EG Inc., a joint venture by Medicom Toy and Mindworks Entertainment, Launches | MEDICOM TOY
MEDICOM TOY
A New Character Business in the Digital Realm, Forged by Two Giants
Medicom Toy and Mindworks Entertainment have launched a new initiative in the digital space. Now that the speculative buzz around "NFTs" has subsided, what is the background and strategy behind this venture, born from a desire to embody their true essence?
Text by SHINNO Kunihiko | Photograph by YOKOKURA Shota | Edit by TOMIYAMA Eizaburo
First Release: Selling "Samurai Steam Polka" NFTs
In June 2023, Medicom Toy and Mindworks Entertainment announced the establishment of EG Inc., a joint venture that would engage in crypto art projects, metaverse content, and digital licensing activities. This announcement garnered significant attention both within and outside the industry.
The new company is named "Electronic Garden - EG," derived from the concept of discovering and nurturing new talent in the digital field. The first release will be an NFT sale of "Samurai Steam Polka," a new work by STEAM POLKA, an artist active in the figure scene.
Why enter the NFT space now? And what is the vision that EG aims to realize? Ahead of EG's full launch, we spoke with Medicom Toy's Representative Director, Ryuhiko Akashi; Mindworks Entertainment's Representative Director and EG's Representative Director, Kensuke Kondo; and STEAM POLKA creator, KAWAI.
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MEDICOM TOY Established in 1996 with the concept of "creating what we want," Medicom Toy plans and manufactures character figures across a wide range of genres. They have released numerous collaborations with artists, brands, companies, and characters from Japan and abroad, including the "BE@RBRICK" introduced in 2001.
Mindworks Entertainment Founded in 2004 as a character production company, Mindworks Entertainment operates under the motto "Creating characters loved for 100 years." They produce works by emerging creators and manage overseas characters such as "Clifford," "Care Bears," and "Popples."
STEAM POLKA STEAM POLKA sells original figures at events, blending a steampunk aesthetic with a fairytale worldview. Notable works include "Diving Suit Zenmai-zukin" and "Diving Suit Chi-sha," which were also released as capsule toys in the VAG (VINYL ARTIST GACHA) series, planned and manufactured by Medicom Toy.
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It Might Be Incredibly Interesting to Start Now, Amidst the Rubble
—Could you please tell us about the impetus behind the establishment of EG Inc.?
AkashiMr. Kondo, your initial proposal came about a year and a half ago, didn't it?
KondoIt was in March of last year.
AkashiThat was precisely around the time when concerns about NFTs were starting to surface, like "Aren't NFTs a bit problematic?" (laughs). Amidst discussions about whether it was okay to proceed now, hearing Mr. Kondo's plan made me think that it might actually be incredibly interesting to start now, amidst the rubble of everything that had collapsed.
Ryuhiko Akashi, Representative Director of Medicom Toy
KondoI'm currently active as a character business producer, but I originally came from the advertising industry. I first encountered digital media around 1994 with the licensing rights for a J.League game. Later, I started a character business at an advertising agency within the Sony Group, and from there, I became independent to establish Mindworks Entertainment.
Kensuke Kondo, Representative Director of Mindworks Entertainment and Representative Director of EG
AkashiWe've also been involved with your company for about 20 years through licensing.
KondoUntil now, my primary role has been as a creator's agent, focusing on physical product commercialization. However, with the emergence of "NFTs," digital licensing went beyond our existing scope of understanding. I realized it would be better to establish a separate company, which led me to consult with Mr. Akashi. The concept is "Electronic Garden - EG," aiming to foster new talent in the digital field, and the company was named EG based on this concept.
AkashiFrom there, when we considered who would be the best creator for our first release, I thought that for a business that combines physical figures with NFTs, KAWAI of "STEAM POLKA" would be the ideal partner, given his career and exceptional creativity.
