Sega Moves Away from Blockchain Games

In a new interview with Bloomberg, Sega’s co-Chief Operating Officer Shuji Utsumi says the company is abandoning plans to develop blockchain games for the time being. According to a GDC survey from earlier this year only 23% of game developers are interested in using cryptocurrency or blockchain technology in their games.

Sega won’t make blockchain games but will license some characters for NFTs.

Speaking to Bloomberg News, Utsumi said that Sega is re-evaluating its use of blockchain, crypto, and related play-to-earn game mechanics because “The action in play-to-earn games is boring, what’s the point if games are no fun?” While it’s moving away from the use of blockchain in its top-tier franchises, Sega will allow some characters to be used as NFTs, including Virtua Fighter and Three Kingdoms characters. The company will also offer “lesser franchises” for use in multiple blockchain games that have yet to be announced.

Although Sega will no longer include blockchain in its most high-profile games Utsumi, who told Bloomberg last month that Sega isn’t interested in any acquisition talks, didn’t rule out revisiting the technology down the line. He also refused to comment on whether blockchain technology would be used in Sega’s mysterious “super game” slate of big-budget releases scheduled for 2026. Despite previous optimism at Sega about the use of blockchain and other web3 tech, Utsumi told Bloomberg the company is now “looking into whether this technology is really going to take off in this industry, after all.”

Despite Sega’s hesitance about the technology, other gaming companies may be going all in on web3 features. It was recently revealed that Sony patented a system for transferring and trading PlayStation NFTs, showing that console makers could embrace the tech even if developers don’t. The use of blockchain and other web3 technology in games has been a sore spot for many players in recent years, leading to significant pushback, but it seems it won’t disappear anytime soon as long as developers and publishers see potential profits in its use.