have been announced for Sega, but considering the blockchain plans were announced in 2021 followi??ng a ?low sales forecast�I don’t want to think about it.

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It's In The Game (But it doesn't exist)

Another week, another tedious story of rich men jumping on a bandwagon just as the wheels fall off. Electronic Arts has announced that its EA Sports division is partnering with multi-million dollar clothing company Nike in a new endeavor that w??ill bring blockchain elements to the former's range of popular sports titles.

EA Sports will work in alignment with Nike Virtual Studios in order to bring the sportswear manufacturer's new NFT range, known as ".Swoosh", to the studio's range of annual releases. One would assume this refers to titles ?such as EA Sports FC (formerly FIFA), Madden, and EA Sports PGA Tour. Details were not released on how the controversial blockchain technology would be incor?porated into its video games, but the publisher noted that details will follow in the near future.

//twitter.com/dotSWOOSH/status/1664286289867444226???s=20

"In future EA Sports titles, EA Sports and Nike plan to make select .Swoo??sh virtual creations available allowing members and players unique new opportunities for self-expression and creativity through sport and style," said EA in a statement. "Working with .Swoosh, we'll bring creativity and self-expression to the forefront for fans as they connect, compete, and share their love for sport."

Creativity.

Electronic Arts' foray into blockchain comes at a time when multiple game publishers take a second swing at making the "Pretend Shit for Tons of Money" tech fly for the gaming community. This comes at a time when numerous studios, such as Ubisoft, Team17, Square Enix, and Sega have been brutally lambasted for attempting to marry gaming with the metaverse, and a full year after the NFT market has saw a huge drop in Google searches. This isn't even to speak of the complete collapse of outlets such as FTX and the total money-wasting embarrassment of Meta.

Regardless, the drive continues to make the NFT/gaming synergy happen, with brow-furrowing, boneheaded? suits still utterly bumfuzzled as to why this expensive, unsustainable market that they don't understand and cannot control is simply not taking.

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Virtual Insanity

Sega legend Yu Suzuki has announced that he is teaming with metaverse company OASYX to create a collection of NFTs based upon his legendary fighting series, Virtua Fighter. The dreadful idea is expec??ted to be the first step in a series of metaverse projects for the iconi??c game director.

A total of 10?00 NFTs are currently in the works, debasing the likenesses of 11 Virtua Fighters from the first three releases in the series??, (so we at least know that Eileen is safe, for now). The new range of NFTs is expected to form the base for a future release of further "metaverse avatars"

"During my time as a director at Sega, I initially developed Virtua Fighter using innovative 3D computer graphics technology, which was cutting-edge and industry-leading at the time," said Suzuki in a statement. "Since then, the ??Virtua Fighter series has grown to be loved by many players and continues to be supported by numerous fans today."

"Through my work supervising the development of OASYX’s unique worldview, I am delighted to combine innovative technology in the form of blockchain-based NFTs, with three titles from the Virtua Fighter series to create new entertainment for?? a wide range of gaming fans."

Sega has been practically salivating at the prospect of diving into the metaverse, while simultaneously attempting to assure fans that it is wary of the controversial blockchain technology. As is the case with many other toe-dippers in recent months, both Sega and Suzuki seem completely unperturbed by the market's inability to find consistent success, demonstrated by the complete collapse of cryptocurrency company FTX, the embarrassment of Meta, the dropping Google Search numbers, or fan anger displayed towards Ubisoft, Square Enix, and other studios get?ting on board the rocket to nowheresville.

Yu Suzuki is wo??rking on a range?? of Virtua Fighter NFTs [VGC]

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Gotta mint 'em all

Apologies to all of you who were enjoying your morning, but I'm here to bring news that The Pokemon Company has opened a vacancy for a new role within its President & Corporate Development Office �A role which, according to the job listing, requires an applicant with?? "deep knowledge" and who is "deeply connected" with Web3, NFTs, blockchain technology, and the metaverse.

The role itself, it should be noted, is not "King of Pokemon NFTs" or similar, and the description does not openly state that the role is purely metaverse or Web3-based. However, the listing pushes for a creative type who is open to looking at new technologies and paths to expanding and i??mproving the Pokemon brand, which includes "monitoring and assessing technology and market players and trends in gaming, media and entertainment." The role is extremely high-ranking within the billion-dollar organizat??ion.

