Japanese publishing giant Sega has pulled back on its plans for blockchain and NFT projects.

Speaking to Bloomberg, the company's co-COO Shuji Utsumi said that it would no longer be using these technologies on its big titles as to "avoid devaluing its content." It was also be "shelving plans to develop its own games in that genre, at least for now."

“We’re looking into whether this technology is really going to take off in this industry, after all," Utsumi said.

He says that Sega might eventually decide to become involved in blockchain as it matures.

“For the majority of people in the video game industry, what blockchain advocates say may sound a bit extreme, but that’s how the first penguin has always been,” Utsumi said.

“We should never underestimate them.”

He said that Sega said that it will let blockchain third-parties use its lesser-known franchises, such as Three Kingdoms and Virtua Fighters for NFTs.