In short

• SEGA, the famous computer game engineer, pulls back from play-to-acquire blockchain gaming, refering to the activity as “exhausting.”
• COO Shuji Utsumi underlines that games ought to zero in on fun, in any case, SEGA will proceed with restricted investigation in blockchain.
• SEGA’s shift is similar to a broader slowdown on Web3, and the company is still open to getting involved in the future as technology gets better.

SEGA Corp., the gaming giant best known for Sonic the Hedgehog and Yakuza, has decided to withdraw from the play-to-earn market.

The company’s decision follows a volatile crypto market and waning player interest in GameFi, a blockchain-based gaming platform.

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SEGA Pauses Ambitious Play-to-Earn Plans

SEGA’s Co-Head Working Official Shuji Utsumi highlighted the seismic change in methodology for the respected firm. Play-to-earn games, in his opinion, are “boring,” raising questions about their value if they fail to live up to their fundamental promise of fun.

“For the majority of people in the video game industry, what blockchain advocates say may sound a bit extreme, but that is how the first penguin has always been,” said Utsumi.

In the past, SEGA and companies like Square Enix and Bandai Namco supported the blockchain-based technology, which it hoped would make its games more appealing. GameFi, on the other hand, has lost a lot of its appeal as a result of the collapse of the cryptocurrency market.

Utsumi noticed a hesitance to promise SEGA’s significant establishments to outsider blockchain projects. He is concerned that such actions might lower the content’s value. All things being equal, the organization will warily keep on fiddling with blockchain innovation.

For non-fungible tokens (NFTs), SEGA will allow less well-known franchises like Virtua Fighter and Three Kingdoms. This is a controversial move that initially drew a lot of opposition from gamers who cared about the environment.

Blockchain Technology Experimentation

SEGA’s blockchain trial and error will persevere, though on a lesser scale.

Utsumi talked about how the technology could be used in ways that could help a lot. These include making it possible to move characters and items between games.

Reflecting on the larger picture, this move from SEGA signals a general cooling trend on Web3 concepts. As the technology continues to mature, SEGA’s position may evolve.

“We are looking into whether this technology is really going to take off in this industry, after all,” added Utsumi.

Despite this, it would appear that the company is more concerned with enhancing the intrinsic entertainment value of its games than it is with the speculative appeal of blockchain technology.