//twitter.??com/pory_leeks/status/1635044133277663234?s=20

Should the critter company be progressing down the blockchain route, one can only assume that it has been inspired by all of the success the controversial technology has seen in recent times. Whether it's the complete collapse of cryptocurrency company FTX, the embarrassment of Meta, or the utter contempt displayed towards studios such as Ubisoft, Square Enix, and Sega for dipping their toes into various failed projects, this absol??utely seems the right time to jump on the rickety, wooden-wheeled wagon for that one-way trip to the moon.

We shall see, in due time, if and how Web3 manifests itself within the Pokemon univers?e. And, despite the commentary above, it should be noted that many major brands are still assured that the blockchain is the way to go. Regardless of the plummeting numbers, we ??haven't heard the last from chez crypto just yet.

Shocked Pikachu Face.

Related: Pikachu reportedly gets the ex treatment in new Pokémon OCG starter set alongsid?e Pawmot on DotEsports

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It's the children who are wrong

Square Enix has kicked off its 2023 with a reaffirmation of its commitment to controversial and fragile blockchain gaming sector. As noted by Eurogamer, the company's annual New Year's letter, sees president Yosuke Matsuda reiter??ate that the publ?isher aims to release multiple blockchain-based games in the future.

"Our Group has multiple blockchain games based on original IPs under development, some of which we announced l??ast year, and we are undertaking preparations that will enable us to unveil even more titles this year," writes Matsuda. "We are also engaged in global sourcing from an investment perspective and will continue to take stakes in promising businesses whether we find them in Japan or abroad."

While the blockchain and NFT market was incredibly turbulent over the past year, resulting in enormous losses for investors as well as receiving constant blowback from players within the gaming sphere, Matsuda suggests ??that all the negative publicity not onl??y didn't faze his company's plans but, he writes, might actually be beneficial for the future of the cryptocurrency market.

"Blockchain has been an object of exhilaration and a source of turmoil, but with tha?t in the rearview mirror, we hope that blockchain games will transition to a new stage of growth in 2023," continues Matsuda. "If this [controversy] proves to have been a step in a process that leads to the creation of rules and a more transparent business environment, it will definitely have been for the good of the growth of blockchain entertainment."

"As I said in last year's New Year's letter, if ??we consider traditional gaming to have been centralized, then blockchain gaming must operate based on a self-sustaining decentralized model. It is that concept, that philosophy that I see to be key."

Elsewhere in the letter, Matsuda reiterates plans to shut down titles Final Fantasy VII: The First Soldier, (January 11) and Bravely Default: Brilliant Lights (February 28). In addition, Chocobo Racing GP will not receive any further major updates, wi?th season 5 being the title's final updated season.

"We wou??ld like to express our sincere gratitude to our customers for their patronage and sincerely apologize for this announcement." says Matsuda of these game closures.

Still, at least you have all t?hose sweet blockchain games to look forw?ard to.

Square Enix clea?ring house, doubles down on blockch?ain [Eurogamer]

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To be this bad take AGES

Following up on its previous interest in the controversial and highly unstable blockchain market, Sega has announced that it is ??partnering with a Japanese developer to publish its first blockchain video game.

As reported by 4Gamer and VGC, the untitled release will be a new entry in Sega's strategy series Sangokushi Taisen �a hybrid coin-op/card game franchise �based upon the legendary Romance of the Three Kingdoms folklore �is popular with Japanese arcade goers but is something of an anomaly on western soil. Sega is allowing studio Double Jump Games to license the Sangokushi Taisen IP for its new blockchain project, utilizing the com?pany's "Oasys" technology. Details are sketchy at this juncture as to what form the blockchain element will take, but characters and artwork from the series are likely to be part?? of the collectible process.

As you have likely read about, here and else, the blockchain and NFT market, allows for the creation of artwork, icons, items, and other tokens to be stored in an online capacity, with ownership rights to be bought, traded, and sold. While the past year has seen all manner of franchises and companies swiftly declare their love for the new tech, the market itself has proven incredibly uns??table, leading to huge losses in revenue, stolen "ownership" of items, and artists' work stolen and "resold" in NFT format.

