Some Gaming Companies Are Done Flirting With NFTs

Some gaming companies that were offering nonfungible tokens, or NFTs, to players as in-game rewards have decided their virtual worlds are better off without them.

One reason for backing off from NFT schemes is that prices for some NFTs and for crypto assets in general have fallen since the 2021 surge in NFT enthusiasm, Bloomberg reported Sunday (Sept. 18). Another reason cited by some gaming company executives interviewed by Bloomberg is that players don’t seem to like them.

For some, the NFT reward systems “fundamentally change the dynamics of a game and the expectations of its players.” To some participants, including game producers and players, the fun of gaming became too much like investing.

In a recent announcement explaining a new policy of not allowing NFTs on its platform going forward, Minecraft-producer Mojang cited several in-game NFT applications and said, “Each of these uses of NFTs and other blockchain technologies creates digital ownership based on scarcity and exclusion, which does not align with Minecraft values of creative inclusion and playing together.”

The announcement continued, “We are also concerned that some third-party NFTs may not be reliable and may end up costing players who buy them. Some third-party NFT implementations are also entirely dependent on blockchain technology and may require an asset manager who might disappear without notice.”

Bloomberg quoted game developer Mark Venturelli, a critic of integrating NFT transactions and gaming, as having told the news service via email that gamers tend to be tech-savvy and passionate about gaming itself.  “When you combine these two things, it’s easy to see why they fail to see the appeal of a gimmicky technology that provides nothing of value besides a ‘make money quick’ scheme.”

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Gaming company Atmos Labs Chief Executive Kevin Beauregard told PYMNTS for an article published Sept. 2 that NFTs in gaming can add to the experience and value for players, but he prefers not to use the industry-common terminology for the practice.

“I don’t love the play-to-earn narrative,” he told PYMNTS. “I focus on the word ownership. If you make something about earning then all it is about is work. It is no longer fun.”