Introduction
The gaming industry is expanding across several industries, and there are no signs that it will soon stop. However, despite the industry’s growth in terms of both size and scope, it still takes a unilateral approach to everything. Its unilateral character is justified by the fact that “developers” benefit financially from a variety of in-app purchases and other game-related features. However, blockchain-based games and dApps are revolutionizing this method. 👏🏻
The impact of blockchain on gaming
In the conventional setup, a player spends a lot of money on the setup and other items to boost the overall skill. Most of the money that players spend goes toward making in-game purchases that either unlock additional gaming content or are only available within the game. But the usefulness and applicability of this type of purchase are pretty much limited.
Blockchain introduces dApps, or blockchain-based game apps, in this situation, allowing players to make more flexible in-app purchases and other gaming transactions. The main justification for employing an NFT is that they are uncommon and distinctive, making them the ideal choice to be used in a variety of gaming scenarios. 🎮
NFTs may be tailored in such a manner that they aren’t limited to the specific setting where they were created, but rather they can be cross-utilized across numerous sectors, resulting in the growth of many gaming economies and making it easier to create a cooperative gaming environment.
Reforms in the gaming industry
NFTs have previously been deployed in a number of industries; they are not only dominated by gaming. They were already created to stand in for a variety of real-world assets, including artwork, real estate, and other things. However, its three qualities—Non-Fungibility, Rarity, and Indivisibility—are the biggest factors of NFTs’ popularity. 😌
The importance of NFTs in gaming
While many other networks enable NFT, they are mostly deployed using the Ethereum (ERC-721) token standard. The following are the main benefits of NFTs in gaming:
- Ownership — In traditional gaming, consumers had the option to make an in-app purchase, but because the purchase was tied to the game itself, it was only made once. On the other hand, when acquiring NFTs in a video game, the owner gains complete ownership of the transaction. The user may use their purchases in a variety of games that support them, not only in one particular game. In addition, other gamers on the network itself can buy the NFT items. 😎
- Immutability — n a typical arrangement, the user had no choice but to lose their purchases if a game stopped working; however, all NFTs in the gaming industry don’t have this concern because they are not “stuck” with a specific game and may instead be redeemed by the player. Also, other gamers can buy these items and resell them to others.
Other than that, NFTs cannot be altered or reproduced, protecting the collectible’s uniqueness. Permanent records, which are created immediately after an NFT purchase, will assist with this.
Why do publishers of video games want to sell NFTs?
It is understandable that publishers of video games would want to promote NFTs. Gamers have already been conditioned to accept the idea of digital ownership thanks to sales of in-game objects, which are used to fund the majority of contemporary games.
In addition, during the past ten years, the cost of producing “triple A” video games has increased. Ubisoft allegedly spent $100M on Assassin’s Creed IV: Black Flag, compared to $20M on the first Assassin’s Creed. Final Fantasy XIII, according to Square Enix, cost $60M to make, whereas Shadow of the Tomb Raider cost about $100M. 🤑
With an average selling price of $60, these rising prices have made it challenging for video game publishers to recover their development costs. To maximize income per user, they are being forced to release additional downloadable content packs and paid in game content. Therefore, it makes logical sense for game companies to create NFTs as unique collectibles that can later be sold on external marketplaces.
Are gamers really interested in buying NFTs?
Sadly, it seems that players aren’t as excited about this strategy. Fewer than 100 of the thousands of NFTs that Ubisoft produced and distributed for free to users of Ghost Recon: Breakpoint were later sold by those users, which shows a low level of enthusiasm. Konami is said to have made roughly $150,000 from the sale of its Castlevania NFTs, but that’s not much for a business that is anticipated to make $2.31 billion in revenue this year. 😲
Square Enix’s plan to chase NFT-based games by selling its Western studios for around $300 million caused considerable controversy. It may believe that investing in NFTs is a lower-risk approach than supporting triple-A titles like Shadow of the Tomb Raider, which significantly underperformed against its own sales projections, but it seems unlikely that NFTs will be as profitable as its divested franchises.
Most game companies will create NFT collections
As retail investors poured money into blockchain-related assets last year, NFTs appeared to be the next big thing. The values of cryptocurrencies and NFTs, on the other hand, have dropped during the previous six months as a result of investors abandoning those risky assets due to inflation and increasing interest rates.
The weaker “altcoins” and the majority of NFTs might easily be eliminated by this continuous market rotation, which may last for the foreseeable future. The majority of video game publishers might be tempted to simply drop their NFT projects and continue with ordinary DLCs and in-game items in their place. 👀
What will NFT gaming look like in the future?
For a number of reasons, many individuals believe NFT games to be the future of gaming. The following are some of the main advantages of NFT gaming:
- In-game purchases in conventional games cannot be carried over to other games. In NFT gaming, players retain ownership, allowing them to keep their purchases and assets, sell them to other players, or move to certain other games. ♻️
- The NFT in-game purchases are supported by the irreversible records included in the blockchain network in an effort to provide unique value and authenticity. Each NFT’s amount and uniqueness are verified by this decentralized public ledger, making them valuable as collectibles. 💰
- Even when the game is ready to close, gamers do not necessarily need to worry about their in-game purchases. NFTs may be used in various games because they are built on the blockchain and are independent of any specific gaming platform.
Conclusion
Although NFTs appear to be a promising technological advancement for the game industry, they are still in their infancy. It must be widely adopted in all markets. Additionally, using NFTs raises the danger of speculating on different assets, which leads to the emergence of black market profiteering. Despite these obstacles, the industry doesn’t intend to let them sink; rather, it is developing innovative approaches to transform blockchain technology inside the gaming industry. 🤖
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