In addition, video game companies trying to implement blockchain/NFT technology into their titles have often backpedaled in the face of criticism and derision from their respective communities. For more information on how NFTs and blockchain technology is attempting to become part of the mainstream gaming market, you can check out our previous feature by Jonathan Holmes.

Sega has announced its first blockchain game [VGC]

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Block world, no block chain

Microsoft and Mojang are making their stance clear on NFTs in the world of Minecraft. In a new statement, Mojang puts the foot down on any blockchain or NFT technologies integrating with Minecraft.

In a post titled "Minecraft and NFTs," the stud??io gives a lengthy but clear explanation of its decision. Recently, it says, community me??mbers have asked Mojang to clarify its position on NFTs and blockchain.

While the studio is currently updating its usage guidelines for more specificity, Mojang says that integrations of NFTs with Minecraft are "?generally not som??ething" it will support or allow.

//www.youtube.com/watch?v=1JSjZqV-YK8

Mojang specifically highlights scarcity and exclusion as factors. The studio notes that some companies have recently launched NFT implementations associated with Minecraft world files and skin packs:

"Each of these uses of NFTs and other blockchain technologies creates digital ownership based on scarcity and exclusion, which does not align with Minecraft values of creative inclusion and playing together. NFTs are not inclusive of all our community and create a scenario of the haves and the have-nots. The speculative pricing and investment mentality around NFTs takes the focus away from playing the game and encourages profiteering?, which we think is inconsistent with the long-term joy and success of our players."

The company also notes that some third-party NFTs may not be reliable, or involve the use of asset managers that can disappear. "We recognize that creation inside our game has intrinsic value, and we strive to provide a marke??tplace where those values can be recognized," the blog reads.

Non-craftable tokens

The closing part of the b??log sums it all up neatly:

"As such, to ensure that Minecraft players have a safe and inclusive experience, blockchain technologies are not permitted to be integrated inside our Minecraft client and s??erver applications nor may they be utilized to create NFTs associated with any in-game content, including worlds, skins, persona items, or other mods."

Mojang says it will be paying close attention to how blockchain evolves over time. It has no plans of implementing blockchain technology in Minecraft right now, however.

This echoes statements from other major storefronts and publishers. EVE Online developer and publisher CCP said no to NFTs and blockchain. Valve has barred blockchain games, and apps that can issue?? or ??exchange cryptocurrencies or NFTs, from Steam.

Itch.io perhaps put it most succinctly: "NFTs are a scam." Looks like Microsoft and Mojang aren't on board, either, which seems like a generally wise position.

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Company reportedly ramping up blockchain interest

According to multiple sources, Gam??eStop is initiating huge layoffs across its entire company, with redundancies expected to hit on an executive and store level, as well as the editorial team of tie-in-press outlet, ?Game Informer. While GameStop is yet to officially confirm the news, affected employees and industry insiders have already spread the grim news on social media.

GameStop's Chief Financial Officer Mike Recupero �who stepped into the role in the wake of the bizarre "GameStonks" scandal one year ago �has already resigned from the company. According to a staff memo, penned by GameStop CEO Matt Furlong and seen by Axios reporter Stephen Totilo, GameStop expects "a number of" incoming redundancies as part of a major cost-cutting exercise. Totilo speculates that the ??vague expression is an understatement of the number of jobs in jeopardy.

"This [decision] means eliminating excess cost?s and operating with an intense owner's mentality," writes Furlong in the memo. "Everyone in the organization must become even more hands-on and embrace a heightened level of? accountability for results."

Many Game Informer staff took to social media to express their shock, dismay, and sadness at the announcement, which sows understandable unease among GameStop's retail and editorial teams. The frustration is likely further bolstered by the fact that GameStop has reportedly been on a recruitment drive for individuals with experience in blockchain technology and eCommerce business �the company having h??ired somewhere in the region of 600 staff members within the past 12 months.

The situation at Game Informer is becoming a depressingly common occurrence for the gaming press. As I wrote on Twitter just yesterday, the fragility of the gaming industry as a whole �and the crude di?spensability with which hardworking teams are often treated by their owners �is ??unfair, brittle, and distressing.

