Gamers Hate Gaming NFTs But the Long-Term Impacts are Irresistible

NFTs have captured the public’s imagination over the past two years. Ironically, there’s been pushback from one of the primary communities that could benefit from NFT integration – gamers.

It’s easy to understand the anti-NFT sentiment among gamers. Players have seen their hobby increasingly riddled with minefields of microtransactions and loot boxes over the past decade.

Gaming NFTs may appear to further entrench predatory monetization at first glance. However, this is exactly what gamers don’t get about NFTs.

In Its Current State, Gamers Are Right to be Wary of NFTs

Gamers aren’t investors. Gamers won’t pay thousands of dollars to access a game, and they aren’t interested in speculating on nascent digital assets. Players want to enjoy a seamless gaming experience - something NFTs have yet to provide.

In its current state, web3 gaming is an investment vehicle – which is why some refer to current blockchain gaming as “crypto staking with more steps.” That being said, NFTs will open the floodgates for new utility within gaming and ultimately benefit gamers far more than the current landscape of in-game items.

While gamers are right to be wary of NFTs, they should be aware of the long-term impact the technology will have in gaming and embrace NFTs with open arms.

Taking Back Ownership with NFT Gaming

The gaming industry recorded an estimated $194B in revenue over 2022, despite an arduous global climate. Microtransactions alone account for $67.94B – roughly 30% of the entire market.

It’s clear that gamers are happy to outlay significant capital to flex in-game assets with their online identities. However, these don’t come with true digital ownership.

Once you stop playing a game, your hard earned assets disappear with it. Further, these are temporary assets. Dollars spent on assets in one edition are rendered useless once a later edition arrives.

Take Call of Duty for example. What would happen if the massively popular first person shooter experienced downtime or the franchise drew to a close? Players would be left empty-handed – despite having sunk hundreds of dollars into in-game assets

NFTs, on the other hand, last forever.

**Even if the game should die, tokenized assets would still be tradable on the blockchain. Users have full ownership of purchased assets under this design, regardless of what happens to the game in question. It’s also safe to assume that general NFT collectors would have a strong appetite for NFTs representing rare in-game items. Simultaneously, NFT creators are incentivized to make digital items interoperable cross-game, creating more value for players.

And this utility extends far beyond simple commerce. Owners could use their acquired items to amplify their social profiles as elite gamers. There’s a popular battle cry among NFT enthusiasts – “I am my NFT and my NFT is me. In much the same way, gamers are heavily invested in cultivating their online identities.

Enhancing Interoperability With NFTs in Gaming

At present, games are siloed by centralized servers. This fragmentation prevents gamers from using their hard-earned assets in other games once they move on.

Studios could reduce the current fragmented experience for gamers by implementing NFTs and designing interoperable systems. This would result in an open, expanded ecosystem where gamers can transfer their assets and reputation between games.

This technology’s diversity carries massive potential for creating a global and inclusive gaming experience. Game publishers should easily recognize the many benefits of a vastly increased network effects.

Transparency and Provenance

Purchasing an in-game item without NFTs is currently an opaque process.

When buying a skin in Call of Duty, for instance, there are no mechanics that objectively display scarcity, rarity or history of ownership.

With NFTs, gamers could freely access these metrics to inform their purchases. Viewing ownership history could in some cases add substantial value to an item. For instance, an item previously owned by an elite gamer like Ninja or PewDiePie would naturally hold far higher value than similar items for sale.

Further, being able to access scarcity and attribute rarity would offer gamers increased insights into the traits and skills they desire.

Reducing the Chokehold of Centralization

Gaming has evolved into an online, social experience. While it may appear that hundreds of studios are producing AAA titles independently, these are all owned by a total of seven major corporations.

This centralization is the polar opposite of gaming’s global, interactive nature.

These slow moving monoliths remain hesitant to adopt and integrate NFTs.  This opens vast opportunities for indie studios and aspiring game developers to gain significant market share.

The NFT market is projected to grow to $8B by 2027 - with a global user penetration of only 0.8%. Those who take advantage of this nascent technology are primed to reap significant benefits in decades to come.

Integrating NFTs in Video Games is a Positive Inevitability

The possibilities offered by NFT gaming are near-endless. Blockchain-based games like Yuga Labs’ Dookey Dash illustrate the vast benefits creators and players can reap while still enjoying an immersive gaming experience.

Origin Protocol has been tirelessly building branded NFT marketplaces to cater for the inbound wave of NFT innovation in gaming. By offering bespoke, project-specific platforms, Origin is laying the foundations for robust game-asset transacting.

These platforms are complemented by in-depth analytics dashboards, giving users insights into owners, listings, and more.

If you are a creator or brand interested in learning more about Origin Story and Polygon, contact us at [email protected].

FAQs

How can NFT based blockchain technology benefit gamers?

NFT integration allows players to gain full ownership of their digital goods. This allows players to use and trade their in-game assets even if the game is discontinued.

How can NFT integration improve the social gaming experience?

NFTs can bridge gaming worlds by allowing users to transfer their assets between games.

This article was published by Origin Protocol. Origin Protocol has an interest in the success of NFTs in gaming, as it creates infrastructure related to NFT marketplaces for gaming, music, real estate, and beyond.