Independent cloud gaming company Blacknut has announced it has received a strategic investment from Square Enix. This investment will support Blacknut’s R&D efforts on cloud gaming technologies. The company aims to provide B2B focused solutions for cloud gaming.
It was not disclosed how much Square Enix invested in Blacknut. Previously, the Japanese game giant sold three studios and some IPs to Embracer Group. The investment was the first aggressive step toward the company’s four-stage 2022 plans.
With this investment, Square Enix wants to expand its presence in the cloud gaming space. One of the four key areas mentioned in President Yosuke Matsuda’s New Year letter is cloud gaming. Blockchain and Web3 games are also mentioned in this letter. On the other hand, the Japanese gaming giant says it will not rush to invest in blockchain and will use its existing capital to “develop the digital entertainment segment.”
For Blacknut, this investment represents a significant opportunity. Instead of competing with Console and PC giants currently serving in the field of cloud games, the company wants to offer more titles to the mass market by agreeing with game developers.
Blacknut CEO Olivier Avaro says:
“We are very proud to welcome Square Enix, a company that’s genre-defining franchises continue to win over generations of gamers. It’s decision to invest in Blacknut is a real endorsement of our vision, technology, and market approach.”
“Square Enix understands the potential of cloud gaming, as players continue to transition away from physical formats, finding new ways to deliver disruptive gaming experiences from the cloud.”
Hideaki Uehara, Director of Business Development at Square Enix, adds:
“Blacknut is a company at the forefront of cloud gaming, with a unique combination of technical expertise and a vision for the future of gaming. We are excited by the potential of cloud gaming, and this partnership will allow us to stay on top of new developments in the space, as well as expedite our future growth.”
Blacknut will continue to form strategic partnerships with publishers and developers. The investment will help the company expand its gaming portfolio. The games that Blacknut will offer will be easily played from many platforms, including web browsers.