YGG Japan Secures $2.95 Million in Funding from Square Enix, SEGA, and Other Web3 Firms

Square Enix and Sega have invested in YGG Japan, a sub-DAO of Yield Guild Games aimed at leading the “play to earn” movement in Asia.

Square Enix and SEGA invest in YGG Japan to foster Web3 game developments

YGG Japan, a subsidiary of Yield Guild Games (YGG), has completed a private round of $2.95 million with participation from 18 companies including Square Enix, SEGA and Gate.io Labs. YGG Japan has raised a total of approximately $5.75 million through this round of funding.

According to YGG Japan’s official statement, many Japanese gamers who are new to Web3 often have to pay a hefty entry fee to participate in NFT games. Also, there is a lot of misleading information on the market, and newbies can fall for scams.

In order to solve these problems, YGG Japan will use the newly acquired funds to develop tools and build an environment for their spread. This includes using “GabeeTown”, a native Web3 game hub for players to access authentic crypto games. The team also aims to expand the capabilities of the platform to create a league of professional gamers in the blockchain space.

In addition, YGG Japan will recruit skilled personnel to roll out blockchain games in Japan, mainly product marketers, advertising operators, engineers, product managers, token economists, BizDev, and PR officers. The team will continue to develop products and services that remove barriers to entry into blockchain gaming.

Square Enix Blockchain Entertainment Division General Manager Keisuke Hata said, “Games that use Web3 technology have the appeal of being able to provide unprecedented gaming experiences by recording digital assets, activities, and achievements in wallets.

“However, player onboarding often requires complicated procedures, high barriers to entry to play, and marketing and promotion are challenges. We see this as an important partnership that includes design philosophy and mass adoption.”

Shuji Utsumi, Executive Vice President of SEGA Corporation, said, “YGG Japan will continue to support the industry megatrends that we have been paying attention to blockchain games and the Web3 movement.”