Sega, once a supporter of blockchain gaming, has had a change of heart and is now scrapping plans to make games using the technology.
Speaking to Bloomberg, Sega's co-chief operating officer Shuji Utsumi reveals that the company is abandoning plans to create its own blockchain games for the foreseeable future. "The action in play-to-earn games is boring," Utsumi tells Bloomberg. "What's the point if games are no fun?"
According to the exec, Sega also won't be allowing its biggest IPs, including Sonic the Hedgehog, to be used in third-party blockchain games so as not to devalue its content.
For now, the publisher isn't sure whether or not it will implement Web3 technology in its "super game" initiative, which is scheduled for 2026. "We're looking into whether this technology is really going to take off in this industry, after all," Utsumi explains.
Despite the U-turn, Sega plans to allow third parties to use characters from its lesser-known series, such as Three Kingdoms and Virtua Fighter, as NFTs.
While the company behind Sonic has supported blockchain tech in the past, this isn't the first time it's raised concerns. Last year, CEO Haruki Satomi said the company would "carefully assess" the future of NFTs in its products following "negative reactions" from players and would not proceed "if it is perceived as simple money-making".
Last week, it emerged that Microsoft was considering acquiring a slate of developers, including Sega, but Utsumi quickly pointed out that Sega isn't looking for a buyout from Microsoft or anyone else.
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