Benzinga - Sega Corp. (OTC: SGAMY) the Japanese video game company behind "Sonic The Hedgehog," is re-evaluating its position in the blockchain gaming sector following the recent downturn in the global cryptocurrency market.
In an interview with Bloomberg, Shuji Utsumi, the co-chief operating officer of Sega, revealed that the company will no longer allow its flagship franchises to be used in third-party blockchain gaming projects in order to "avoid devaluing its content."
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"The action in play-to-earn games is boring,” Utsumi told Bloomberg. "What’s the point if games are no fun?"
Sega, along with other gaming companies like Square Enix Holdings Co., Ltd. (OTC: SQNXF) and Bandai Namco Entertainment Inc (OTC: NCBDF), had previously embraced blockchain technology to enhance their games' appeal.
While Sega will allow the use of its lesser-known characters from "Three Kingdoms" and "Virtua Fighter" for non-fungible tokens (NFTs), the company's initial plan to join the NFT community faced backlash from environmentally conscious gamers.
Utsumi also remained uncertain about incorporating Web 3.0 technology into Sega's upcoming "super game" initiative, a series of high-budget online multiplayer games scheduled for release starting in 2026.
"We’re looking into whether this technology is really going to take off in this industry, after all," Utsumi said.
Nevertheless, the company will offer its lesser-known franchise to upcoming blockchain games and will continue to invest "hundreds of millions of yen" in related ventures.
Utsumi expressed the company's willingness to embrace blockchain technology if it proves to be successful in the future.
"For the majority of people in the video game industry, what blockchain advocates say may sound a bit extreme, but that’s how the first penguin has always been. We should never underestimate them," he added.
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