Square Enix is going back on its plan to invest in NFTs and the blockchain according to the publisher’s most recent financial report, which was originally offered in Japanese.
The report (which you can find here) has president Yosuke Matsuda saying that “rather than using the proceeds from the divestiture in new investment domains such as NFT and blockchains, we intend to use them primarily to fund our efforts to foster solid IP and to enhance our development capabilities in our core Digital Entertainment segment.”
This is a stunning 180 from its initial position last month, when it sold many of its Western studios to the Embracer group, including Crystal Dynamics, the same group behind the Tomb Raider franchise, to invest in blockchain and NFTs.
Square Enix isn’t completely abandoning NFTs and blockchain plans of course – it just means that they’ll be turning to other efforts to fund their blockchain ambitions.
“Our intention is to undertake fundraising efforts for our new investment domains separate from those for our core business, and we are considering various possibilities, including potentially establishing a CVC,” Matsuda added.
Commenting on the decision to sell off the overseas studios and IPs, Matsuda said “its primary purpose was a reorientation of our portfolio”.
He added: “We especially revisited our studio and title portfolios from the perspective of stepping up our offering of online titles that we develop for the North American and the European market.