Is the video game industry ready to embrace blockchain and crypto?
The video game industry and the fields of blockchain and crypto seem to fit together perfectly.
The major video game developers are not ready to adopt blockchain technology.
Independent games such as Blankos Block Party and The Sandbox are already using cryptos and NFTs.
The Trust Project is an international consortium of media organisations based on transparency standards.
Will video games be one of the main ways of introducing crypto to the masses? Are there already innovative blockchain-based games being developed that integrate crypto-finance and trading functionalities? Or are we doomed to more versions of CryptoKitties and will never go beyond such blockchain-based gaming applications?
The video game industry and the fields of blockchain and crypto seem to fit together perfectly. Both communities recognise and appreciate the value of digital objects, lead cutting-edge technological developments, like to have total control over their actions Bitcoin Bank and are passionate about intense emotions. Non-fungible tokens (NFTs), yield farming, digital scarcity and participatory financing are just a few examples of common ground that could bring players, investors and traders together.
At first glance, the blockchain seems to be useful in the gaming industry. It can potentially be deployed for many improvements, from securing data to saving progress and recording betting data in an immutable register. It can also be used to create truly decentralised games, where no single entity can control them independently.
The global gaming market is expected to reach a turnover of $159.3 billion in 2020, with 9.3% year-on-year growth. Can blockbusters and cryptomoney be part of this industry? Of course they can! That said, are the big video game companies that generate massive revenues year after year ready to adopt blockchain technology? Not yet. And there are at least two reasons why.
Factors hindering blockchain adoption
William Quigley, co-founder of Magnetic Capital and WAX, says that the blockchain is not yet developed enough to become an interesting tool for large developers. Quigley said:
The blockchain is really not ready for large-scale video games. It’s too slow today and it also lacks a lot of tools that people who build, say, a big video game, would need to access. So the technology is immature.
Even if the gaming industry is ready to adopt the blockchain at the technical level and use it to advance the functions and operability of games, there is another, probably more relevant issue that concerns financial factors.
The second reason is money. The great development of the video game industry over the last few decades proves that its business model works. If there is one place where developers or artists succeed in selling virtual and digital items to their customers, it is gaming.
Often, video game players are looking for rare items within the game, being willing to pay real money to get them. There is concern that blockchain technology may help players to trade and exchange items with each other without the need for a central entity.
If developers no longer benefit from the introduction of digital products into their games, what would be the reason to develop them in the first place? This freedom and decentralisation may seem quite frightening for well-established game brands.