NFT Games Have An Advantage Over ‘Money In, No Money Out’ Games In The Following Ways

As more of the publishers’ games are made accessible to be played on blockchain, new forms of non-traditional gaming (NFT) could emerge as an interesting and potentially lucrative business model for the industry.
The vice president of worldwide business development for gaming at Polygon, Urvit Goel, is of the opinion that traditional games that do not permit players to sell their in-game products have an inherent competitive disadvantage when compared to games that incorporate nonfungible tokens (NFTs).

In an interview that took place the week before last in Seoul, Goel was asked about Polygon’s efforts to assist in the spread of NFT games and the reasons why game companies in South Korea such as Neowiz and Nexon are swimming headfirst into the field. He answered these questions openly.

One of the most important points that Goel made was that the conventional business model, which non-fantasy trading card games are contending with, may be intrinsically inferior. Users generally purchase in-game products with real money when playing traditional video games, but they are unable to recoup any portion of the value of those items through the sale of those items.

On the other hand, players are able to buy products in the form of nonfungible tokens in the vast majority of games that fall under the gaming finance (GameFi) category, and then sell those items when they are finished playing the game. Goel alluded to the conventional business model as “money in, no money out,” and he underlined that players should be able to receive back at least a portion of the monetary value they invest in a game:

Simply said, we want to provide users with the option to actually own the content that they pay for. And if they decide to keep it, that’s terrific too; but if they decide to sell it, that’s fine too […] However, even if you only get a dime back out of it, that’s better than getting nothing at all, right?”

According to Goel, he has seen obvious indications that traditional game publishers are getting ready to make major pushes into GameFi, beginning with the gaming giant Nexon from South Korea, which is the owner of the MapleStory title. According to mmorpg, a media outlet that covers gaming news, the company made the announcement in June that it would release a version of its main title on-chain under the name MapleStory N.

Additionally, Polygon has collaborated with the South Korean company Neowiz to bring both new and pre-existing titles onto the blockchain.

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He made the observation that the entry of such major firms into the market is producing “a little bit of a domino effect” in order to “prove that they’re still inventive.” Goel made a sly allusion to the fact that the executives in charge of the large companies that are joining the blockchain arena must have a tremendous degree of faith in the technology; otherwise, they wouldn’t dress up their best games for GameFi.

“It is not necessary for these developers to join the blockchain in order to run profitable enterprises. They are already producing hundreds of millions of dollars in revenue, if not billions of dollars, through typical web teaming.

In a recent interview, ROK Capital’s Anthony Yoon noted that GameFi and cryptocurrency are a “natural fit” for publishers. Goel’s ideas regarding gaming and blockchain are consistent with what Yoon said in this interview.

In a related article, a game developer argues why blockchain technology should be “invisible” in player-to-player gaming: KBW 2022

The excitement that has been building up in both of the groups contributes to Goel’s belief that NFT gaming and GameFi have a very promising future. Despite the fact that he claimed he did not have any concrete evidence to back up his opinion, he is of the belief that a great number of people inside major communities who have “millions of followers” are thrilled about the new game goods that are being brought to their channels:

“Therefore, in my opinion, that data talks a great deal more loudly than an article produced by a journalist on the reasons why ‘X’ NFT’s will be beneficial.”

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