The video game industry and the fields of blockchain and crypto seem to fit together perfectly.
Big video game developers aren’t ready to embrace blockchain technology.
Indie games like Blankos Block Party and The Sandbox already use cryptocurrencies and NFTs
Will video games be one of the main ways to introduce crypto to the masses? Are there already any innovative blockchain-based games being developed that integrate crypto-finance and trading features ? Or are we doomed to other versions of CryptoKitties and will never go beyond these type of blockchain-based gaming apps ?
The video game industry and the fields of blockchain and crypto seem to fit together perfectly. Both communities recognize and appreciate the value of digital objects, lead cutting-edge technological developments, enjoy being in full control of their actions and are fond of intense emotions. The non-expendable tokens (NFT), the performance of farming, numerical rarity and crowdfunding are just a few examples of areas of agreement that could bring players, investors and traders.
At first glance, blockchain appears to be useful in the gaming industry. It can potentially be deployed for many improvements, from securing data to saving progress and saving betting data in an immutable ledger. . It can also be used to create truly decentralized games, where no single entity can control them independently.
The global gaming market is expected to reach revenue of $ 159.3 billion in 2020 , growing 9.3% year-over-year. Can blockchain and cryptocurrencies be part of this industry? Of course! That said, are the big video game companies that generate massive revenue year after year ready to embrace blockchain technology? Not yet. And there are at least two reasons for this.
Factors that hinder blockchain adoption
William Quigley, co-founder of Magnetic Capital and WAX, says 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 building, say a great video game, would need to access. The technology is therefore immature.
Even though the gaming industry is poised to adopt blockchain technically and use it to advance the functions and operability of games, there is another, and possibly more relevant, issue that relates to financial factors.
The second reason is money. The great development of the video game industry in recent decades proves that its economic model is working. If there is one place where developers or artists are successful in selling virtual and digital items to their customers, it is gambling.
Often times, video game players are looking for rare items within that game, being willing to pay real money to get them. There are concerns that blockchain technology will help players trade and exchange items with each other, without the need for a central entity.
If developers are no longer profiting from the introduction of digital products in their games, what would be the reason for developing them in the first place? This freedom and decentralization can seem pretty scary for established gaming brands.