KAWAII spent about 25 years in the game industry, and in my spare time, I made sculptures and sold my garage kits at an event called Wonder Festival. As soft vinyl and capsule toys became popular, I wanted to try something beyond garage kits. I approached Medicom Toy with a proposal, and they released a capsule toy (VAG). When I was approached about being the first creator for EG, I honestly didn't fully understand what NFTs were. However, after the explanation, it sounded incredibly interesting.
KondoThe crypto art world has a collectible aspect, so I wanted to approach someone who could appreciate its artistic value first. I proposed this to Mr. Akashi because I believed he would best understand the culture of collecting digital data like figures.
AkashiWhen Mr. Kondo presented his concept, I felt it was a project aimed at cultivating a collectible market in the digital space. I thought KAWAI could easily bridge the gap between analog and digital. Given his history of creating a wide variety of works with great flexibility, I was confident it would lead to something fascinating.
KAWAISTEAM POLKA has been a long-cherished project, and I was very happy that many people enjoyed the VAG releases. Initially, I worked with a clay-like material called Sculpey and didn't create digitally. However, as I enjoyed intricate designs, I began to feel the limitations of Sculpey. The advent of "ZBrush," a 3D modeling software capable of creating any form imaginable, greatly expanded my possibilities, and I've been primarily creating digitally ever since.
KAWAI, Creator of STEAM POLKA
KondoYour works have such a deep worldview, KAWAI.
KAWAIIn my case, I create the world first and then design characters that inhabit it, rather than starting with the characters themselves. That's probably why they feel so integrated, as if they truly live there. STEAM POLKA is a town where steam dances like a polka, and the characters live there. For this project, while adapting the visual style to a Japanese aesthetic, I've maintained a sense of unity and kept the feeling of characters belonging to the same STEAM POLKA world.
—What was the inspiration behind the keyword "Samurai" for the first release, "Samurai Steam Polka"?
AkashiThat came from Mr. Kondo.
KondoI find it incredibly appealing when Western elements are reinterpreted in a Japanese style. I thought it would be interesting to apply a Japanese aesthetic to the artwork of STEAM POLKA under the concept of "Samurai," so I proposed it.
AkashiKAWAI has fans all over the world, so "Samurai" is a word that resonates universally, and it's a character that only a Japanese artist could create.
KondoI believe foreigners perceive Japan with a certain sense of mystery. KAWAI has managed to capture that essence beautifully.
AkashiIt was masterful. Initially, I was concerned about whether incorporating Japanese elements into KAWAI's already established worldview would work, but it turned out to be perfectly fine.
KAWAII was also a bit apprehensive before I started drawing, but combining elements like diving suits with ninjas, for example, led to some really interesting creations. Once I began drawing, ideas just kept coming, and I found myself thinking, "Wow, this is incredibly fun!" (laughs). The eight characters currently revealed were selected from over twenty candidates.
A preview of the crypto art pieces planned for sale, "Samurai Steam Polka"
What EG is Doing is Like a Real-Life RPG. We Are Also Players.
KondoAround the time "NFTs" became a hot topic, I was often asked, "What's the value in owning data?" I believe the true appeal of NFTs lies not just in the art itself, but in creating a narrative that extends beyond it. EG aims to build value by crafting stories that say, "Owning this unlocks future possibilities." This, I believe, will be the main focus for future crypto art content. Previously, there were many NFT projects driven by speculation. I imagine Mr. Akashi also received numerous proposals of that nature.
AkashiWe received an overwhelming number of proposals almost daily. I was concerned that an overemphasis on speculation could even damage the integrity of the artists' characters. Therefore, if we were to proceed, I wanted to create a framework where crypto art exists within a larger narrative.
KondoPreviously, the news focused on "This artwork sold for X amount." However, at EG, we want to center our approach on "How to collect." We already have over a hundred "Samurai Steam Polka" characters created, and they are all exceptional.
AkashiThere are numerous variations, including color changes and part modifications.
