Why gamers are turning their backs on NFTs

You would think that there couldn't be a mass audience more prepared to accept non-fungible tokens (NFTs) than the world's 3 billion gamers. Outside the small, frenzied community of cryptocurrency investors, these certificates of ownership, linked to a digital file and registered on a secure blockchain, can prove enigmatic in their complexity and elusiveness. But many of the conceptual hurdles to understanding NFTs are already second nature to players, who are often fluent in how in-game virtual currencies work and the idea that digital assets have real financial value — see the booming trading of virtual items, a consumer market forecast to reach $50 billion this year.

Therefore, it is not surprising that in recent months many of the gaming industry's biggest players have announced plans to integrate NFTs into their ecosystems, allowing players to become the sole owner of a unique device or a virtual land, for example. The first major developer was Ubisoft, which launched NFT items for military shootersGhost Recon Breakpoint. Square Enix's president spoke positively about blockchain gaming in a recent statement, as did EA, Konami and Zynga. Two legendary game designers, Will Wright and Peter Molyneux, have thrown their weight behind NFT gaming projects. Molyneux’s sold millions of dollars worth of NFTs before it even hit the market.

What exactly do developers think NFTs can offer the gaming world? One idea is that they can create a scarcity of digital items and increase their real-world value. Another reason is that they will work in games, unlike an NFT for a digital piece of art that can only be viewed in a virtual gallery. They also suggest that gamers could make money by trading NFT items, something that could happen in the dubious new world of “play-to-earn” games such as. B. is already commonAxie Infinity. The significant investment in gaming NFTs certainly suggests that developers, who could take a cut from every transaction for a digital product, see them as a route to massive new revenue.

So if the worlds of gaming and crypto seem such natural companions, why is the gaming community in turmoil? Square Enix's statement was roundly ridiculed, Ubisoft NFTs have sold poorly, and in December developer GSC Game World was forced to reverse its plan to incorporate NFTs into its upcoming releaseSTALKERS 2due to an angry reaction from fans. It's not just gamers - developer Valve has banned NFT games from its popular Steam store, while several others have criticized such plans.

Players don't want to pay a lot and own worthless digital items when the bubble bursts

A common criticism is the environmental cost of using blockchains like Ethereum and Bitcoin, and while there are greener alternatives, they have not yet been adopted by major players. Players have pointed out the irony in the case of Square Enix, whose biggest game,Final Fantasy VII, is an eco-fable about a nefarious corporation that profits from environmental destruction.

Another reason is fraud in the NFT world. This arose from the crypto bubble, where speculation drove up prices and hyped NFTs quickly lost value after the enthusiasm died down. Players don't want to pay a lot and own worthless digital items when the bubble bursts.

They also wonder whether NFTs will provide real value to players. There are already many marketplaces in the game, so why do they need to be attached to NFTs? What true value does digital scarcity have besides prestige? Isn't the infinite reproducibility of digital objects one of their main arguments, so that everyone can get a piece of the pie? Developers tout the appeal of “interoperability,” meaning NFT items purchased in one game could be used in another, but there are myriad aesthetic, technical and legal barriers to implementation.

The root of gamers’ reluctance towards NFTs is trust. Gamers are sensitive to the behavior of game companies because they spend a lot of time, money and passion on their hobby. Over the past decade, the industry's experimentation with new revenue models such as microtransactions, loot boxes and pay-to-win mechanisms has come at the expense of player enjoyment. Gamers don't want the best hairstylesThe Simsbeing locked behind a paywall or having to shell out to be competitiveFifaorNBA 2K, especially if they've already paid for the base game. When game companies say that gamers can make money playing games, many gamers' response is: I don't play games to make money, I play to have fun.

Judging by the optimistic statements that accompany them, NFTs in games are here to stay, but if developers want players to adopt them, they need to develop an implementation that makes games more interesting and entertaining, rather than just another way to fill the company's coffers.