Although they expressed interest in NFTs back in 2021, SEGA is reportedly pulling back on blockchain gaming amidst waning interest in the crypto space.

In a discussion with Bloomberg News,  SEGA co-chief operating officer Shuji Utsumi confirmed that the company would be shelving plans to create their own blockchain games, as well as withholding their biggest franchises from NFT projects to “avoid devaluing the brand”. Utsumi went on record to say that “play-to-earn” games were “boring” and there was “no point” if the games “are not fun”.

“The action in play-to-earn games is boring. What’s the point if games are no fun?”

That said, the company will still be allowing third-parties to make NFT games using some of their lesser known franchises such as Three Kingdoms and Virtua Fighter. It seems that SEGA is still not quite willing to pull out of the space completely, with Utsumi clarifying that they were still willing to see if blockchain and NFTs would eventually “take off” in the industry.

“We’re looking into whether this technology is really going to take off in this industry, after all”

“For the majority of people in the video game industry, what blockchain advocates say may sound a bit extreme, but that’s how the first penguin has always been. We should never underestimate them.”

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