Sega Withdraws from Blockchain Gaming, Citing Concerns Over Technology’s Viability

Sega, a prominent player in the GameFi and blockchain-based gaming sector, is reportedly exiting the industry, according to a recent report by Bloomberg. The gaming giant, once a championing voice for blockchain technology, has expressed reservations about its potential and has announced the cancellation of its plans to develop its own blockchain games.

In an interview with Bloomberg, Sega’s co-Chief Operating Officer, Shuji Utsumi, revealed the company’s shift in stance. Utsumi expressed apprehension about the technology’s future in the gaming industry, stating, “We’re looking into whether this technology is really going to take off in this industry, after all.” He further emphasized the importance of fun and engaging gameplay, expressing dissatisfaction with the current state of play-to-earn games, which he described as “boring.”

While Sega had previously announced that it would withhold some of its popular games and intellectual property from the blockchain space, it still plans to allow third-party developers to create blockchain games using its lesser-known IP. Last year, Sega entered into a partnership with Double Jump Tokyo, a development house, to produce blockchain games based on its less prominent intellectual properties.

Sega’s cautious approach to blockchain gaming was evident from the beginning. Prior to entering the field, the company had stated that it would withdraw if the industry became solely focused on financial gains, rather than delivering enjoyable gaming experiences.

Notably, Sega is an investor in the Asia-based crypto fund IVC, which actively supports GameFi projects. Recently, several Sega executives attended IVC’s IVS crypto conference in Kyoto, Japan.

As Sega bows out of blockchain gaming, its decision raises questions about the future of the sector and highlights the challenges faced by companies navigating the intersection of blockchain technology and gaming. The gaming industry continues to evolve, with companies reevaluating their strategies to ensure that they provide engaging experiences for players while also leveraging innovative technologies.