Sega, a once vocal advocate for GameFi and blockchain-based games, is reportedly exiting the sector, as per a Bloomberg report. Shuji Utsumi, Sega's co-Chief Operating Officer, expressed in an interview with Bloomberg that the gaming titan is now skeptical about the technology and will be scrapping plans to create its own blockchain games. Utsumi questioned the potential of this technology in the gaming industry and criticized play-to-earn games as dull.

Despite previously stating that it would keep some of its most popular games and IP away from blockchain, Sega still plans to permit third-party developers to create blockchain games. Last year, it revealed that it had entered into a contract with a development company named Double Jump Tokyo to create blockchain games based on its less popular IP.

Sega has always been wary of the appeal of blockchain gaming, stating at its entry into the field that it would withdraw if it was seen as a mere money-making scheme. Sega is an investor in the Asia-based crypto fund IVC, which actively invests in GameFi projects. Several Sega executives attended IVC's recent IVS crypto conference in Kyoto, Japan.