# Blockchain Gaming with NFT Integration

> Blockchain gaming enables players to own and trade their in-game items as NFTs, giving them real control over their digital assets. Square Enix started its first NFT projects in gaming in October 2021 and plans further investments in blockchain games. The technology creates decentralized game economies and new play-to-earn models where players can earn cryptocurrencies or tradeable NFTs through gameplay.

**Sector:** Tertiary sector · **Industry:** Software development · **Organisation:** Verschiedene (z.B. Ubisoft, Square Enix) · **Maturity level:** Pilot

Canonical URL: https://www.sapientblock.com/en/use-cases/verschiedene-spielassets-sicher-handelbar-machen

## Documentation status

- **Project status:** Pilot
- **Evidence:** Evidence medium
- **Editorial review:** Ufuk Avci, 15 April 2026

## Description

Square Enix President Yosuke Matsuda published a New Year's letter in January 2022, in which he extensively discussed NFTs and blockchain gaming and announced strategic investments in blockchain game studios. JP Games reported on this in detail. Square Enix is the developer of Final Fantasy, Dragon Quest, and Kingdom Hearts — three of the most well-known game franchises in the world.

Matsuda's argument: traditional players trade in-game assets on grey markets — Square Enix had no control and no revenue. NFT-based assets legalise and monetise this market: Square Enix can receive royalties on every secondary sale (e.g., 5% of each NFT sale). Players gain true ownership and liquid assets. The NFT game asset concept goes beyond Axie Infinity: AAA game developers like Square Enix can combine high-quality gaming experiences with true ownership. Challenge: after the NFT market crash (2022-2023) and negative community reactions, Square Enix reduced its blockchain ambitions and sold some Western studios. In 2023, Square Enix sold Crystal Dynamics (Tomb Raider) and Eidos Montreal (Deus Ex) — partly to free up resources for blockchain investments. The concept remains relevant: players who invest hundreds or thousands of hours in games have legitimate ownership claims to their assets.

## Benefits

- Game developers unlock new revenue sources through NFT sales and transaction fees on integrated marketplaces.
- Gamers can monetise their playtime and transfer digital assets between different games.
- Players gain true ownership of their in-game items through immutable NFT storage on the blockchain.
- New play-to-earn models enable players to earn real income through gaming activities.
- Decentralised marketplaces create transparent and secure trading environments for digital assets.
- Blockchain developers benefit from the growing demand for specialised skills in an expanding market sector.

## Challenges

- Companies must invest significant resources in training their developer teams and navigate complex legal frameworks for NFT trading.
- The high technical complexity of blockchain integration requires specialised expertise and significantly increases development costs.
- Scalability challenges and high transaction costs can impair the gaming experience and lead to negative user reactions.
- Developers must continuously learn new blockchain technologies and adapt to rapidly changing regulatory requirements.

## Technology foundation

Blockchain gaming uses public blockchains like Ethereum to store in-game items as immutable NFTs and employs smart contracts for automated game mechanics. This technology is suitable because it enables decentralised markets for digital assets and guarantees players true ownership of their items.

## Sources

- [Square Enix Präsident sieht Potenzial in NFT und will in Blockchain-Games investieren](https://jpgames.de/2022/01/square-enix-praesident-sieht-potenzial-in-nft-und-will-in-blockchain-games-investieren/)