While some mainstream game studios have taken a step back from incorporating blockchain technology, three blockchain game executives say it’s only a matter of time before they change their tune.
In July last year, Minecraft developer Mojang Studios announced a ban on NFTs and blockchain technology.
In November, Rockstar Games updated its website to specify that fan-operated servers for Grand Theft Auto V could no longer use crypto assets, specifically non-fungible tokens (NFTs).
Tearing up the NFT world? pic.twitter.com/5bEy5oqtjm
— DeeZe (@DeeZe) July 20, 2022
Walter Lee, Gaming Growth Lead at BNB Chain, said the ban is more related to NFT activity than general blockchain technology and thinks that if “more regulation is in place” to ensure player safety, mainstream studios will heat up to the technology.
“There is still a lack of education and regulation around Web3 so some users and companies are still skeptical about its benefits and the scams that are often associated with it,” he said.
Mojang Studios pointed out concerns surrounding the integration of certain third-party NFTs, along with NFT wash trading and digital ownership issues are the reasons for the ban.
Lee believes that player demand will tip blockchain technology into mainstream gaming.
That being said, some gaming enthusiasts have a love-hate relationship with crypto, especially when NFTs are involved.
French gaming giant Ubisoft Entertainment was forced last year to backpedal on plans to integrate NFTs into games after player backlash.
An October 2022 survey from blockchain entertainment provider Coda Lab found traditional gamers aren’t fans of cryptocurrencies or NFTs in general, even if they don’t mind NFTs being used in games.
“If there is an increased demand from players for the integration of blocks they will likely revisit their policy,” Lee argued.
Speaking to Cointelegraph, Grant Haseley, current executive director at mobile and Web3 game development company Wagyu Games believes that one success story is all it takes to attract mainstream adoption, stating:
“AAA studios will change their minds if they start generating a true market share for Web3 games. It will only take one Web3 game to explode for others to fly.”
According to Haseley, hesitancy about adoption is due to fear that it will destroy the current business model “consumers pay strictly for entertainment.”
“They have good things now, the mobile game market for example has breached $100 billion and continues to rise,” said Haseley, adding:
“If you can make a game on the fly and still maintain profitability without changing the model, why would you even consider something radical that could have a lasting effect on the consumer base?”
Justin Hulog, Chief Studio Officer at Immutable Games Studio, shared a similar perspective, explaining that since NFTs and crypto basically transfer ownership of digital assets from companies to players, they are not attractive for mainstream adoption.
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“GTA V became the most profitable entertainment product of all time, and it’s no secret that quite a significant part of this profit is the result of microtransactions that contain in-game currency,” he said.
“Microsoft also introduced microtransactions in Minecraft some time ago; it is understandable that both companies want to control the economy in the game for financial reasons,” he added.
According to a 2020 report from market research company Junpier Research, loot boxes and related microtransaction features will make gaming companies worth $20 billion by 2025.
“If anything, this could be interpreted as two companies recognizing that NFTs and crypto are real-world assets with a value that could threaten their business model,” Hulog said.
While he thinks it’s “definitely possible” that mainstream studios will embrace blockchain technology, he thinks it will “probably start with increasing support for cryptocurrencies as a payment method for games and services.”