KondoMany of KAWAI's fans may not be involved in crypto art. Therefore, we plan to create a community within Discord (a communication app supporting text, voice, and video) and explain things in an easy-to-understand manner for NFT beginners, while also developing the project further. That's the sales strategy we're considering.
Overseas, I've seen projects that present roadmaps whose feasibility is uncertain, driving up prices before disappearing. I suspect that created a somewhat dubious atmosphere (laughs). EG aims to be different; by transparently communicating the development process of our content, we want to create a success story as a project that extends all the way to physical product integration. I mentioned this to Mr. Akashi before, but I felt it was quite similar to recent approaches in selling soft vinyl toys. And I thought it would resonate well with Medicom Toy's fans who already purchase art.
AkashiIt's a strange feeling that the sales methods for contemporary soft vinyl toys share similarities with digital product sales in the metaverse. It makes me wonder if this is the trend in sales. Ultimately, I believe we need a sales approach that allows people to take pride in owning graphics that KAWAI has meticulously created. I'm looking forward to seeing how, within the roadmap Mr. Kondo envisions, we can incorporate surprising yet satisfying elements that defy expectations. In a few years, I hope people will be saying, "I own the original Samurai Steam Polka!" and others will respond with, "Wow, that's amazing!"
—So, you're building a roadmap to enhance the value of creators and their works.
AkashiIf selling a single piece and seeing its price fluctuate was the trend about two years ago, what I found interesting about Mr. Kondo's proposal is that what EG is trying to do is essentially a real-life RPG. I feel that we are not only content creators and artists but also players. We present the market with "Here are new items, a new worldview, a new system," and enjoy it together with our customers.
KondoIt's like clearing one dungeon after another.
AkashiThe core mindset that led to "That sounds interesting, let's do it!" is precisely that. To achieve this, we absolutely need to collaborate with truly talented creators; otherwise, we'll burn out. I believe we can succeed with Mr. Kondo and KAWAI. That's the feeling.
KAWAII'm insatiable when it comes to creating characters, so I can produce them endlessly (laughs). In fact, I couldn't keep up with the sculpting on my own.
—Have you always had a strong creative drive since childhood?
KAWAISince I was a child, I loved designing original monsters, and from my teens to early twenties, I was influenced by various sculptors. Shaping things requires skill, which was frustrating at first, but after being rigorously trained in the game industry, I gradually became able to create what I envisioned, leading me to where I am today.
The sculptors I admire continue to produce inspiring works even as they age, and I don't want to be outdone by younger artists (laughs). I've always wanted to expand the product range for STEAM POLKA. However, I had no idea how to go about it, which is why I consulted with Mr. Akashi.
AkashiOur first collaboration was with "Diving Suit Zenmai-zukin" for VAG (VINYL ARTIST GACHA) SERIES 29. For VAG, we receive proposals from creators all over the world. Among them, KAWAI was the only one I met for the first time, saw his work, and made an immediate decision. This has never happened before or since. I thought, "Wow, we've got someone truly remarkable." I was incredibly pleased that someone like him wanted to collaborate with us. I've worked with Mr. Kondo for about 20 years, and this felt like the perfect moment.
—So, the timing was indeed perfect.
AkashiExactly. That's why, as I mentioned earlier, I'm very glad that the somewhat dubious hype around "NFTs" has passed.
EG Aims to Create Many New Approaches to NFTs
—Could you tell us about the future development plans, within what you can disclose at this time?
AkashiRegarding physical figures, they have already been exhibited at our events and by KAWAI himself at Wonder Festival. We plan to integrate these into EG's initiatives, creating a cohesive narrative. We aim to build a production method where these individual points connect to form a line.
KondoFirst, merchandising. We plan to hold real-world exhibition events to build the world. Also, the TRPG (Tabletop Role-Playing Game) market has been gaining momentum recently, so we'll start there and eventually expand into game development. The tweet announcing EG's launch received "likes" from about three well-known crypto art project individuals overseas. This suggests that people in the international community were indeed paying attention to Medicom Toy's moves in the NFT space.
