Sony and Microsoft, two of the biggest names in gaming, have made significant strides toward blockchain technology in recent years. This is an important development, as not only does it have the potential to revolutionize the gaming industry, but it could also be the Trojan horse that makes blockchain a mainstream possibility.
Sony has filed a patent for a system that will allow players to transfer digital assets between PlayStation titles using blockchain technology. This would allow for uniform progression and asset ownership across games, rather than assets being tied to individual games. Sony has also been exploring tokenizing in-game assets, allowing players to sell and trade them on secondary markets.
Leaked documents reveal that Microsoft plans to add crypto wallets to Xbox. This allows players to safely trade assets on different platforms. Microsoft’s objectives in the annual reports are also in line with this, as they pursue the acquisition of Activision Blizzard and the acquisition of Savage Game Studios for mobile. This suggests that Microsoft is serious about expanding its gaming presence and that blockchain could play a role.
Blockchain gaming is a significant opportunity, so it’s no surprise that it’s getting the attention of two gaming leaders. Estimates suggest that the market value could be up to 10% larger in 2025 than in 2022.
Key drivers of the growth of the blockchain gaming market include the increasing popularity of play-to-earn games, the growing demand for more immersive and engaging gaming experiences, and the increasing adoption of blockchain technology by game developers and publishers.
According to some estimates, the gaming market could grow by more than 10% between 2022 and 2025. Source: Newzoo.
But why blockchain anyway? The traditional gaming industry generates revenue primarily through game sales, in-game purchases, and subscriptions, often limiting player ownership of in-game assets and focusing monetization strategies on microtransactions and downloadable content ( DLC).
While tokenization has been in games since the advent of in-app purchase, blockchain’s unique properties offer true ownership of in-game assets, new revenue streams for players and creators, and more transparent and secure game economies, including the ability to players to earn real value, community governance where players can influence game development decisions, and dividend-like payouts or wagering rewards distributed to token holders.
Ownership of characters, items, and currencies also means you can trade or sell these assets on secondary markets, or use them in other blockchain games.
Can game consoles make blockchain mainstream?
This wouldn’t be the first time Sony has brought previously niche, cutting-edge technology to the masses.
In the early 2000s, Sony was one of the leading proponents of the Blu-ray disc format. Blu-ray ultimately won the format war over HD DVD and is now the standard for high definition optical discs. By teaming up with other major companies, Sony created a critical mass of support for Blu-ray, making it the dominant format.
But including a Blu-ray player in the PlayStation 3 (followed by the PS4 and PS5) will bring a cost-effective high-definition movie theater to more than 239 million homes worldwide. The year before the PS3’s launch, the average cost of a Blu-ray player was over $1,000, and it couldn’t play games, unlike the $500 console.
Today is a good day to play. We officially welcome Activision Blizzard King to Team Xbox. Together we create stories and experiences that bring players together, in a culture that empowers everyone to do their best work and celebrate diverse perspectives. https://t.co/KBCESknYYh https://t.co/jTHOeH48Wx
— Phil Spencer (@XboxP3) October 13, 2023
But the Japanese gaming giant has also dropped the ball several times. The Sony Aibo was perhaps the best home robot ever made, and it seemed clear to many that a PlayStation connection, which could play games with that capable metal dog and reprogram it, would have created the economies of scale needed to make one must make. have a purchase.
And many have noted that PlayStation Home could have an edge over anything Meta and others are creating to try and bring the metaverse to the home and office, but strangely enough it disappeared when the PS4 came to life.
Existing blockchain gaming hardware
Of course, Sony and Microsoft aren’t the first to enter the blockchain gaming niche. There are several existing blockchain gaming hardware products on the market, including the Oculus Quest 2 and HTC Vive Pro 2 VR headsets where blockchain games are available to play today, and several high-end gaming laptops are available, such as the Alienware x17 R2 and Asus ROG Zephyrus G15.
However, all of these devices feel like those early Blu-ray players in terms of cost and inaccessibility to anyone.
However, there are some options at the other end of the price scale. WOWCube is a 3D puzzle game console that allows players to interact with the digital world by rotating, shaking and tilting the device, reminiscent of a Rubik’s cube. The company behind it has announced that they are working with developers to create blockchain games that can be played on the device.
In 2021, Atari released a new version of its iconic VCS designed for blockchain gaming. It has a built-in wallet and multi-blockchain support and comes with many blockchain games including Atari Pong, Atari Breakout and Atari Asteroids. It is also possible to sideload additional blockchain games onto the VCS.
And the Anbernic RG552 is a portable retro gaming console also released in 2021. While it is aimed at those who want to play retro games, including games from the Atari 2600, Nintendo Entertainment System and Super Nintendo Entertainment System, it can also be used to play blockchain games via the open-source RetroArch emulator.
The road ahead is littered with gaming gold
Sony and Microsoft’s move to blockchain is an important development for the gaming industry. Blockchain has the potential to revolutionize the way games are designed, played and monetized.
Of course, there are challenges ahead. Web3 games have been banned from major gaming platforms and marketplaces to ban applications that issue or allow cryptocurrencies or non-fungible tokens (NFTs). However, these barriers could be lowered or eradicated with the might of two major gaming powerhouses pushing the agenda.
Major players such as Sony, Microsoft and Nintendo dominate the game console market. However, these platforms do not yet offer decentralized game development or digital asset ownership. On the other hand, several blockchain-based games exist. Yet no unified hardware platform optimizes the gaming experience for blockchain-native games, and all games are limited to PC use.
If Sony and Microsoft change the landscape, or if existing emerging solutions become wildly popular, gaming – and not financial services, real estate, voting or NFTs – could successfully bring blockchain to the masses and even have a significant impact on global technology. landscape and cultural landscape.
Maybe, like Blu-ray, gaming is the way to get it into the hands of the masses and not just the technologically gifted.
Olga Vorobyeva is the founder of Vox Consulting, a blockchain consultancy, and former head of marketing at SwissBorg, a crypto asset management platform. She is a founding member of the Swiss Blockchain Association and an advisor to startups in the Swiss ‘Crypto Valley’. She also serves as a mentor for the startup accelerator Alchemist. She holds a master’s degree from Plekhanov University of Economics and a certificate in management from the Wharton School of Business.
This article is for general information purposes and is not intended and should not be construed as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.