It’s hard to be Walk through your door without stumbling across a new blockchain-based platform and Gaming is no exception. Game publisher Ubisoft has bucked the trend with Quartz, a platform that aims to facilitate NFT in the company’s games, while startups like Forte and Legend boomed with hundreds of millions of dollars in funding.
Such numbers show enthusiasm, but the reaction from gamers is mixed, to say that at least. To find out why, I spoke with Tim Morten, CEO and co-founder of Frost Giant Studios. Morten was previously executive producer for Blizzard’s StarCraft IIwhere he oversaw the game’s transition to free-to-play and release Void’s LegacyThe final expansion of the game.
Morten doesn’t completely rule out the future of blockchain in games — but he thinks there could be a few problems.
Play for money is not a free ride
The buzz around blockchain games has been fueled by the rise of “play for money” titles like Axie Infinity. Popular Likes Pokémon Franchising, Axie allows players to collect, trade, breed and battle cute digital creatures. Players earn cryptocurrency by trading creatures or an item—the “Smooth Love Potion”—required to breed new Axies. However, for a while, players can earn more than some countries’ minimum wage that changed as the value of the game’s cryptocurrency dropped.
Morten is uncomfortable about playing for money even though it might allow some players to earn a decent salary. “I’m not interested in building games to help someone in a third world country make a living,” he said in a video interview. “That sounds backward to me, to have an economy where people who are struggling for a living are playing a game just to make a living.”
Play-for-earn also raises tough questions about the economics of the game. Balancing a virtual economy is hard enough without tying it to a volatile real-world value cryptocurrency. “Maybe someone comes up with a way to make a great game that also brings money to the players, but I think that begs the question where the money comes from,” Morten said.
So far, the answer to that question has often been the players. Most blockchain-based games require players to purchase by purchasing a creature or item, and developers typically take a small cut from each transaction.
Morten considers this pattern “dangerously close to a pyramid scheme.” Blockchain games that use this model are fine as their popularity grows but run into trouble after it peaks. Less interest means a lower token value of the game, resulting in lower player earnings, which further reduces the popularity of the game. It’s a vicious circle.
This problem is exacerbated by the fact that games naturally see a dramatic explosion in interest upon release, followed by an inevitable drop. “The population of a game is not constantly growing,” says Morten. “The game population peaks and then goes down. So I have a lot of concerns about the long-term viability of playing for money.”
NFT for eSports, Payments and Bragging Rights
Of course, playing for money is just one fork of blockchain-based gaming. Publishers like Ubisoft wanted to explore the idea from a different angle, positioning NFTs like badges, skins, and cosmetic items as a way for players to advertise their status.
In-game rewards are familiar territory for Morten. StarCraft II was a mainstay of the e-sports scene for many years after its release, and players who win tournaments often receive in-game badges as an indication of their achievements. “I consider titles to be bragging rights,” says Morten. “It’s a powerful thing. I definitely like to show off when I do something interesting in the game. ”
The NFT promises players the chance to own and trade trophies, badges, and other achievement tokens, but Morten isn’t sure players will be eager to trade those achievements. “I currently think the value of that is in the game,” said Morten. “Maybe, one day, we can invite friends over to our super virtual trophy room. But that day is not today.” Possessing a tradable NFT of a league trophy makes him particularly odd, as trophies are seen as proof of a player’s achievement.
There is another, more direct way that blockchain could prove useful for gaming: payments. Distributing cash to eSports competitors is no trivial task. Tournament organizers must source pool funding, obtain sponsorship money, keep cash safely, and then pay out winnings while complying with local regulations.
