Developers of popular video games are conflicting with their publishers over plans to integrate non-fungible tokens (NFTs) and blockchain technology.
Blockchain technology featured prominently at this year’s Game Developers Conference, where companies promoted the prospect of digital ownership of game assets with NFTs. For example, players who purchased an item in one game could potentially use it in another game, or resell it later for real value.
Supporters of the digital ownership initiative envision players leveraging their inventories of collected merchandise such that they can earn tangible wages from them.
Major studios open to integrating such features include Square Enix, known for Final Fantasy role-playing games, Konami, which developed the Metal Gear series, and Sega, home of video game icon Sonic the Hedgehog.
However, despite the enthusiasm of these major publishers, many of their developers feel that NFTs constitute exploitation of gamers’ trust, or could create tiered communities that would benefit the wealthiest players.
They also expressed concern about the risks of crypto scams and the carbon footprint of cryptocurrencies. After backlash from staff editors, Ubisoft and Team17 were forced to scale back or scrap NFT projects earlier this year.
Digital ownership pledge
In light of the conflicting perspective and interests, an independent group from Minecraft maker Mojang Studios, which includes game developers, artists and staff, have drafted a pledge on digital ownership.
Signing the pledge would require publishers to be fully aware of the implications of integrating NFTs and cryptocurrencies into their video games before implementing them.
They must also adhere to ethical considerations, such as eschewing practices that lead to artificial scarcity and speculation, or that disproportionately benefit early adopters or wealthier players. Energy-intensive and volatile cryptocurrencies must also be avoided.
Axie infinity hack
The prospect of introducing NFTs or a play-to-earn style economy is also baffling for developers due to a recent hack of the Axie Infinity blockchain-based game for over $620 million. By holding players’ money in the form of these NFTs, gaming companies also inadvertently become responsible for their safekeeping.
Maintaining the value of these assets would also become a persistent concern. Since the Axie attack was made public in late March, the value of AXS tokens has slipped almost 40%. Meanwhile, some $5.8 million of the stolen funds have reportedly been recovered.
