Square Enix publishes a new year’s letter committing to fueling NFT hell
Square Enix will kick off 2022 in the most horrendous way possible. They’re issuing a New Years Letter dedicated to the metaverse and NFTs. Square Enix president Yosuke Masuda described how Square Enix plans to incentivize players through their own token-driven economies.
Square Enix reiterates the sentiments of companies such as Sega and EA in their letter in which they insist that “metaverse” does not exist. Matsuda recognizes that there is risk in overvaluing some digital goods but he envisions them becoming more common with their value being corrected over time.
You can view his entire letter on Square’s website. However, I must highlight the most absurd, hollow paragraph that suggests that blockchain-based tokens offer any meaningful solutions for problems related to user-generated content and compensation.
Some people “play to have fun”, who make up the majority of current players, have expressed reservations about these new trends. This is understandable. But I think there will be some people who “play to have fun” and are motivated to make the game more enjoyable. This latter group was motivated solely by inconsistent personal feelings like goodwill or volunteer spirit. Traditional gaming did not offer any explicit incentives. This is due to the limitations of UGC (user-generated material). UGC was created out of the desire to express oneself and not as a reward for others’ creative work. This is one reason why there hasn’t been as much game-changing content created by users as one might expect.
Square Enix seems to be very concerned about paying creatives compensation for the “tangible upside” they have provided to players. From the top of my mind, I recall Ubisoft’s request for unpaid fanwork in Beyond Good and Evil 2. Then there was the time that fans fixed the terrible font choice in Final Fantasy Pixel Remaster. I also remember the years when I relied on Square Enix for NieR Automata PC fixes. While fan work is extremely valuable, there’s no part of me that believes these companies are genuinely interested in creating equitable returns for creatives and players in any situation.
Matsuda continues to say that he hopes these motivations, such as playing to have fun and earning money, will encourage creativity. Matsuda suggests that crypto assets are becoming more accepted and Square Enix might create its own tokens.
It is not lost on me, the same company that created Final Fantasy VII,, a game asking you to not destroy the Earth, is now thinking of selling their own game, where you are “incentivized,” to take part in systems that do more harm to the planet than good. There have been a lot of lectures about how blockchain technology can be a disaster for the climate, . It seems disingenuous to claim you are working towards a global benefit when we consider how inefficient dominant systems can be and how they can be intentionally energy-gobbling.
It’s a confusing mess that offers no clear suggestions about how Square Enix would implement Matsuda’s letter. It is a very uncomfortable feeling to be so charmed by Endwalker which offers a strong message of hope for tomorrow, but the game’s publisher puts its weight behind NFTs. The reason Square Enix continues to cite as the cause of FFXIV’s server problems is not due to a single supply chain problem. However, scrambling for the same technology makes the problem worse.
