Square Enix Set To Board The Blockchain Bandwagon In 2019
Square Enix Holdings Co., Ltd. kicked off the New Year with a powerful letter to investors and general public. Written by the President, the letter addressed various aspects of the gaming industry the firm encountered in 2018. Notably, the firm acknowledged the potential of blockchain in revolutionizing the gaming industry.
Gaming industry be Blockchain’s killer app
With a largely optimistic tone, the letter called stakeholders’ attention to a number of emerging technologies. Notably, the President, Yosuke Matsuda, noted that emerging technologies present a wealth of opportunities for scaling their business. In particular, the year just ended saw technologies such as AR, VR and blockchain take center stage in public discourse.
Interestingly, blockchain started its journey in the financial sector. However, the cryptocurrency sector, on whose back blockchain flew into public headlines, is not doing so well. As such, blockchain needed a new “killer app” that could unlock its latent potential. Interestingly, knowledgeable observers think that this killer app could be the gaming industry.
Notably, there are already gaming entities that are giving blockchain technology a go. For instance, Ubisoft and other likeminded companies joined hands to inaugurate Blockchain Game Alliance. Formed last year, the outfit will act as an umbrella entity that will focus on issues like ways to exploit the promises of blockchain. With such initiatives already gaining traction, Square Enix will not be an entity walking in darkness.
Huge changes afoot in the digital content industry
This is to say that the companies that are blazing the trail will provide important lessons to late adopters. Nonetheless, the new technology is not without challenges. Notably, gaming companies with blockchain ambitions like Square Enix will need to steer clear of pitfalls the crypto sector encountered. Basically, it should not be lost to the entities that implementing such a complex technology is tricky. Therefore, according to knowledgeable observers, they will need to exercise much more caution, and stay open to new possibilities.
In light of the challenges, Square Enix and Matsuda are taking a cautious approach to the technologies. Notably, the President wrote that the company would consider not just blockchain but other potentially beneficial alternatives. As per Matsuda, this includes consideration of cloud streaming where players can stream games over the internet.
Interestingly, Matsuda see all these upcoming technologies as agents of change in the digital content sector. As such, there a very high likelihood of “a variety of major changes in the digital content industry and elsewhere in 2019.”