Minecraft rejected NFT: Why is NFT highly relevant to the gaming industry?

Written by Shawn 2022 Cohort

The NFT field ushered in the most significant “black swan” incident, as the game closest to the metaverse finally rejected the NFT.

Minecraft, a game developed by Microsoft, updated its usage guidelines on July 21 to state that Minecraft client and server applications are not permitted to integrate blockchain technology and may not be used to create NFTs related to any game content, including worlds, skins, character items, or other modules.

Mojiang points out that NFT conflicts with the inclusive, shared game values presented by Minecraft. Not only does NFT create a dichotomy between rich and poor scenarios, but it also distracts from the core focus of the game by allowing players to develop a mindset of speculation and encouraging profiteering.

The game platforms, such as Microsoft, Sony and Steam, have the background of integrated entertainment companies or technology internet companies. They are characterized by investing in-game content while focusing more on enhancing underlying game technology and building a new game framework. Content manufacturers such as Capcom, Ubisoft and EA are characterized by advancing the industrialization of games.

Among them, those who take a rejection attitude towards NFT are mostly game platforms, and those who chase the NFT market are mainly content manufacturers. The entire game industry has formed two factions around NFT: game platforms are trying to maintain market stability. In contrast, game content developers choose an aggressive approach to seek business growth, such as Ubisoft.

In terms of revenue, AAA games accept one-time payments, requiring game developers to maintain income only through the development of DLC in the future. Mobile games, on the other hand, have a higher revenue ceiling and game life, and the top monthly revenue of mobile games is roughly equal to the total revenue of top AAA games.

With the advent of NFT, AAA games can now imitate mobile games. In games with an NFT marketplace, players can buy and sell NFTs at any time, and the records of each transaction are saved on the object, with the creator receiving a percentage of each transaction. In the current game industry, the creator of NFT is the game company, which gets paid every time a player makes a trade in the game. Therefore, after considering the commercial value, NFT is an option to bet on the future fate of the company. What’s your take on this topic?