NFTs in Video Games is Inevitable: Here's Why You Should Embrace it
Despite the reluctance, there is an apparent shift from conventional gaming to NFTs and Blockchain-based Web3 games. The world of gaming has changed a lot in the last decade or so. The introduction of NFTs and in-game finance has revolutionized the gaming experience, attracting the masses that weren’t that much in the gaming world. People were hesitant over spending money on in-game items even before the introduction of NFTs. Just 23% of gamers buy in-game products according to a recent survey. However, developers might use this business model effectively given the amount of money that is accessible to companies that offer in-demand game assets.
But why is NFT gaming the future of video games? There's an evolutionary reason behind it, let's find out.
Pay to Access In-Game Accessories
It all began with the introduction of buyable horse armor in The Elder Scrolls 4: Oblivion for $2 in 2006. It was the beginning of downloadable content (DLC) after full access. Despite the criticism and reluctance, this was the start of a major shift in the games industry and its business structures, opening the door for in-game assets and downloadable content. From pay-to-play, the gaming industry moved to free-to-play and then towards DLC.
Since then, some of the most popular video games have made use of in-game purchases a lot. Free games, like League of Legends and Fortnite, made a hell lot of fortune despite being free to play. The micro-transactions took the market size to around US$67.28 billion. Diablo 3 by Blizzard, had the players’ trade, bid on, and purchase items features, but failed owing to criticism and fan backlash. In 2022, they faced criticism again for the mobile version of Diablo – Diablo Immortal, which had an in-game hero up-gradation feature, costing up to 300000 US$.
Gamers Not Buying the Idea of In-Game Purchases, So Why NFTs?
The common criticism was that buying downloadable upgrades and bonuses rendered the game's purpose moot. However, what if the downloadable content served as the foundation for a market that enhanced rather than detracted from the intricate worlds that players inhabit in such games? These assets frequently disappear along with the games they were bought or won in. The problem with these conventional games was that gamers may invest hundreds of hours to collect these in-game assets or spend real money, only to have those assets lost or digitally forgotten when it's time for a new game or a sequel or if the gaming company closes.
The Introduction of Blockchain and NFTs: The New Era of Gaming
We are currently witnessing technology advance to a level in which players have total control over their in-game assets. Developers and studios can support actual gamer ownership of in-game assets by utilizing cutting-edge technology like blockchain. Game ownership gives a lot back to gamers for their time and resources, and, of course, loyalty. A gamer's portfolio of in-game assets means a lot to the gamer as well as the community. So, owning it adds a lot instead of beginning again from scratch when playing a new game or a sequel of an existing IP.
On the blockchain, the skin is exchangeable as an NFT, or non-fungible token. NFTs are a particular class of blockchain token that cannot be exchanged for another, making them perfect for in-game assets since the legitimate owner can unquestionably demonstrate ownership. This implies that any breach, hack, or attempt to remove the weapon skin by the game platform will be ineffective.
An asset's potential and usability dramatically rise when bought as an NFT. It no longer depends on the game it came from. For the first time, players could really take assets off the gaming platform with this guaranteed proof of ownership. This opens up a potential cash stream for developers and players alike because it means that in addition to being utilized in another game, the item may also be placed for trade or sale on NFT marketplaces. Despite the rise of the technology, only 2% of studios are actively implementing blockchain technology in their projects, and the majority claimed they have no interest in doing so.
NFTs and the Future of Gaming
Evolution in the gaming sector is the need of the hour, if we are to maintain the micro-transaction market for the gaming industry. Giving players actual ownership over their in-game possessions not only fosters a sense of increased agency on their part, but it may also open up new revenue streams for game studios and creators.
Educating the extremely vocal gaming community about how blockchain and Web3 might improve their gaming experience presents a problem. While the GDC research may indicate that 61% of developers are reluctant on implementing blockchain technology in games, organizations that pay attention to their users' requirements have a more upbeat outlook. But, for those who do, the advantages will ultimately work in their favor and serve to enhance players' gaming experiences. However, there will always be a segment of the target market that will refuse to spend any money on in-game things.
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