The Pioneer of GameFi with 2.7 Million Users Across 100 Countries - Interview with Naoto Yoshida

DEA, which operates the GameFi platform business, was founded in Singapore in August 2018.

It operates the GameFi platform "PlayMining", the NFT marketplace "PlayMining NFT", the metaverse project "PlayMining Verse", and its own cryptocurrency "DEAPcoin (DEP)". Its vision is to "create a world where people can live and play".

『Digital Entertainment Asset Pte.Ltd.』

Nagatomo: You created the world's first Play to Earn economic zone. What was the trigger for the idea?

Yoshida: There are two simple reasons. One is that in games like Dragon Quest and Final Fantasy, you get coins when you defeat monsters, and I thought as a child, "If these coins were money, I could live my life playing games all the time."

The other is that in 2016, former Sony Chairman Nobuyuki Idei told me, "Study blockchain. It is a technology that brings value to data, so it has the potential to change the times just as much as the emergence of the Internet."

I didn't really understand it at the time, but as I studied it, I thought about what would be the most valuable thing for humanity if it brings value to data, and I thought it would be "money."

When I started studying, there were about 3,000 types of cryptocurrencies, including Bitcoin. Naturally, I was shocked because I had thought that it was wrong to create money myself until then.

To put it in extreme terms, I thought it would be an amazing world where things like child banknotes would become valuable and many people would trade them. The creation of various exchanges would give value to things like child banknotes.

So I got the idea that I could make a living by using these child banknotes in games. In short, it's like realizing a childhood fantasy.

Nagatomo: Could you share some episodes from your past where you faced significant hardships or challenges?

Yoshida: I've faced hardship and difficulty in everything I've done up until now (laughs). At first, no one understood the idea of ​​distributing money in games. The first person to understand was our co-representative Yama-chan (Co-CEO Yamada Kozo). I think he understood the concept very well at the time.

We are the first in the world to issue our own tokens, give them value, have people buy NFTs to play games, and create a fully integrated gaming economy that also serves as a marketplace.

Being the first in the world means that there is no precedent, so even when it comes to distributing tokens, we didn't know how to do it. For example, if you pay a lot of rewards when you win a lot in a game, the economy won't work, and if you pay too little, users will become dissatisfied.

I felt that it was difficult to create an unprecedented business model, even if I calculated it many times and created the logic. That was difficult.

I also had no idea how to list tokens on various exchanges. Looking back, when we listed "DEAPcoin (DEP)", we traveled to various countries around the world for over a year to negotiate with various exchanges.

There was no precedent for creating blockchain games, so both engineers and producers were feeling their way around. In fact, we remade "JobTribes" twice before it became what it is today. It was that difficult.

Nagatomo: Do ​​you feel there is any difference between the regulations when you actually started the business and the regulations now?

Yoshida: I have the impression that regulations in Japan have become really lenient. Japan may be more lenient than Singapore now. Accounting is strict all over the world, but Japan's tax situation is particularly bad.

However, the revision of the end-of-period market valuation of self-issued tokens has made it easier for startups to do Web 3.0 business involving token issuance.

However, accounting issues remain. This is because large Japanese companies need the understanding of auditing firms to enter the Web 3.0 business. This is difficult.

I don't think the Web 3.0 business will scale if it is limited to startups only. Web 3.0 businesses have many financial elements and require trust and safety, so it is essential that major listed companies enter the business.

If Web 3.0 is to be Japan's national strategy, we should create a regulatory environment that makes it easier for larger companies to enter the business.

Nagatomo: I believe you've produced many hit titles so far, but how do you come up with ideas for game content?

Yoshida: I created games in the 1990s for a company called Grams. Our first title was a computer game for NEC's PC-98. It wasn't just a game, we also produced and included an original drama.

After that, we created titles that were popular with core gamers, such as "Quo Vadis" for the Sega Saturn and "Alice in Cyberland" for the PlayStation, which were not huge hits. "Quo Vadis" was ranked number one in sales for the Sega Saturn.

