As the modern Blockchain market continues to fluctuate to every new cryptocoin and NFT project, companies like Square Enix have kept this possible new avenue for revenue in consistent spitting distance. However, though there is speculative money to be earned in this volatile market, the history of alleged NFT and crypto scams could cost Square Enix any good faith that the company has earned from fans of its most popular franchises.
The problems with NFT integration specifically into video games range from in-game economies not being maintainable in the long term, to backlash over the environmental hazards of the current state of Blockchain technology. This history of backlash combined with the fact that NFT integration does nothing new for games that couldn't be done without a Blockchain paints a picture of Square Enix and the company's motives as being based on greed above all else.
Square Enix Continues to Double Down on NFTs
Though little NFT content has actually come from Square Enix over the last few years while the crypto technology has been passed around as a buzzword, the company has continued to suggest that there is something in the works. This has been confirmed more than once through public statements from Square Enix claiming that the company would be interested in pursuing Blockchain and Web3 technology in the future. However, it would appear that the developer is still hesitant to take its first few steps into releasing NFT content while backlash is still heated.
This push towards NFT content has started to take some form behind the scenes, though, with Square Enix filing trademarks for possible projects currently in the works. So, it might not be long before Square Enix starts pushing NFTs into upcoming games or simply rolling out projects alongside these titles that don't fully integrate. That being said, the public opinion of NFTs and cryptocurrency isn't as positive as Square Enix might assume based on the testimony of speculators looking at the Blockchain as a money-making system.
The Failing History of the Blockchain
While it can be easy to discredit Blockchain technology by pointing at failed NFT games like Logan Paul's CryptoZoo and calling it a day, the troubles with Web3 goes much deeper than this surface level. In the last few years, there have been hundreds of scams within the crypto space online that is so prevalent that online forums exist simply to teach how to manipulate the volatile market through so-called "Pump and Dump" schemes that are illegal in traditional finance. It makes for an untrustworthy environment where onlookers from outside of the crypto-enthusiast echo chambers see unregulated gambling at best and rampant fraud at worst.
The history of scams and discrediting experiences within the crypto space is unfortunately not the only controversy to huddle around Blockchain. There is also the environmental impact of cryptocurrencies, specifically caused by the mining of currencies like Bitcoin, which draws in nearly one whole percent of the total energy used by the world. Then there is the rampant theft of art from online artists who have had their work stolen, sometimes post-mortem, and minted into NFTs for the profit of a seller who had nothing to do with the creation of the art itself.
Square Enix Eroding its Own Fan Base
This history of fraud and deception among NFT and cryptocurrency projects has given the entire market a negative view from the general public. So, by continuing to show interest in the Blockchain technology and Web3 buzzwords that are tied to this history of fraud, Square Enix is sacrificing the value of its own brand for what can best be described as an online fad or trend. At worst, however, this heavy lean on future NFT projects gives off the impression that Square Enix is actively seeking to scam or commit fraud against its loyal fan base.
Considering that Square Enix is already suffering from low sales over the last year, even though the developer released a number of high-profile title, it would look like this brand loyalty could already be slipping. With flops in recent years like Marvel's Avengers and the selling off of a number of franchises and development studios, Square Enix is in a vulnerable state right now. More than anything, the developer doesn't need the shaky promise of a quick cash grab that are NFTs, but instead a game or series that might have the longevity to keep the company in the gaming spotlight.
NFTs Cannot Maintain a Game's Longevity
Through all of the scams, fraud, and bad publicity, the integration of NFTs into games have still only managed to prove to make the experience worse. This is thanks in part to the way that NFTs attempt to turn a game from a purchase of entertainment into an investment that will not only retain value after acquiring, but increase based on how well a player might perform. The problem with this concept, however, is that this model isn't sustainable and certainly won't bring players back to continue playing a service game or jump onto whatever sequel Square Enix has set for its flagship series.
There are plenty of notable examples of NFTs in games attempting to let players "earn money by playing" with the majority of these projects falling flat on actually being able to keep the flow of money going. This is mostly because this business model requires there to always be an influx of players ready to keep the economy stable by funneling more and more money into the system. However, when players are expecting to instead be paid themselves, they are less likely to spend any more money the longer they play.
In contrast, Square Enix has its own ongoing service title, Final Fantasy 14, which recently brought in a slew of players to sign in to either participate in the new Omega Protocol (Ultimate) raid or to watch the race between groups. This is a thirteen-year-old game that was once seen as a commercial and critical flop before being rebranded as A Realm Reborn and gaining expansions like Endwalker. So, the future of Square Enix shouldn't be in indulging a small group of speculative gamblers, but in the loyal fan base that already enjoys everything with the company's logo slapped on.