Traditional video gaming industry is still skeptical of NFTs

The non-fungible token (NFT) gaming ecosystem has exploded in the last few years. Some of the largest Web3 gaming projects include Axie Infinity, Splinterlands, and Gala Games, and these platforms have seen notable adoption. However, while the Web3 gaming sector is exploding, the traditional video gaming industry is not sold on NFTs.

Blockchain is disrupting the video gaming industry

Most large game publishers are feeling the shift in the gaming industry following the explosion of blockchain gaming. Most of these companies have already hired blockchain development teams.

There is an apparent struggle to bring together the traditional and blockchain gaming ecosystems. The struggle could be attributed to several gamers rejecting NFTs.

However, some game publishers are already integrating NFTs despite the backlash from gamers. For instance, Ubisoft, through the QuartzDigits platform, allows players to trade collectibles for specific games like Ghost recon Breakpoint. Epic Games also released an NFT title.

Not all game publishers are sold on NFTs

While there is some notable level of adoption, not all game publishers are sold on NFTs, and some have outright banned collectibles on their platforms. Last year, Steam banned all games that integrated NFTs and cryptocurrencies. At the time, the co-founder of Valve, Steam’s parent company, Gabe Newell, said it was banning digital assets because of volatility and bad actors in the sector.

Recently, the parent company of Grand Theft Auto creator Take-Two Interactive also banned NFTs. Rockstar Games updated its user policy banning the sale of digital assets such as cryptocurrencies and NFTs.

The change in policy by Take-Two affected GTA servers that might not have been supervised by the company, such as the MyMetaverse server. Popular rapper Lil Dirk has also launched a server known as Trenches that sold vehicles, loot boxes, and in-game properties on GTA.

Trenches and MyMetaverse have already said that they have complied with the new user guidelines and shut down their servers. The two companies, alongside others that offered NFTs on GTA, will no longer be able to extend their services.

Mojang, the developer behind Minecraft, also made a similar move earlier this year. The company banned support for NFTs within the Minecraft client and server applications. While Minecraft is not a blockchain-based project, some server owners had created Minecraft NFTs and metaverse projects on top of Minecraft.

While there is an apparent resistance to NFTs by the traditional gaming ecosystem, blockchain developers continue to find ways to bypass these restrictions. However, such moves could be followed by major lawsuits. Moreover, the adoption of GameFi remains high, and in the coming years, these traditional video gaming companies could find new ways of accommodating the technology.