Are NFTs the Next Gaming Accessory?

With the metaverse taking off, many are rushing to cash in on the multitude of opportunities this new virtual environment may bring to the table. For one, Microsoft’s proposed acquisition of Activision is geared specifically towards that. As blockchain technology continues to take off and the likes of Twitter co-founder, Jack Dorsey, renames his Square company to Block, the frenzy on all things digital and virtual is not fizzling out any time soon.

NFTs, or non fungible tokens, are appearing in art, entertainment, business and yes, gaming as well. But nowhere have the blockchain certified digital assets seen as much rejection as in the gaming world. Venture capital firms, art aficionados and eccentrics around the globe are fascinated by the new trend. But gamers are not buying it. Many have taken to social media to voice their discomfort about being sold “snake oil” and the companies trying to “nickel and dime them” without adding any value to the gaming experience.

Depending on the games, gaming NFTs come in the form of digital attire, tools, weapons or other paraphernalia. Some are actually expected to work within various games. But at the end of the day, none are perceived by gamers as enhancing the experience, let alone making you a better gamer. And this has built a heightened sense of gamer antagonism towards the gaming companies, many of which have been growing the number of micro transactions to increase their profits. NFTs are simply seen as yet another attempt at getting more cash out of gamers.

Gaming companies claim profits are not the motivation behind introducing NFTs into the gaming universe, but rather to introduce fans to fun collectibles plus a new way for them to make money by selling them. Yet, some companies like Sega Samy, maker of the Sonic the Hedgehog game and Ubisoft, maker of the Assassin’s Creed game, have expressed concern about the consumer outrage and are reconsidering pulling the NFTs out. Other companies, like Microsoft’s Xbox have commented they regard the initiatives as exploitative and plan to ban such games from the Xbox store.

The jury is out on whether mainstream consumers will embrace the tokens or the outrage will force companies to give up on them. There are unknown expectations on how the further development of the metaverse may motivate consumers to further enhance their experience or purists to reject it altogether. The global gaming accessories market was valued at some $7.75 billion in 2020 with a projected CAGR of 12.2% through 2026. From controller grips to goggles, advanced gaming keyboards and game pads, consumers certainly show an appetite to enhance their gaming experience. The question is will NFTs be added to the list?