Square Enix: Pioneering New Realms in Blockchain Gaming

Research Analyst/
Feb 26, 2024

Image Source: ©SQUARE ENIX

Table of Contents

1. Introduction

2. The end of hibernation: awakening of a global gaming powerhouse

2-1. Japan’s strategic move towards market revitalization through crypto-friendly regulations in 2023

2-2. Momentum builds in the Japanese blockchain gaming market

2-3. Exciting prospects in the japanese blockchain gaming market: market size, ip, and culture

3. Square Enix leading the charge in the Japanese blockchain gaming market

3-1. Square Enix: A pinnacle commitment to blockchain among Japanese game companies

3-2. Advancing the token economy: Square Enix’s vision for enhanced scalability through blockchain adoption

4. Symbiogenesis: shaping narratives alongside ten thousand gamers in an original IP-driven blockchain game

4-1. Immersive browser-anchored storytelling entertainment, focused on ‘information exchange’ within a vast universe

4-2. Focusing on providing memories to true fans with a craftsmanship approach

5. Set to establish a success paradigm demonstrating blockchain potential in Japan




1. Introduction

Square Enix made a strategic entry into the dynamic blockchain gaming market with the launch of Symbiogenesis on December 21, 2023. Renowned as the catalyst behind Japan's RPG surge and the innovative force steering classics like Final Fantasy and Dragon Quest, Square Enix now stands as a formidable player in Japan's gaming space, commanding a market capitalization exceeding $4.6 billion. This report delves into the dynamics shaping the Japanese blockchain market, Square Enix's strategic interpretation of blockchain's value proposition, and and the underlying motives steering its inaugural venture, Symbiogenesis.

2. The End of Hibernation: Awakening of a Global Gaming Powerhouse

2-1. Japan’s strategic move towards market revitalization through crypto-friendly regulations in 2023

Japan, having responded robustly to significant hacking incidents like Mt. Gox (2014) and Coincheck (2018) with stringent regulations, is now signaling a proactive embrace of a pro-Web3 stance as the linchpin of its new capitalist policy under the Kishida administration. In tandem, Japan has realigned its regulatory compass to cultivate emerging sectors, such as NFTs and metaverses. Notably, in July 2022, the Web3 Policy Promotion Office was established, placing the blockchain industry, with Web3 at its core, at the forefront of the national growth strategy.

Building on diverse recommendations, the government's White Paper on Virtual Asset Regulation (unveiled in April 2023), received final approval, prompting concerted efforts to liberate ecosystem participants hampered by stringent regulations. Simultaneously, the Japanese government is proactively alleviating the market's burden through enticing incentives, including endorsing stablecoin issuance, a 20% reduction in personal income tax rates, and exempting corporate taxes on tokens issued by companies.