Why is Sega Corp Exiting the Blockchain Gaming Industry?

Photo - Why is Sega Corp Exiting the Blockchain Gaming Industry?
Sega Corp., a behemoth in the Japanese gaming industry, is stepping back from significant investments in blockchain games. They're costly and uninteresting, opines the company's COO, Shuji Utsumi.
Utsumi is recognized as the executive who paved the way for the Sony Group Corp's PlayStation's success. His decision to stop the development of Sega Corp.'s proprietary Web3 games sends a disheartening signal to the whole blockchain gaming sector. For context, the manufacturer carved its name by introducing revered games like Sonic The Hedgehog and Yakuza. 

Interestingly, just last September, Sega proclaimed grand plans to roll out Play-to-Earn games supported by NFTs. The expectation was that developers would craft new offerings on the Oasys blockchain, powered by the Proof-of-Stake consensus algorithm. The Japanese giant was predicted to announce the launch of its innovations this year. However, as we observe, Sega's developmental trajectory has taken a dramatic turn.
The action in play-to-earn games is boring. What’s the point if games are no fun?
Utsumi voiced his thoughts to Bloomberg.
He also stressed that he intends to maintain a clear distance between his top franchises and external blockchain projects. The rationale: apprehensions about the potential devaluation of these fringe products' content.

Crypto aficionados and P2E devotees are understandably upset to hear such assertions from a juggernaut of the gaming industry. A slight solace might be the events that unfolded just days after Utsumi's remarks. 

Particularly, the South Korean firm Line Next disclosed its acquisition of a license for one of Sega's highly sought-after gaming IPs, intending to transform it into a Web3 game. Line Next, specializing in NFT ecosystems, is a subsidiary of Line, a key player in the mobile messaging exchange domain.
Game Dosi

Game Dosi's credo: “Gamer first, Web3 Next!” Source: game.dosi

The impending game will be built on the Game Dosi platform. It's set to support NFTs, digital payments, and promotional activity as part of the strategy for blockchain game proliferation devised by Line Next.

At present, Game Dosi hosts six games. These include the shooter Frame Arms Girl Dream Stadium, the fantasy-themed card game Project GD, and the clicker Sweet Monster Guardians, among other projects. These projects offer the possibility to acquire tokenized attire, in-game commodities, and characters.
Through this partnership, Game Dosi will provide web3 content that anyone can easily enjoy, including Sega fans,
stated Youngsu Ko, CEO of Line Next.
Well, it seems we can only hope that the South Koreans won't take the harsh comments from Sega's top management to heart. However, it's difficult to believe that a Web3 partnership with someone as skeptical of blockchain as Shuji Utsumi will yield quick results for Line Next.