Analyzing Blockchain Gaming’s Mainstream Adoption, A $100B Truth
Blockchain gaming has been a massive success in the world of Web3, with $4.6 billion in 2022. During the better days of the crypto market, most Web3 companies had some type of blockchain game in development.
However, there is still hesitancy in mainstream gaming to adopt blockchain technology, possibly due to a player backlash faced by Ubisoft. Let us explore what data and experts say on blockchain gaming.
What Do Gaming Experts Say?
Several gaming experts in the Web3 domain have expressed fears that it might be long before mainstream gaming companies and traditional gamers start realizing the benefits of blockchain-based gaming.
Top gaming companies are hesitant for several reasons, such as the growth in traditional gaming markets, crypto scams, rug pulls, and other cybercrime infesting blockchain gaming.
Hesitancy for Blockchain Gaming
The current business model of gaming companies is built around traditional payment methods such as credit cards, debit cards, gaming coupons, and similar modes of payment.
Mojang Studios fears rug-pulls surrounding third-party NFT integrations. Rug pulls are events when an owner of a project steals and gets away with the funds of participants, players, and depositors.
Grant Haseley, a director at Wagyu Games, said to a crypto news agency that there is a hesitancy to adopt blockchain technology in the gaming mainstream.
They fear blockchain gaming might undermine their current business model, where customers pay for the entertainment they receive from playing the games.
Moreover, since the market is worth more than $100 billion and growing, nobody wants to disturb the cash flow at the moment.
French gaming company Ubisoft, the 10th largest gaming company in the world, faced backlash due to its program to integrate NFTs into the game.
Justin Hulog, CSO of Immutable Games Studio, stated that blockchain gaming transfers the power to the hands of the players, which is unappealing to companies that are used to working around a centralized control system.
Future Outlook
A recent survey by Coda Labs found that traditional gamers were not enthusiastic about blockchain technology. However, they showed no objection to the NFTs which were present in the games.
The best course of action would be to integrate blockchain technology at its due pace.
At the same time, new changes should not disturb traditional gamers who are not keen on adopting blockchain.
Further, there seems to be a lack of education which alienates traditional players from the benefits of blockchain gaming.
Some of these benefits are:
- Players can own in-game assets (via utility NFTs).
- Reward mechanisms for better players can encourage others to play more.
- Passive income from staking crypto assets.
- In-game asset trading between players.
- Ability to control the future of the game with governance mechanisms.
However, it is still a long way to go, as crypto markets have just started showing signs of recovery after a bloody crypto winter. However, even a single success story could change the scene.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.