Blockchain, Metaverse & Gaming: Addressing the Loot Blind Spot

The Rapid Evolution of Gaming and Emerging Trends

The rate of growth within the gaming industry is paralleled only by the swift introduction of new terminology into its sphere. Marketing professionals and decision-makers, already experiencing concern over missed opportunities in gaming, are embracing trending concepts like blockchain applications and the “metaverse” in an attempt to stay ahead of the curve.

The Interconnectedness of Blockchain, Metaverse, and Gaming

This attraction is understandable, given the logical connection between blockchain technology, the metaverse, and gaming. Gaming has consistently been at the leading edge of digital ownership – the Steam platform, for instance, popularized this concept for games and potentially other media like films. Most current metaverse visions depend on the virtual environments common in games, coupled with decentralized digital ownership.

An Interrelated Future

Regardless of individual opinions, a synergistic future for both technologies within gaming seems probable. However, the success and relevance of these trends hinge on a critical preliminary step that is currently being overlooked.

Blockchain and NFTs: A Familiar Pattern

Consider blockchain technology, specifically NFTs, as an example. Many games feature core gameplay “loops” centered around collecting items of varying rarity, often distributed randomly – for example, defeating a monster to obtain a better weapon. The acquisition of “skins,” or alternative character appearances, is a widely accepted form of microtransactions in games.

NFTs as a Natural Extension

NFTs are positioned as a logical extension, allowing rare items to possess permanent, verifiable, and publicly accessible value. Recent projects like “Loot (for Adventurers)” have pioneered a novel approach, offering NFTs as descriptions of fantasy gear that other creators can utilize to construct game worlds.

Echoes of the Past: In-Game Auction Houses

However, this concept isn’t entirely new. Game developers have long faced the issue of “farmers” – players who accumulate in-game currency and items to sell for real money, violating the game’s terms of service. The solution implemented was in-game “auction houses,” enabling players to purchase items from each other using real currency.

The Diminishment of Reward

Unfortunately, this introduced an unintended consequence. As game psychologist Jamie Madigan has observed, our brains prioritize rewards that are both unexpected and beneficial. The ability to readily acquire a known reward with real money diminished the enjoyment derived from the element of surprise and randomization.

The Risk of Financial Fast Tracks

Current discussions surrounding NFTs in gaming risk replicating this issue: undermining the core gameplay loop through a financial shortcut. The most problematic instances result in “pay to win” games, where players with substantial financial resources gain a competitive advantage.

“Play to Earn” and its Implications

Blockchain games like Axie Infinity have fueled enthusiasm for “play to earn” models, where players can potentially generate income by selling tokenized resources or characters. This scenario closely resembles “pay to win” dynamics.

The Core Question: Gameplay vs. Market Value

A crucial question remains: does the inherent quality of the game itself matter, or is the focus solely on the potential market value of NFTs and earning potential? More fundamentally, if real-world earnings are the primary objective, is it truly a game, or simply a gamified economic system?

The Need for a Humanist Approach

The technological focus surrounding blockchain often prioritizes solving complex problems that few people actually care about. A more humanist perspective is required. In the context of gaming, fundamental gameplay and psychological considerations must be addressed before these technologies can achieve widespread adoption.

The Metaverse: A Distant Reality

The metaverse provides a parallel example. Despite widespread discussion, particularly following Mark Zuckerberg’s investment in the concept, a fully realized metaverse remains elusive. The closest existing equivalents are large-scale digital game spaces like Fortnite and creative platforms like Roblox. Many brands and marketers, lacking a deep understanding of gaming, are attempting to accelerate towards an opportunity that is unlikely to materialize soon.

Gaming as the Foundation for the Metaverse

Gaming can be viewed as the foundational training for the metaverse. The ways we interact, navigate, and conceptualize virtual spaces are rooted in gaming mechanics and systems. It’s reasonable to predict that the first adopters of any “metaverse” will be gamers, already proficient in these virtual environments.

A Misdirected Focus on the Future

A recurring pattern emerges: a greater interest in the future applications of gaming, without sufficient attention to its present state. Game scholarship has expanded since the early 2000s, recognizing the influence of games on fields ranging from sociology to medicine, yet the business world has only recently begun to take notice.

Chasing the Next Big Thing

Consequently, marketers and decision-makers are pursuing the latest trends without a thorough understanding of their historical context or potential applications. The growth of gaming presents a significant opportunity, but the sophistication of the surrounding conversations remains limited due to this misdirected focus.