“’The time has come,’ the Walrus said, ‘to talk of many things: of shoes and ships, and sealing wax, of cabbages and kings.’” Lewis Carroll probably didn’t foresee just how apt his poems would become in the 21st century. However, when it comes to non-fungible tokens (NFTs), it often seems like we are going down the rabbit hole. We have certainly seen a wide range of talk on everything from shoes to ape paintings made by AI technology.
It stood to reason that game publishers and studios would began looking into NFTs profitability and possibly Play-to-Earn (P2E). Square Enix broke the internet this week when it announced it was looking into NFTs. The backlash has been fierce, and the studio’s response has not dampened gamers anger.
Square Enix isn’t the first studio giant to suggest NFTs, though. Back in April 2021, SEGA also announced it would support NFTs. And just like Square Enix, the response was one of loud opposition. SEGA prides itself on taking environmental issues very seriously, as anyone who has played Sonic the Hedgehog can attest to. There has been concern that their message would be blurred and distorted in the face of monetary gains.
Much of the worry is due to the heavy amount of energy it takes to create an NFT in its current capacity. For those who have a bit confused, NFTs are digital assets that work off Ethereum blockchains and require mining in order to process the pending transaction into those blocks. The process includes computers trying to solve complex puzzles. The bigger the NFT, the more difficult the puzzle is and the more energy it takes to create the digital certification of each token.
SEGA promises further research
Due to the reaction of fans, SEGA chose to take a step back. They are conducting their own research and reexamining what, if any, part NFTs will have in their future. During a recent SEGA Sammy Holdings management meeting, the question of SEGA’s view on NFTs was raised. Their response in part states: “We need to carefully assess many things such as how we can mitigate the negative elements, how much we can introduce this within the Japanese regulation, what will be accepted and what will not be by users.”
Further, SEGA will consider whether moving forward into NFTs aligns with the core mission of “Constantly Creating, Forever Captivating.” Ultimately, it seems the company is willing to listen to their player base instead of only considering the monetary gains NFTs might shortsightedly present.
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