Web3 and gaming: what impact do NFTs have on the video game industry?
Share
Video games have significantly evolved since their beginnings as simple simulations in the 1950s.The first consoles such as the Magnavox Odyssey and the Atari 2600 transformed home entertainment in the 1970s and 1980s. The Nintendo Entertainment System, the Sega Mega Drive and the Sony PlayStation subsequently improved the graphics and storylines.
Since the beginning of the new millennium, consoles such as PlayStation 2, Xbox and the Wii have introduced motion controls and online gaming. PlayStation 5 and Xbox X Series currently provide ultra-realistic experiences and virtual reality.
A new revolution is underway in mobile and cloud gaming and changing how and where we play. The integration of technologies such as blockchain and Web3 is leading to a future for the gaming industry in which players will enjoy real ownership over their digital assets and have the ability to explore new economic opportunities. Moreover, non-fungible tokens (NFTs), unique digital assets in the blockchain, are transforming the design, gameplay and monetisation of video games and creating new opportunities and challenges for developers and players.
Main benefits of Web3 in gaming
Web3 has revolutionised gaming by means of NFTs, permitting real and verifiable ownership of digital assets in the blockchain. Unlike Web2, the administrators of which controlled the in-game objects, players can now own, sell and trade assets in and outside the game.
The play-to-earn model allows them to earn cryptocurrencies and other digital assets by playing, thus rewarding their time and efforts and providing a source of income. The Web3 gaming economy is open and dynamic, with decentralised markets in which players control their assets and have the ability to effectively monetise their skills and achievements.
Digital property
One of the most revolutionary aspects of NFTs in video games is the opportunity for players to be granted digital ownership. Traditionally, in-game items and assets were simply data on the developers’ servers. Players could buy and earn these assets, but they didn’t truly “own” them. With NFTs, each item can be unique and individually owned, allowing players to exert full control over their digital assets.
Uniqueness and exclusiveness
The opportunity for developers to create NFTs in limited quantities, ensuring that some objects are rarer and more valuable than others, makes them unique and exclusive digital assets. This scarcity creates a secondary market in which players can buy, sell and trade NFTs as if they were physical collectible cards.
Monetisation and player economics
The inclusion of NFTs in video games also is transforming economies in the game and monetisation opportunities. Developers can benefit from the initial sales of NFTs and any secondary transactions, thanks to the smart contracts that can schedule commissions for each resale of an item.
For players, this means that the time and money invested in a game can accrue a tangible value outside the game. Instead of spending money on items that lose their value when they stop playing, players can invest in assets that they can sell or trade. This is how the play-to-earn model is gaining popularity in several countries.
Challenges of Web3 gaming
Despite the opportunities, the integration of NFTs into video games is not without its challenges. The environmental sustainability is a concern, as blockchain transactions, particularly those in Ethereum, can be energy-intensive.
Accessibility is also a key issue. Currently, buying and selling NFTs can be complicated for players who are unfamiliar with cryptocurrencies and digital wallets. In this regard, one of the best options for environmental sustainability and getting started in a digital wallet is MetaMask
Examples of Web3 gaming
In the TU Gallery there are collections that are characterised by the fact they are related to the world of video games.
MetaSoccer in the TU Gallery
For football fans there’s the MetaSoccer Land collection, a game and platform that provides them with the experience of becoming the owner of a club and obtaining rewards through a good management regime and strategy.
In this case, obtaining the NFT will deliver exclusive ownership privileges and benefits on the MetaSoccer platform. Each of these NFTs represents a FIFA member country. represents a FIFA member country.
Axie Infinity
Axie Infinity is one of the first games to incorporate Web3 technologies. This game combines elements of digital pet games with blockchain technology. Players can breed, buy and sell Axies, which are unique digital creatures represented by NFTs. Axie Infinity also enables players to earn cryptocurrencies through in-game battles and quests. This play-to-earn model has proven particularly popular in regions in which gambling revenues can exceed traditional salaries, providing a new source of income for many people.
Elixir Games
Elixir Games is a prime example of how Web3 can transform the gaming industry. This platform integrates blockchain technology to provide a more transparent and fairer gaming experience. Players can earn cryptocurrencies and NFTs while they play, allowing them to monetise their time and efforts. Elixir Games also provides a marketplace in which players can buy and sell their digital assets, thus promoting a robust and autonomous gaming economy.
In short, the future of Web3 and NFTs in the video game industry promises to revolutionise digital property and in-game economics. Players will be able to own, trade and monetise unique and verifiable assets, which will enhance the experience and foster stronger communities. Moreover, developers will be able to innovate with their business models, offering new forms of interaction and rewards.
Trabajo en Telefónica como Metaverse Creative Technologist & 3D Design Manager. Desde 2002 desarrollo experiencias en diferentes plataformas de Metaverso (Adobe Atmosphere, Second Life, Horizon Worlds, Spatial, Microsoft Mesh, Fortnite…) Desde mi Bachelor in Business and Marketing en la Universidad de Hertfordshire he ido ampliando mi conocimiento en varias áreas como publicidad, diseño gráfico y web, diseño 3D, videojuegos… Siempre orientado a la creación de experiencias interactivas.
He creado más de 50 sets virtuales en tiempo real para programas de televisión, he trabajado para Disney creando experiencias interactivas para los parques temáticos de Orlando y soy cofundador de un estudio de videojuegos.
