Sega Continues to Chase Web3 Initiatives With Line Next

Moving forward in their Web3 pursuit, Japanese gaming giant Sega has sealed a deal that was initially announced in July 2023. In the latest move the company has partnered with Line Next, Line’s Web3 arm, involving intellectual properties (IP). The collaboration will bring one or more of Sega’s IPs to DOSI (formerly Game Dosi), a gaming platform by Line Next.

Sega Is Not Shelving Their Blockchain Plans It Seems

Recently, Sega Singapore joined Line Next’s Finschia ecosystem as a node validator. According to the announcement, “To expand the Finschia ecosystem and popularize Web3, SEGA Singapore plans to collaborate in the development of Web3 games using famous SEGA IPs (Intellectual Properties). The Foundation looks forward to growing and evolving by increasing the participation of global Web3 game users in the Finschia ecosystem.”

Some reports aired during the initial announcement of collaboration between Sega and Line that the gaming company is shelving their plans for Web3. However, Shuji Utsumi, the company’s co-Chief Operating Officer, cleared the air that their strategy had been misconstrued.

In fact, he said during an event that Web3 is among the technologies Sega is exploring. Although he also said that they “are not trying to be a Web 3 company.” Utsumi further added that “That’s why I’d say we are Web 2.5. 2.3 or 2.7 — somewhere in the middle.”

Sega announced a partnership with double.tokyo, a company that develops blockchain games, to develop a game based on the theme of Sega’s game Sangokushi in 2022. They announced this deal in 2021 which sparked a community backlash.

They called out the company for going against their ethos to prevent harm to the environment. Their flagship game, Sonic The Hedgehog, was especially ‘dedicated’ to save nature from becoming a mechanized wasteland. Integrating blockchain-based assets like non-fungible tokens (NFTs) would harm the environment through the carbon emitted from its operations.

Companies apart from Sega including Ubisoft, Electronic Arts (EA), Take-Two Interactive, and more have shown interest in NFT integration. However, despite being major gaming companies, they have failed to pull Web3 initiatives in the mainstream. Ubisoft too had to kill their NFT initiative for Tom Clancy’s Ghost Recon Breakpoint, Digits, after the community backfired at them.

Gaming is among the largest industries with over 3 Billion active gamers in it. Some estimates even suggest that the sector is even bigger than other industries in the entertainment sector including music and films. Revenue-wise, it generated $221 Billion in 2023.

Blockchain-based assets promise full ownership and control to the owner. This is why many users who want to get away with centralized platforms governing ecosystems are turning towards NFTs and similar assets. However, traditional gamers do not support such initiatives citing the risk to the entertainment value of games.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.