While there is no officially stated link between the staff layoffs and GameStop's perceived interest in the blockchain, it's increasingly difficult not to find a comparison to the "pivot-to-video" debacle of the last decade, which saw talented writers/websites hit the bricks as companies attempted to shift to video-only models �almost entirely inspired by Facebook's success. This time, however, the money men are chasing trends that are already on the popularity downswing, at the cost of real people's livelihoods.

I speak ??for myself (and I assume many others) in wishing any affected staff condolences and best wishes.

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He says that this is part of a 'paradigm shift' in gaming

Ubisoft's speedy move into the NFT space has already caused a bit of a backlash. In a new interview with Finder, Ubisoft Strategic Innovati??ons Lab VP Nicolas Pouard says that gamers just "don't get it for now."

Between its Quartz program and its investment in other companies, Ubisoft has been pretty clear about wanting to move into the crypto and NFT space. CEO Yves Guillemot confirmed the company wants to both create its own blockchain games and invest in others. And Ghost Recon Breakpoint has already received its own NFTs, though even developers within the company are criticizing them.

In this ?new interview, Pouard addresses the negative reaction, saying it was a reaction they were expecting. "We know it's not an easy concept to gra?sp," said Pouard. "But Quartz is really just a first step that should lead to something bigger."

Pouard emphasizes th?at Ubisoft will keep "experimenting" and "releasing features and ser??vices," and then the interview segues into the potential positives. This is part of a "paradigm shift" in gaming, according to Pouard, and he says gamers don't get what a secondary market could provide.

"For now, because of the current situation and?? context of NFTs, gamers really ?believe it's first destroying the planet, and second just a tool for speculation," said Pouard. "But what we [at Ubisoft] are seeing first is the end game. The end game is about giving players the opportunity to resell their items once they're finished with them or they're finished playing the game itself.

"So it's really, for them," Pouard continues. "It's really beneficial. Bu??t they don't get it for now."

Aside from the comment that skirts the environmental aspect of NFTs, it is interesting to hear that critics of NFTs "don't get it for now." Especially when options to buy and sell products on a marketplace have existed in this space for some time now, and that game developers have laid out exactly why th?e dream of assets moving across AAA games is, well, a dream.

For solid reference, Quartz itself doesn't seem to be doing great. Later on in the interview, Pouard says U?bisoft will let each team decide whether to use Quartz or not.

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The new battle royale?

"A Peter Molyneux NFT." Enough said. Now I have your attention.

Announced this past weekend, Peter Molyneux's studio 22cans is launching a new game in 2022 called Legacy, and surprise! It promises the moon. Here'?s the synopsis befo??????????????????????????re I get to the monetary aspect, which is no doubt the entire reason this game exists:

"Legacy is a creative entrepreneur’s dream come true, an opportunity for players to build their very own business, designing their very own products from a huge array of possibilities as they create a business empire the likes o??f which the world has never seen!"

Sitting down? This game is utilizing both NFT and blockchain tech. Molyneux claims you can "EARN" in the game, as you balance a happy workforce and the efficiency of your operation: "owning a Land NFT allows you to start your own in-game blockchain business association in Legacy. You will be able to play Legacy, wh?ile earning and owning your gameplay. LegacyCoin (LEGACY) is a new Cryptocurrency lying on the Ethereum blockchain which complies with the tried and? trusted ERC-20 token standard."

Naturally, all of this is extremely dependent on long-term growth and sustainability (as well as a degree of trust), which isn't something Molyneux is known for anymore. So at one point, there was fun to be had with Molyneux mucking about the gaming industry, but I'm just not feeling it anymore. Given the high short-term gains of some NFT ventures this could fund his studio for a while longer, but seeing 22cans come out with mediocre games only to eventually abandon them is more sad than entertaining.

No three words have instilled more fear in my heart this year than: "Molyneux, blockchain, and NFT" in the sam??e sentence. Was Molyneux actually an N??FT this entire time?

I guess this is what the below version of Legacy (shown off in 2019) became?

//www.youtube.com/watch?v=BtxwATMd_bE

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What to know about Ubisoft Quartz and Digits

Ubisoft CEO Yves Guillemot recently told investors that the company wants to be "one of the key players" in blockchain gaming, and today, Ubisoft announced Quartz �its approach to NFTs in games you've actually heard of. First up, Ghost Recon Breakpoint.

