Konami Adopts Avalanche Blockchain – Unveils NFT Solutions for Businesses at IVS CRYPTO 2024 KYOTO

Konami Digital Entertainment has adopted the Avalanche blockchain to make its internally developed NFT (non-fungible token) solution platform available to external companies. This announcement was made on June 20, 2024, at IVS CRYPTO 2024 KYOTO.

Konami Digital Entertainment, a subsidiary of the Konami Group responsible for game development, has integrated the public blockchain Avalanche into its NFT solution, “Resella.” This move aligns with the broader trend among major Japanese gaming companies, including Sony Group and Square Enix Holdings, which are actively researching and developing Web3 games based on blockchain technology.

In recent years, the development of “Play-to-Earn (P2E)” games, where players earn tokens through gameplay, has surged, particularly among overseas startups. This has led to a rapid increase in players driven by speculative motives. The focus now shifts to how established gaming companies can develop sustainable Web3 games that are enjoyable in their own right.

By adopting Resella, companies providing gaming or consumer services can design, issue, and sell NFTs. Additionally, they can establish a marketplace within their Web3 services where users can trade NFTs.

For consumers, there are significant benefits. Users do not need to set up external Web3 wallets or possess specialized knowledge of cryptocurrency transactions. Transactions can be conducted in Japanese yen. Konami also plans to expand the use of Resella internationally.

NFTs are unique tokens with individual characteristics and varying values. In contrast, fungible tokens (FTs) are valued based on quantity and are regulated as cryptocurrencies under domestic law.

Konami is well-known for long-running hit titles such as the card game “Yu-Gi-Oh!” and baseball games “Powerful Pro Baseball” and “Pro Baseball Spirits.” The soccer game “eFootball” (formerly “Winning Eleven”) also enjoys widespread popularity.

The Konami Group generates annual sales of approximately 360 billion yen and has a market capitalization of 1.6 trillion yen. It ranks behind major listed gaming companies in Japan, such as Sony Group (13 trillion yen in consolidated sales, with 4.27 trillion yen from game and network services), Nintendo (1.67 trillion yen), and Bandai Namco Holdings (1.05 trillion yen).

Digital entertainment, which includes blockchain-based Web3 game development, accounts for 70% of Konami Group’s revenue.

In addition to Resella, Konami announced a Web3 project named “PROJECT ZIRCON” last year. This project involves creating a new game set on a fictional planet in collaboration with users, who form a community similar to a DAO (decentralized autonomous organization) to design and develop the game with Konami.

Source: Konami