Video games have been seen as one of the premier industries for NFTs to flourish. Yet, most gamers hate the idea. There has been an extreme backlash against NFTs in gaming for many reasons stemming from the current economic models present in video games.

However, concepts such as the metaverse and digital ownership seem perfect for the media. So, why are gamers so averse to GameFi?

What is GameFi

GameFi, or gaming and finance, is the broad term for games built using blockchain mechanics. These games can include specific cryptocurrencies and NFTs to generate economic incentives and provide players with additional depth in games by directly owning specific in-game assets.

The play-to-earn model takes these blockchain capabilities and allows players to generate a degree of income from their time spent in game. 

These profits can be used to buy and trade different items or services in-game. They can also be withdrawn and used for other purposes such as DeFi, NFTs, and converting to fiat. 

This concept has yet to appeal to many gamers who view GameFi as incorporating a new dimension to video games that are not focused on improving the quality of entertainment, but rather on creating additional revenue for the industry. 

The current state of microtransactions in gaming

Much of the hesitation around GameFi comes from gamers’ negative experiences with pay-to-win models. Microtransactions, games as a service, and repetitive products such as popular sports games have slowly eroded the joy of gaming for many that grew up with interactive media. 

Games such as Diablo Immortal, Genshin Impact, and FIFA have all received intense backlash for their reliance on in-game purchases. In many cases, these economic models have taken priority over quality gaming which has agitated many players. 

Why gamers don’t want NFTs

To most gamers, NFTs in video games represent a deeper push down the path of microtransactions. It’s a justifiable concern; gamers are worried that the integrity of their games is weakening and will only encourage players to spend more on in-game features. That concern only gets compounded further when coupled with NFTs which have already garnered a poor reputation in the eyes of the general public. 

There is a common belief that NFTs are just an expensive gimmick that offers no real value and is only tied to hype and scams. Forcing this product onto gamers at a time when they are already feeling manipulated by microtransactions comes off like a slap in the face from the companies they already support with their wallets. 

There’s no desire for more microtransactions and there’s a fear that gamers will soon be forced to buy NFTs to fully enjoy a game that they have already paid retail price for. 

So, how can the blockchain be incorporated into gaming correctly?

Play-to-Earn needs to be entertaining

At its core, a video game needs to be fun. Through every challenge, adventure, achievement, win, loss, or development - gamers want to enjoy the games they play. 

One of the major criticisms about GameFi is that it doesn’t establish entertainment value. The fact that a player can own a digital item or earn real currencies is unappealing. Gaming is not meant to make a player wealthy, it is meant to make them entertained. 

For web3 to be accepted by the gaming community, game developers need to find a way to incorporate NFTs and cryptocurrency into games without making them intrusive or necessary.

Overpowered NFTs that provide an obvious advantage over other players or enemies won’t make gamers happy. NFTs need to be incorporated into games in a way that establishes excitement or mystery, not blatant pay-to-win mechanics.

How do blockchains improve games?

Web3 has the potential to improve the gaming experience in a way that doesn't require players to pay additional charges or fees. 

1. Loot

Crawling dungeons has been the trademark of RPGs since tabletop gaming first began. It is a quintessential aspect of video games that has created some of the most immersive games such as World of Warcraft, Diablo II, and The Elder Scrolls series. 

By incorporating hidden NFTs within dungeons during offline and online campaigns, gamers can be rewarded with loot which transcends the game world and resides directly within the gamers’ crypto wallet. 

Unlike tabletop gaming or web2-based cRPG’s, this level of ownership can only be obtained through the use of a blockchain; giving players the ability to reach into the game’s universe and pull out actual pieces of the games to keep as their own. 

2. Trophies

Competitive gaming and eSports have been on the rise following the growing success of games including League of Legends, Counter Strike, Dota 2, and Rocket League. 

The companies behind these games, such as Steam and Riot Games, host some of the largest video game tournaments in the world with grand prizes surpassing millions of dollars. 

There is no harm to these games by including NFT trophies for the winners. It’s a mark of excellence that can be displayed on a team’s in-game trophy cabinet. 

Whether a player chooses to continue playing such a game or moves onto a new game, their trophy will always reside with them on the blockchain as evidence of their accomplishments. 

3. Guild Memberships

Joining a guild can be one of the most exciting parts of any online adventure game. They offer strong communities and additional benefits to players looking to enjoy their adventures with like-minded players. 

Similar to alpha groups, creating a membership token that grants players access to specific guilds is another example of harmless web3 integration. 

However, this application goes beyond just one game. By owning a guild membership, players are connected to a gaming community which exists outside of an individual game as well. 

This means that players would be able to discuss, interact, and plan adventures in all types of games which would expand their guild beyond just one gaming universe.

4. Cosmetics

Skins are one of the most obvious examples of how NFTs are expected to be integrated into gaming. 

Although games already have centralized marketplaces for players to buy new skins, NFTs would offer players the ability to exchange skins and other cosmetics directly with each other which is not a standard feature in most games. 

While this would be an example of microtransactions, it is not a pay-to-win model. Skins are purely cosmetic items that have no impact on game conditions. Among current microtransactions, cosmetics receive the least amount of criticism from gamers due to their inability to alter player performance. 

The future of web3 gaming

Despite the massive backlash from gamers against NFTs, web3 has the capabilities to enhance the gaming experience when done correctly. The array of applications that blockchain can provide to video games is massive. 

Video games are the perfect place for web3 to gain a strong following, but it can only happen if the video game industry makes these decisions with entertainment and community in mind, not profits. 

Just like any NFT collection, the community is who ultimately decides the value of a project and if gamers are ignored then gamefi will never reach its potential.