The announcement trailer runs down the high-level pitch for the Ubisoft Quartz beta, and there's also a dedicated site that gets into the nitty-gritty of Digits, which is what the NFTs are called. Put simply, Digits are limited-edition in-game cosmetic items with unique serial numbers, they can be sold from player to player with a third-party marketplace like Rarible or Objkt, and? they have an "ownership history" of everyone who's come before.

//www.youtube.com/watch?v=eSVoJ0WUQfY

Depending on who you ask, the program, in general, isn't too far removed from something like the Steam Market (minus all the ??NFT-specific considerations that are a? big deal).

Digits are "stored on the Proof-of-Stake (PoS) blockchain Tezos," which is a comparatively less energy-intensive solution than the Proof-of-Work protocol used for "other blockchains such as Bitcoin and Ethereum" �but these things are all relative. On the ??sustainability front, Ubisoft says it will make "details" about Ubisoft Quartz "public" as part of its "[commitment] to measuring its global environmental impact."

For n??ow, Ubisoft Quartz is technically a beta, so its reach is relatively limited.

Digits exist in owners' third-party crypto-wallets, and they're "playable" in the Ubisoft Connect PC version of Ghost Recon Breakpoint �the only supported game so far �after they've been synchronized with the player's inventory. The plan is for "purely cosmetic items" rather than gear that can "influence the gameplay," whether that's PvE ?or PvP.

There are also eligibility requirements: in order to acquire Digits, players need to be 18 years or older, reside in an eligible territory, have 2-Factor enabled for Ubisoft Connect, and be at least "XP Level 5" in Breakpoint?. The launch is set for Dec. 9 at 10:00 a.m. Pacific.

To give you a sense of what Digits even look like, the first three �M4A1 Tactical | Wolves, Wolf Enhanced Helmet A, and Wolf Enhanced Pants �are shown on the Ubisoft Quartz dashboard. They'll be given out for free at varying times (the first on? December 9) and with varying requirements (the steepest of which is over 600 hours of global playtime).

This move with Quartz �or really any of Ubisoft's blockchain experiments �might go in one ear and out the other. That's exactly how I feel, too. But whether it's play-to-earn games or NFTs based on video game artwork or limited-edition "Wolf Enhanced Pants" in something like Ghost Recon, it's clear that other publishers are also weighing their options in the short and long te?rm. Games aren't just games anymore. (Some of them, at least.)

We'll keep tabs on how the Quartz program progresses (presumably with other games beyond Ghost Recon Breakpoint once the "beta" results are in), but for now, this ??scheme feels like a have-your-cake-and-eat-it-too moment for Ubisoft to appease investors.

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Yeah, this is a thing, I guess

Ubisoft held its earnings call for the quarter last week, and alongside addressing its financials and upcoming slate of games, its executives also di??scussed th?e blockchain. Ubisoft is getting into the blockchain business.

The company had already been looking into the blockchain space with an investment in Animoca Brands, which develops games like The Sandbox. Ubisoft is als?o a founding member of the Blockchain Game Alliance.

In last week's earnings report, Ubisoft highligh?ted these facts. It a??lso discussed how the company will continue to explore the blockchain space:

"This long-range exploration ties in with Ubisoft’s constant search for innovation and new wa??ys to empower players as true stakeholders of its worlds. It also gives Ubisoft the perspective to reflect on the best ways to overcome blockchain’s initial limitations for gaming around sustainability and scalability."

On its earnings call, Ubisoft CEO Yves Guillemot confirmed that Ubisoft wants to both invest in blockchain companies and work on organically creating its own games, too. Here's Guillemot with some more to say on how it might end up in Ubisoft games in the future (thanks, IGN):

"[Blockchain] will enable more play-to-earn that will enable more players to actually earn content, own content, and we think it's going to grow the industry quite a lot. So we've been working with lots of small companies going on blockchain and we're starting to have a good know-how on how it can impact the i??ndustry?, and we want to be one of the key players there."

Ubisoft has been wrestling with its own demons, as a new report says employees are frustrated with the lack of progress at the company following reports of a toxic internal culture. And both NFTs and the blockchain are a technology that's been hotly debated, with many sound concerns voiced over their proliferation. CFO Frédérick Duguet did note those criticisms,? mentioning the importance of learning about?? the "impact on environments."

I suppose we'll see how this pans ?out for Ubisoft games to come.

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