Microsoft has made an investment in blockchain-focused game developer Wemade, despite previous statements from Xbox boss Phil Spencer expressing skepticism regarding the technology. The discourse surrounding blockchain-enabled "Play-to-Earn" video games has been heated, as gamers question the value and necessity of more extreme monetization. Xbox has publicly been averse to exploring blockhain-enabled games, but this new Wemade investment shows it may be more open to the technology behind the scenes.
In an interview in August, Spencer directly addressed the topic of play-to-earn games. He said at the time that he was "cautious" of blockchain games because they create a "workforce out of players." As far back as 2021, Spencer described certain NFT games as feeling more "exploitative" than "about entertainment." Suffice to say, Spencer had strong opinions regarding blockchain-enabled games and worried that they could take advantage of Xbox's audience.
Wemade confirmed Microsoft's investment in the company on Wednesday, saying that Microsoft was part of an investment round that totaled nearly $46 million. How much of that $46 million was contributed by Microsoft was not shared. Wemade is a game developer and NFT platform provider that describes its 2018 release Mir 4 as "the world's first well-made blockbuster blockchain game." The company has also dedicated itself to expanding and investing in building its "global digital economy platform" in the future.
Considering Spencer's point of view on the subject, Microsoft's investment in Wemade comes as somewhat of a surprise. Of course, while Spencer is a representative of Microsoft, his views are not necessarily the company's views. Microsoft may see more of future in blockchain technology and platforms than Spencer does. Spencer oversees Microsoft's Xbox division and is certainly very influential at Microsoft, but wouldn't have direct purview over Microsoft's investment efforts. Still, with Wemade being a game developer, it's unclear whether Spencer would be involved in the decision.
Alternatively, Microsoft could simply see investing in Wemade as an opportunity to diversify where it's putting its money. While blockchain technology is highly controversial, no one really knows whether it will be embraced or rejected in the future. Despite environmental concerns regarding cryptocurrency mining and NFT minting, the criticism surrounding blockchain technologies is softening.
Whatever Microsoft's intentions investing in Wemade, whether it's interested in the company's gaming endeavors or not, the decision will bring into question the sincerity of Spencer's past comments. Even if Spencer remains adamant that blockchain-enabled games will stay away from Xbox, players could question whether Microsoft will push forward anyway. The Wemade investment creates some significant questions for Xbox to answer going forward.
Source: VGC