At the time, the quality of the anime we produced was said to be even better than the games. That's because we also had an anime studio within the company. I loved making games, but I loved writing stories.

So I think in the end, I wanted to make stories. I wanted to make RPGs and simulation games with amazing quality animation.

The games we're making now are casual games. With casual games, we let the creators make what they want. We don't have any particular preferences for game action, either.

I am particular about stories and dramas, and if I'm not happy with them I'll ask to remake them. But with our current games, I leave it all to the young producer.

I feel rewarded by creating new entertainment that no one has ever experienced before

Nagatomo: You have already listed three companies in Japan. What is your motivation for taking on the Web 3.0 field?

Yoshida: My motivation for taking on the Web 3.0 field was that I wanted to return to the entertainment world. Also, I thought that the time when people could make a living by playing games, which was only a fantasy, might actually come true. This is still my biggest motivation.

I think that being able to make a living from games has the destructive power to turn the game industry upside down in a sense. Games and entertainment are things that you pay to experience, but if they become things that you receive money to experience, it will be the exact opposite business model.

It's not often that you find an idea that can turn an entire industry upside down. I think that normal games and social games will remain, of course.

However, I think that the proportion of Web 3.0 games will increase in the future. I feel rewarded by creating new entertainment that no one has ever seen or experienced before.

Nagatomo: What do you think is the way for Japan to win the world in the Web 3.0 field?

Yoshida: I think we should expand globally, focusing on the entertainment field. Japanese manga, anime, and games have already secured a certain position. If we can introduce the token economic sphere of Web 3.0 into that, I think Japanese companies can gain a large share.

Game titles by DEA

"JobTribes"

Announced as the first installment of "PlayMining", this is an occupation-themed NFT card battle game. It features unique characters personified from all kinds of occupations, and the points earned in the game can be exchanged for "DEAPcoin".

"Cookin' Burger"

As a burger shop clerk, you take orders from various types of customers and aim to improve the reputation of the shop by serving food accurately and quickly in a multitasking cooking game. You can increase the reputation of your shop through gameplay and earn "DEAPcoin" through "rankings" based on the reputation.

"Graffiti Racer"

A new type of "coloring x racing" game where you compete while collecting scores with characters you have colored yourself. By acquiring "sheet NFTs" that serve as the base for coloring and coloring characters, you can enter races and earn "DEAPcoin" depending on your ranking in the race.

"Menya Dragon Ramen"

A unique game that combines RPG and ramen sales simulation in which you defeat monsters in dungeons to obtain rare ingredients, and then sell ramen using the ingredients you obtain. You can earn more DEAPcoins by improving your ingredients and recipes.

"Lucky Farmer"

A coin pusher game with a farm motif. You can win a lot of medals on the slots and roulette in the game and exchange them for items, or use the newly introduced "pets" to get an advantage in the game and participate in the "rankings" that are held regularly to earn "DEAPcoin."

Profile

◉ Naoto Yoshida

Digital Entertainment Asset Founder & CEO

After working in magazine editing, he launched the game and animation company Grams at the age of 28. He was one of the first to enter the digital animation industry at the dawn of the digital age, but developed cancer at the age of 32. At the age of 34, his company went bankrupt, and he also filed for personal bankruptcy, but he recovered and founded a total of three listed companies in the human resources, content, and media ad tech businesses. He currently serves as the chairman of the board of directors of Iole Inc., which is listed on the Tokyo Stock Exchange Growth Section. He is convinced that the development of blockchain will dramatically change the entertainment industry, so he returned to the entertainment business for the first time in 20 years. Graduated from Rikkyo University's Faculty of Economics.

◉ Hiroki Nagatomo

Columnist

Born in 1988. He started a company while studying at Yokohama City University. He operates a human resources dispatch company with major telecommunications carriers as his main clients. His interactions with wealthy people from overseas whom he met while traveling to more than 30 countries led him to come into contact with crypto. He participated in the launch of "BitLending", an asset formation platform for the Web 3.0 era. He is following the current state of crypto using his unique network. His hobby is photography. As a triathlete, he is challenging IRONMAN RACE in various countries around the world.

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