At present Sq. Enix President Yosuke Matsuda revealed a New 12 months message on Sq. Enix’s official web site, discussing NFT, Blockchain, and extra.
The letter features a quite in depth dialogue about blockchain video games and NFT (Non-Fungible Tokens). These tendencies look 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 may learn the complete message under.
“I want to start by wishing everybody a Pleased New 12 months.
The metaverse was a scorching subject in 2021, inspiring a vigorous 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 isn’t a mere buzzword however right here to remain. The metaverse garnered a lot consideration that 2021 was dubbed the “Metaverse 12 months”
I attribute this largely to advances in prolonged actuality (XR) expertise, the growing prevalence of the cloud and 5G, extra subtle blockchain expertise, and different technological evolutions which have taken place in quite a lot of fields over the previous a number of years. That’s as a result of these advances are giving rise to companies that fall below the metaverse umbrella. The metaverse will doubtless 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’ll result in modifications which have a extra substantial affect on our enterprise as effectively.
One other time period that gained fast forex in 2021 was “NFT” or “non-fungible token.” The appearance of NFTs utilizing blockchain expertise considerably elevated the liquidity of digital items, enabling the buying and selling of quite a lot of such items at excessive costs and sparking conversations the world over. I see 2021 not solely as “Metaverse: 12 months One,” but additionally as “NFTs: 12 months One” on condition that it was a yr during which NFTs have been met with an excessive amount of enthusiasm by a quickly increasing person base. Nevertheless, 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 supplied This, clearly, isn’t a perfect scenario, however I count on to see an eventual right-sizing in digital items offers as they change into extra commonplace among the many common public, with the worth of every out there 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 surroundings, 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 now we have subsequently been aggressive in our R&D efforts and investments in these areas.
Within the AI house, 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” quite 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 expertise. These efforts will assist us develop the video games that we launch into the world and improve their general high quality, however that isn’t 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 expertise 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 house from two main views, the primary being leveraging cloud applied sciences to distribute content material and the second being growing content material that gives prospects new types of pleasure enabled by the cloud’s attributes. Extra telecommunications infrastructure is being constructed, as exemplified by increasing 5G protection. Units are additionally making efficiency features. As these tendencies proceed, I imagine that the content material we offer will change into extra accessible, making it extra doubtless that our prospects 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 out there 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 will likely be making ample investments within the cloud house.
Lastly is blockchain video games. Be they single-player or on-line video games, video games have historically concerned a unidirectional stream whereby creators comparable to ourselves present a recreation to the shoppers that play them. In contrast, blockchain video games, which have emerged from their infancy and are at this very second getting into a progress part, are constructed upon the premise of a token economic system and subsequently maintain the potential to allow self-sustaining recreation progress. The motive force that almost all allows such self-sustaining recreation progress is variety, each in how folks interact with interactive content material like video games, and of their motivations for doing so. Advances in token economies will doubtless add additional momentum to this development of diversification. I see the “play to earn” idea that has folks so excited as a major instance of this.
I understand that some individuals who “play to have enjoyable” and who presently type the vast majority of gamers have voiced their reservations towards these new tendencies, and understandably so. Nevertheless, I imagine that there will likely be a sure variety of folks whose motivation is to “play to contribute,” by which I imply to assist make the sport extra thrilling. Conventional gaming has supplied no express incentive to this latter group of individuals, who have been motivated strictly by such inconsistent private emotions as goodwill and volunteer spirit. This reality isn’t 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 express incentive existed to reward them for his or her artistic efforts. I see this as one cause that there haven’t been as many main game-changing content material that have been person generated as one would count on.
Nevertheless, with advances in token economies, customers will likely be supplied with express incentives, thereby ensuing not solely in larger consistency of their motivation, but additionally making a tangible upside to their artistic efforts. I imagine that this may result in extra folks devoting themselves to such efforts and to larger potentialities of video games rising in thrilling methods. From having enjoyable to incomes to contributing, all kinds of motivations will encourage folks to interact with video games and join with each other. It’s blockchain-based tokens that can allow this. By designing viable token economies into our video games, we’ll allow self-sustaining recreation progress. It’s exactly this kind of ecosystem that lies on the coronary heart of what I confer with as “decentralized gaming,” and I hope that this turns into a significant development in gaming going ahead. If we confer with the one-way relationship the place recreation gamers and recreation suppliers are linked by video games which are completed merchandise as “centralized gaming” to distinction it with decentralized gaming, then incorporating decentralized video games into our portfolio along with centralized video games will likely 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 previously few years. We are going to maintain a detailed eye on societal shifts on this house 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 probably 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 carry to our enterprise surroundings will present us with quite a few alternatives to counterpoint folks’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, growing, and offering world-class content material, and we’ll contribute to the happiness of society and its folks by providing new types of pleasure.”