Minecraft and GTA could change their minds on blockchain, according to a GameFi executive

While several mainstream game studios have taken a noticeable step back in integrating blockchain technology, three blockchain gaming executives say it’s only a matter of time before they change their minds.

In July of last year, Mojang Studios, developer of Minecraft, announced a ban on NFTs and blockchain technology.

In November, Rockstar Games updated their website to stipulate that fan-operated servers for Grand Theft Auto V can no longer use crypto assets.specifically non-fungible tokens (NFTs).

Walter Lee, director of gaming growth at BNB Chain, argues that the ban is more related to NFT activities than blockchain technology in general and he believes that once there is “more regulation” to ensure the safety of players, major studios will move closer to the technology..

“There is still a lack of education and regulation around Web3; therefore, some users and companies remain skeptical about the benefits and scams that can often be associated with it,” he said..

Mojang Studios pointed to rug-pull surrounding certain third-party NFT integrations as reasons for the ban.along with NFT laundering operations and issues surrounding digital ownership.

Lee thinks that Gamer demand will eventually tip the scales towards blockchain technology in mainstream gaming.

Having said that, some gamers have a love-hate relationship with cryptocurrency, especially when NFTs are involved.

French gaming giant Ubisoft Entertainment was forced last year to backtrack on plans to integrate NFTs into its games after backlash from players.

An October survey by blockchain entertainment provider Coda Labs revealed that traditional gamers weren’t fans of cryptocurrency or NFTs in general, although they didn’t seem to be as bothered by NFTs used in games.

The average perception of gaming NFTs based on a 2022 survey. Source: Coda Labs

“If player demand for blockchain integrations increases, they are likely to revise their policies,” Lee argued..

Grant Haseley, CEO of mobile and Web3 game development company Wagyu Games, told Cointelegraph that it takes just one success story for widespread adoption:

“AAA studios will change their minds when they start ceding market share to Web3 games. It will be enough for a Web3 game to explode in popularity for the others to take off.”

According to Hasley, the doubts of large companies about their adoption are due to the fear that they will undermine the current business model, according to which “the consumer pays strictly for entertainment”.

“The mobile gaming market, for example, has passed $100 billion and is trending upward,” Haseley says.:

“If you can make a game on the fly and still be profitable without changing your model, why would you consider something radical that could have lasting effects on your consumer base?”

Justin Hulog, studio head at Immutable Games Studio, shared a similar perspective, explaining that because NFTs and cryptocurrencies fundamentally transfer ownership of digital assets from companies to players, it is not attractive for mainstream adoption.

“GTA V became the most profitable entertainment product of all time, and it’s no secret that a fairly significant part of this profit is the result of microtransactions. that contain in-game currencies,” he said.

“Microsoft also introduced microtransactions to Minecraft some time ago; It’s understandable that both companies want to maintain control over their in-game economies for financial reasons,” he added..

According to a 2020 report from market research firm Junpier Research, loot boxes and other items related to microtransactions will bring video game companies USD 20,000 million in 2025.

Loot boxes and other microtransactions are expected to bring video game companies $20 billion in revenue by 2025. Source: Juniper Research

“In any case, this can be interpreted as Both companies recognize that NFTs and cryptocurrencies are real-world assets with associated value that could threaten their business model,” Hulog says..

While he thinks it’s “certainly a possibility” for mainstream studios to embrace blockchain technology, he thinks they “will probably start with something like adding support for cryptocurrency as a payment method for their games and services.”.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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