The video gaming industry has driven the recent rise in the popularity of NFTs. Game developers have been quick to adopt NFTs to reward players and create new in-game economies.
But will this be a long-term trend? What are the benefits of NFTs for gamers and game developers? Our experts in the gaming industry will share what you need to know about this hotly debated technology and its role in gaming today and in the future.
The Role of NFTs in the World of Gaming Today
We see NFTs offer several advantages for both players and developers. NFTs can be used to create unique in-game items that can be bought, sold, or traded, and this opens up a whole new world for earning while playing video games.
For players, NFTs provide a way to own digital assets and in-game items that can be traded or sold for real money.
For developers, this means NFTs can be used to create new forms of in-game microtransactions. NFTs also provide a way to reward players with unique items that can’t be duplicated or counterfeited.
The First Gaming Companies That Embraced NFTs and the Blockchain Tech
When video games first started incorporating virtual items into their economies, cat-related cryptocurrencies took off. CryptoKitties allowed players to buy and sell digital cats on an island economy where all transactions are kept in smart contracts, a blockchain version of what we know now as Tamagotchi eggs or Play-Doh sticks.
In December, something much bigger happened when French game company Ubisoft became the first AAA studio (top tier) within this space by releasing its marketplace called Quartz. It allows players to purchase various in-game accessories for Ghost Recon Breakpoint.
The now-famous Axie Infinity (created by Sky Mavis) has also used a blockchain-based game to allow users to buy, sell, and even breed digital pets that you can use to fight in battles. NFTs earned from Axie are called “tokens” and can be used to purchase in-game items like power-ups, new equipment, and pets.
NFT Gaming and Its Whopping Revenue
The report by the Blockchain Game Alliance revealed that nonfungible token (NFT) games generated $2.32 billion  in revenue during Q3 in 2021.
It encompassed about 22% of all NFT trading volume industry-wide and increased over last year’s numbers when blockchain gaming had its first craze with Axie Infinity. The numbers reached $2.5 billion in revenue, which surpassed recorded sales from CryptoPunks and NBA Top Shot.
It was only recently that NFTs became a popular concept in the gaming industry as companies sought new ways to make gaming more enjoyable.
NFTs are digital assets stored on a blockchain, a distributed ledger that records transactions. It can represent anything in-game items, and they’re unique because no one can duplicate them. However, these items have no real-world value and can only be traded or sold for other NFTs or currency.
Earning While Playing
The ‘play to earn’ concept has been a popular way to monetize games. You can earn in-game items by playing the game and then sell them for real money. Because of blockchain technology, NFTs provide a way to do this with digital assets.
For example, in the game CryptoKitties, players can earn NFTs by breeding digital cats. You can then sell these NFTs for Ethereum, Bitcoin, or other cryptocurrencies.
How do Gaming Companies and Players See it Today?
We see mixed reactions among developers and players regarding this topic. Our experts have divided opinions on this, considering that NFTs are still a new concept in gaming.
On the one hand, some argue that NFTs could lead to more speculative bubbles and prices detached from the underlying game. But others see NFTs create new revenue streams for gaming companies and provide more value for gamers.
What to Expect from the Integration of NFT in the Gaming Industry
We believe the potential of NFTs in the gaming industry is still being explored. We can expect to see more games and platforms integrating NFTs in the future. NFTs could also be used to create new business models for gaming companies and provide more value for gamers.
As the latest development in the industry, we make it a point to check out unique platforms like NFT Drops to check the latest updates and development for NFTs for gaming enthusiasts.
What game companies are offering NFTs?
Ubisoft and Sky Mavis are two game companies offering NFTs and are leading blockchain-based gaming platforms with skyrocketing revenues. However, companies like GameStop, Square Enix, and Nintendo are also eyeing the potential blockchain to improve the gamer experience.
NFTs are still a new concept in the gaming world. But we are pretty optimistic about the potential blockchain brings to the gaming industry. And for NFTs in specific, we think they could create new revenue streams for gaming companies and provide more value for gamers.