Blockchain Gaming Executives Predict Mainstream Adoption of Web3 Technology
The integration of blockchain technology in mainstream games has been slow, with major studios taking a step back from incorporating it into their games.
Mojang Studios, the developer behind Minecraft, announced a ban on non-fungible tokens (NFTs) and blockchain technology in July 2021.
In November, Rockstar Games updated its website to stipulate that fan-operated servers for Grand Theft Auto V can no longer utilize crypto assets, specifically NFTs.
Despite this, some blockchain gaming executives believe mainstream studios will eventually embrace Web3 technology.
The current hesitancy: lack of education and regulation
Walter Lee, the gaming growth lead at BNB Chain, believes that mainstream studios are hesitant about blockchain technology due to a lack of education and regulation around Web3.
Lee believes that player demand will ultimately tip the scale on blockchain tech in mainstream games. He argues that once more regulation is in place to guarantee player safety, mainstream studios will warm up to the technology.
Mojang Studios pointed to rug pulls surrounding specific third-party NFT integrations, along with wash trading and issues around digital ownership, as reasons for the ban.
Player backlash on Ubisoft’s plan to integrate NFTs
French gaming giant Ubisoft Entertainment was forced last year to backpedal on plans to integrate NFTs into its games after player backlash.
An October survey from blockchain entertainment provider Coda Labs found that traditional gamers weren’t fans of cryptocurrencies or NFTs in general, though they didn’t seem to mind NFTs used in gaming as much.
Lee argues that mainstream studios will likely revisit their policies if we see increased demand from players for blockchain integrations. So far all NFT experiments by major studios have been a flop.
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One success story could spark mainstream adoption
Grant Haseley, the executive director at mobile and Web3 game development company Wagyu Games, believes that mainstream studios will change their mind once they start yielding market share to Web3 games.
According to Haseley, the mainstream hesitancy around adoption is out of fear it will undercut the current business model of “the consumer strictly paying for entertainment.”
He adds that if you can make a game on the fly and maintain profitability without changing your model, why would you even consider something radical that could have lasting effects on your consumer base? Haseley believes that one success story is all that is needed to spark mainstream adoption.
Ownership of digital assets: a threat to the business model of mainstream studios
Justin Hulog, the chief studio officer at Immutable Games Studio, shares a similar perspective as Haseley. He explains that it’s unappealing for mainstream adoption because NFTs and crypto fundamentally transfer ownership of digital assets from companies to players.
According to a 2020 report from market research firm Junpier Research, loot boxes and other microtransaction-related features will net gaming companies $20 billion by 2025. Hulog believes that mainstream studios will “likely start with something like adding support for cryptocurrencies as a payment method for their games and services.”
Despite the slow adoption of blockchain technology in mainstream games, some blockchain gaming executives believe that mainstream studios will eventually embrace it.
An increase in demand from players for blockchain integrations and the and a success story to spark mainstream adoption might push mainstream studios to change their tune. However, the ownership of digital assets and the threat it poses to the business model of these companies may result in a gradual adoption, starting with adding support for cryptocurrencies as a payment method for their games and services.
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Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
