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Square Enix ventures deeper into Web3 gaming with Elixir partnership

Japanese game publisher Square Enix (NASDAQ: SQNXF) has announced a collaboration with PC gaming platform Elixir for its incursion into blockchain technology and Web3 games.

The collaboration has been described as offering each party the benefits of achieving its long-term plans, with both entities keen on pushing the frontiers of their traditional offerings. According to the official announcement, the “strategic partnership” is geared toward driving the adoption of Web3 games for mainstream gamers.

“This partnership with Elixir Games represents yet another step for Square Enix to explore the promise of Web 3-decentralized gaming,” noted Square Enix Director of Business Development Hideaki Uehara.

Details of the partnership operation remain sparse, but analysts believe that Square Enix will lean on Elixir’s previous successes in the Web3 gaming industry. At the start of the year, Elixir integrated the Epic Games Store on its platform, a move designed to merge traditional games with blockchain-based ones under one umbrella.

“Our team is incredibly excited to bring our technology to work, and we foresee Elixir users playing Web2 and Web3 games alike without distinction,” said Elixir CEO Carlos Roldan. “2023 has already seen more industry leaders enter the space with impactful projects, and we anticipate seeing more as the year progresses.

Elixir’s recent strides in blockchain-based gaming have seen them offer users multiple MMORPG (massively multiplayer online role-playing games) gaming titles across distributed ledgers like Ethereum, Polygon, Solana, and BNB. While there appears to be a lull among traditional game publishers crossing over to Web3 games, Elixir has continued to forge ahead with full steam.

Back in 2020, Square Enix led an investment round for the metaverse game The Sandbox while releasing several blockchain games under its banner. Yosuke Matsuda, Square Enix’s president, has repeatedly noted in his annual letter to shareholders that the company will continue its march into Web3 gaming, hoping it will be a “major trend in gaming going forward.”

Waning interest among game publishers

Mojang Studios, developers of Minecraft, confirmed a ban on non-fungible tokens (NFTs) on its platform on the grounds that they run contrary to the game’s policies. The publishers noted that speculation around digital collectibles stokes the embers of profiteering, “which is inconsistent with the long-term joy and success of players.”

Rockstar Games has also prohibited NFTs on all fan-operated servers forcing popular rapper Lil Durk to take down his role-playing server.

“With heavy hearts, we received this news which is unfortunate for our team and, most importantly, for our community,” said OTF Gaming. “We have no choice but to comply with their demands, as we will be working with them to find an amicable solution to this matter.”

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