Is it a good business for NFT games that are more investment than gaming?

From Ubisoft’s launch of the NFT platform Quartz, to Blizzard’s questionnaires asking players for their views on the “Play-to-Earn” model, to SE President’s reiteration of his hope that “Final Fantasy” publishers will launch blockchain games, recently, game manufacturers have All seem to be interested in NFTs.

Unlike Metaverse, Web3 and other Internet buzzwords, NFT is not a grand concept with infinite possibilities. It may have a more complex operating mechanism, but it is not mysterious. Since the concept was officially proposed in 2017, NFT, which is defined as a non-fungible token, has continued to develop, and its irreplaceability and scarcity have made it favored by many collectors and investors. By 2021, NFT will usher in a period of rapid expansion in a market environment where IP creation, authorization, and demand for investment, collection, and status symbols, as well as channels for blockchain technology are becoming mature. The year is also known as the first year of NFTs. In the second year, more well-known manufacturers have joined the NFT track, making this concept further out.

Is it a good business for NFT games that are more investment than gaming?

Overseas NFT fever

In foreign countries that have set off an investment boom in NFT, cryptocurrency, and Web3 entrepreneurial tracks based on blockchain technology, NFT is not only a collection, but also has strong financial attributes.

The value of NFTs is considerable, in December 2020, the total transaction volume of NFTs was about 12 million US dollars, and in March 2021, this number soared to more than 500 million US dollars. Among them, digital artist Beeple’s NFT work Everydays: The First 5000 Days sold for a high price of more than 69 million US dollars, setting a new record for NFT art. These transactions have undoubtedly made NFTs a potential stock in the eyes of investors.

Is it a good business for NFT games that are more investment than gaming?

Schematic diagram of The First 5000 Days (part)

In addition to artwork, games are also one of NFT’s projects. Adding NFTs to games, a way for game developers to profit from the creation of a game economy, has grown in popularity in recent years.

In 2017, the “chain cat” game CryptoKitties quickly became popular after its launch. In 2020, the same team cooperated with the NBA to launch the same popular NBA Top Shot. From cats to stars, NFT games have various themes and gameplay. However, they all share common characteristics such as collection, competition, and trading. Players are encouraged to participate through playability, thereby creating the value of NFT props in the process of participation. In addition, after the broadcast of the documentary “Earn While Playing – NFT Games in the Philippines”, Axie Infinity earned as much as US$334 million in one month, and the highest single-day revenue exceeded US$11 million, making it the most popular in 2021. Chain tour.Greatly increased the popularity of NFT games.

Is it a good business for NFT games that are more investment than gaming?

Screenshot of the documentary video of “Play and Earn – NFT Games in the Philippines”

Perhaps seeing the success of this “play and earn” model, many traditional game manufacturers have also begun to enter the NFT field. In addition to cooperating with blockchain technology platforms to find investment opportunities, manufacturers are also trying to develop NFT games, or in their widely popular Welcome to NFTs in the game.

Different from Blizzard’s denial of NFT-related projects after releasing the questionnaire, Ubisoft’s attitude towards this direction is very firm, although its “first playable and energy-efficient NFT platform in a 3A-level game” did not perform well. Ghost Recon: Breakpoint’s move to add digital property rights has also been frustrated by player resistance, but Ubisoft has not given up, saying it will continue to try the model in more games. In the global version of the MMO end game “Legend 4” under Yumeide, blockchain technology and NFT have also been added for players to experience.

Manufacturers’ concerns under risk

However, not all manufacturers embrace NFTs. Steam explicitly rejects blockchain games, saying it is to protect the core value of the game. The EA CEO who originally claimed that NFT is the future of the industry has also changed his tone, saying that EA will not enter the NFT field for the time being. The boss of Epic Games, which previously welcomed blockchain games, has also changed his mind in an interview recently, expressing his belief that digital goods will become popular and lucrative, but now the NFT market is full of criminals and scams.

Concerns about the risks of NFTs are an important reason for resisting NFTs. Climate Replay, an overseas environmental video game organization, issued a letter of commitment to ensure that manufacturers that have used NFTs minimize harm to society. As can be seen from the gist of the commitment letter, concerns about NFTs mainly include speculation, the risk of unregulated and unstable cryptocurrencies, and the negative aspects of the Play-to-Earn model: informal employment, changing the main purpose of the game from Enjoy the turn to earn money, as well as operational transparency.