Incidentally, when I tweeted about EG's launch, about three prominent overseas crypto art project individuals liked the post. It seems that people worldwide were indeed paying attention to Medicom Toy's activities in the NFT industry.
AkashiI'm personally excited about how we can structure the future roadmap. I want to do things that are unpredictable and make people wonder, "What are these guys going to do next?" Since I'm not from that industry, I feel that having people without conventional knowledge try new things can lead to more interesting outcomes.
KondoWhen I interact with people in the NFT industry on Discord, they often say, "If you just apply your existing approach, the project might not be interesting. Isn't it better to show something unprecedented?" Although the NFT market is currently in a "winter" phase, those who are serious are genuinely contemplating the future of crypto art. Therefore, I believe we will see a proliferation of NFTs in various forms, driven by free-form creativity.
AkashiI kind of feel like it's similar to mobile payment systems. With such a wide array of choices, the key moving forward will be our sense of selection and the creation of exciting scripts. Now, during this so-called "winter" period, it feels like a good time to establish new rules and forge new paths. It reminds me of when I first started importing and selling toys from overseas. It's very enjoyable.
KondoSince many potential buyers might be new to crypto art, we plan to hold several AMA (Ask Me Anything) sessions using X's (formerly Twitter) Spaces feature to explain the benefits of ownership. We will also provide further explanations on how to create a wallet and purchase Ethereum (a cryptocurrency platform) within Discord. Initially, we are considering a system that allows purchases with a regular credit card to make it accessible for beginners. SamuraiSteamPolka Official X
—Compared to traditional NFTs that require Ethereum, this seems much more accessible.
KondoWe've launched EG's Discord community under the name "EG ART Gallery." In the future, we aim for even beginners to participate in the management, and by collectively enhancing the value of crypto art, the price will naturally increase as a result, even if that's not the primary goal. Based on conversations with crypto art holders, I've found that operating Discord with this perspective is very interesting. EG ART Gallery Discord
AkashiIs it more like supporting a favorite artist, rather than an investment?
KondoYes, that's right. If I say "close to shareholders," it might sound like an investment again (laughs). I've realized that many fans find joy in increasing the value over the long term, rather than selling immediately for profit. There's a concept called "DAO" (Decentralized Autonomous Organization). At EG, we want to create a system through Discord where everyone collaborates to nurture the content. If users desire, we could say, "Let's create theme music for Samurai Steam Polka!"
AkashiIn that case, the ideal scenario would be for a fan who is also a musician to step forward.
KondoThat would be the ultimate outcome. If people within Discord who can compose music or create videos participate, and we produce something great, the value of the NFT itself will increase, won't it? Instead of commissioning someone, we can broaden the content's scope by saying, "We're creating a theme song, everyone gather!" That's truly the ideal scenario.
—I wondered if the company name EG might also imply "easy," suggesting that anyone can participate without overthinking it. Is that correct?
KondoThat's exactly right. In fact, when I work as a creator's agent, I often find myself carrying a heavy burden.
AkashiThose around you also have expectations. "Mr. Kondo will surely provide full production, from management to commercialization." I've seen you looking quite stressed at times because of that (laughs). So, I thought, "Let's approach this project more casually (easy)!" We're nurturing the content we've been entrusted with together, aiming for happiness, so let's not overcomplicate things.
KondoI like the flat, collaborative feeling of creating together.
AkashiEven as we speak now, new ideas are constantly coming to mind. "Since it's a samurai, it needs outfits," or "Creating rival characters would be interesting." I feel that the world of the work can expand in fascinating ways with the freedom and speed that a digital community allows. We want to create an approach that allows fans who were previously unfamiliar with NFTs to easily enjoy and participate.
