• Japanese securities giant SBI and gaming firm Square Enix have announced a crypto gaming M&A deal worth around $53 million.
• The deal will see SBI become the largest shareholder of Gumi, a crypto and blockchain gaming company.
• Both firms plan to list tokens on cryptoasset exchanges and use SBI NFT as a distribution market for acquired NFTs.
Japanese securities giant SBI and gaming firm Square Enix have recently announced a crypto gaming M&A deal worth around $53 million. The two companies have signed a share purchase agreement for Gumi, an up-and-coming crypto and blockchain gaming company, which will see SBI become the largest shareholder with 22.46% voting rights and Square Enix with a 3.01% share.
The two companies have plans to make significant moves in the crypto and blockchain gaming space. SBI stated that it would combine Gumi’s game development and operational knowledge with its own token listing prowess. This would allow the company to list tokens on cryptoasset exchanges such as SBI VC Trade and Bitpoint Japan. In addition, SBI is also considering launching a platform dedicated to blockchain games that would enable it to develop and distribute blockchain games, as well as selling and distributing tokens and NFTs.
As for Square Enix, the company earlier this year said that traditional gaming would not be enough for them to succeed in the future and suggested that user-created content such as non-fungible tokens (NFTs) and play-to-earn crypto titles could be included in future business models. The Gumi move could represent one of Square Enix’s first tentative moves into this space.
Furthermore, SBI also owns an e-sports franchise and its CEO Yoshitaka Kitao is a Ripple board member. In 2019, he claimed that ‘every bank in Japan’ would be using XRP by 2025.
Overall, this M&A deal between SBI and Square Enix is an exciting move into the crypto and blockchain gaming space. It will be interesting to see what both companies come up with in terms of their plans to list tokens, develop and distribute blockchain games, and sell and distribute tokens and NFTs. This could be a game-changer for the industry and could be a great way for both companies to make a major mark in the crypto and blockchain gaming space.