From recent news, we can also see some instability in NFT games.

One is the impact of the game suspension. In March this year, F1 Delta Time, one of the first officially licensed NFT games, announced that it would be discontinued. When it was launched in 2019, it detonated the NFT game circle, and the racing cars in the game were once auctioned for sky-high prices. However, because the game could not renew the F1 license, the economic system in the game began to collapse before the server was stopped. Although the official promise to convert to other assets in the NFT ecosystem as compensation, did not save players from the losses suffered by the drop in the price of the in-game currency.

Is it a good business for NFT games that are more investment than gaming?

Second, security is difficult to guarantee. On March 29, Axie Infinity revealed that its virtual currency platform Ronin had been attacked, losing more than $600 million worth of cryptocurrency. This is the most serious security incident in the chain game field, and it has been 6 days since the problem was discovered, which also points out the security risk of the virtual currency system.

Different from the active investment in parallel with risks in foreign countries, in the environment where the relevant regulatory mechanism has not been perfected, NFT has weakened the transaction attributes in China and focused on the copyright protection function, which is mainly reflected in digital collections. The well-known ones include digital Dunhuang, music records, etc., and celebrities familiar to the domestic public, such as Jay Chou and Lin Junjie, have also announced their own NFT collections on social platforms.

Is it a good business for NFT games that are more investment than gaming?

In the past year, big Internet companies such as Ant Group, Baidu, and BilibIli have joined together to enter NFT, but the big companies are all gaining momentum in this field. On the other hand, it is necessary to master the relevant technologies and seize the market in advance to prepare for the emergency. With the development of the blockchain and the continuous expansion of the NFT market, the relevant systems will be gradually improved, and the domestic secondary market may be opened. At that time, major manufacturers will also make great efforts to make big moves in games and more fields.

Attitude towards unknown players

Although the attitudes of domestic and foreign manufacturers are different, players of traditional games are basically resistant to adding NFTs to the game. In addition to its risks, the most important reason is that after the combination of NFT and games, investment will replace the fun of games.

Most of the NFT games are relatively simple. The current NFT games are mostly competitive and simulated management. Its core is Play-to-Earn. Taking Axie Infinity as an example, it has a good community ecology and has also become an important way for people in some regions to obtain a source of life. This game is popular with many players. Essentially, it has many players. for speculators. Traditional games are the superposition and penetration of multiple gameplays. The gameplay mechanics, stories, characters, and the truths and emotions that the game expresses are the core of attracting players. Players care more about whether the game is fun or not.

On the other hand, the resistance to NTF games is not because of seeing the results, but on the contrary, it is largely due to the lack of understanding of NFTs. Unlike NFT game players, traditional players’ impression of NFT is mostly virtual currency hype, or similar to the bad game experience brought by studio gold. Coupled with the chaos in this market, in players’ expectations, traditional games and NFT games have always been two unrelated fields.

This kind of thinking is also evident in the attitude of players towards manufacturers. Traditional game makers, especially well-known big ones wanting to do NFT, will undoubtedly break the established cognition of players, especially when they know that they want to add something unfamiliar and bad impression to a game they are familiar with, the first reaction is rejection . Players dare not take the risk of destroying the connotation of the game, and manufacturers are afraid to anger players, so it is quite difficult to walk on this road.

Is it a good business for NFT games that are more investment than gaming?

Epilogue

Compared with the concept of the Metaverse, NFT has a clear development path and technical support, so it is likely to become an important trend in the future market. However, although NFT has investment value, it has not been shown in the game market, especially in traditional games. For most players, the connotation and value of assets such as currency, fashion, and rare items in different games How these values ​​can exist in the form of NFTs cannot be separated from the explanation of a specific game, at least for now, it is difficult to imagine.

In the current environment, for players to change their minds about NFTs, a game that breaks the circle may be needed, which is attractive enough for ordinary players to get access to NFTs, so as to understand how NFTs are combined with the gameplay, which will affect the game experience. What kind of influence, rational judgment rather than based on established impressions will always be rejected.

When it comes to making a game about NFT and making a game with NFT, it seems that the development paths of NFT game manufacturers and traditional game manufacturers are different, and how can NFT games avoid rapid explosion and depression, traditional games How to maintain a balance between the core of the game and the Play-to-Earn mode may take a long time to explore.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/is-it-a-good-business-for-nft-games-that-are-more-investment-than-gaming/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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