NFTs were briefly touted as the future of gaming. In virtual worlds, players would own their items, be able to trade characters through various markets, and benefit financially from their time spent in virtual environments. Studios have unlocked massive amounts of capital, blockchain networks have battled it out for gaming projects and nearly every major industry event has had a game of digital ownership in it.
That excitement has largely died out. AI, UGC, cloud and new distribution are the current areas of interest for gaming companies. While there are still NFT games, they no longer attract the same level of interest. Unfortunately, the industry progressed ahead of most blockchain games ever getting 'fun.'
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That said, the sol price still continues to affect the financing and operations in blockchain games, particularly as Solana has emerged as a prominent platform for affordable digital tokens. However, token prices cannot replace the need for good gameplay.
NFT Games Put Economics Before Entertainment
The largest challenge of early NFT video games was not the tech itself. The sequence in which the products were constructed. Numerous studios have built a token economy or NFT sales/reward systems even before developing a game worth playing.
Often, players were lured in with the prospect of earning tokens or selling digital items. But this brought traders and speculators, not long-term gaming communities. As the price of the tokens rose, activity skyrocketed. Many users abandoned the product when prices dropped, as there was no longer any monetary gain.
Traditional games work because they are enjoyable without monetary rewards. Players are brought back to compete, progress, experience the story, or socialize. Many NFT games didn't build them. The economy was not a supporting feature - they treated it as the product.
Digital Ownership Was Harder Than It Sounded
NFT games showed the opportunity to actually own the in-game items. A sword, character, or virtual property could be separate from the game's creator.
In reality, the ownership was restricted. An NFT may still be kept in the wallet of a player, but its utility would still rely on the game's servers, developers and community. The experience around the token could vanish even if the studio continued to support the project.
Moreover, the notion of transferring assets from one game to another was also hard to offer. There are various types of game engines, visual styles, balance systems, and intellectual property used in different games. It is not possible to take a weapon from one title and drop it into another like that without a lot of development.
Blockchain could confirm ownership, but it is not guaranteed to provide utility going forward.
Mainstream Players Rejected the Sales Pitch
NFTs were deemed by many players as yet another method for publishers to monetize their content. Concerns about loot boxes, microtransactions and unfinished releases were in the air already. Some players thought that games were becoming financial platforms because of the introduction of tradable tokens.
In response, studios tended to describe the technology rather than assuage those concerns. Wallets, gas fees, minting, and tokenomics were some of the terms that were confusing to the masses. Before they could enjoy the game, players were required to understand how the blockchain works.
The best in consumer technologies tend to go under the radar. Players don't have to know anything about cloud infrastructure to stream a game or payment networks to buy downloadable content. Often, blockchain was made the star of the show in NFT games, when it should have been a supporting role.
AI Took Over the Industry Conversation
With waning interest in NFTs, artificial intelligence was the top technology news in the gaming world. AI provided studios with practical animation, testing, dialogue, level design, and production efficiency. There were more opportunities to relate its benefits to the game development process.
Moreover, the same was not true of NFTs, which failed to show the same kind of instant value. Digital ownership might have helped in some areas, but it often didn't make the gameplay itself more responsive, creative, or fun.
That doesn't imply that AI will deliver all the guarantees being made about it. But it illustrates why the gaming industry shifted its focus elsewhere. Studios are more inclined to invest in technology that helps them produce better, more exciting games rather than in technology primarily focused on developing new markets for virtual goods.
NFT Gaming Still Has a Future
NFT gaming isn't done yet. It might be used to help with collectibles, content created by players, ticketing, membership and digital identities. It can also enable independent creators to monetize the trading of their assets.
That said, the new generation of projects needs to be less speculative and more upfront. Players should be able to join without purchasing costly NFTs, keeping complex wallets or fretting about token values. The experience should be enhanced with ownership, not determined.
Ultimately, the gaming industry advanced because NFT projects required players to be concerned with monetary systems prior to providing them with excellent games. A revival will only occur if the blockchain developers prioritize that and make entertainment the primary reason to play.
