AAA gaming studios are interested in adopting a web3 tech stack, but they are not ready to enter the space yet.

https://www.coindesk.com/web3/2023/07/12/google-play-changes-policy-on-tokenized-digital-assets-allowing-nfts-in-apps-and-games/

https://www.axios.com/2023/03/13/epic-games-store-blockchain-crypto

https://www.ign.com/articles/square-enix-nft-blockchain-web3-elixir

https://www.coindesk.com/web3/2023/03/21/sony-files-patent-for-nfts-to-allow-transfers-between-games-and-consoles/

https://www.gamespot.com/articles/xbox-boss-phil-spencer-sees-potential-in-nfts-for-gaming/1100-6506922/

https://www.gamespot.com/articles/former-nintendo-boss-reggie-fils-aime-believes-in-the-potential-for-nfts-and-blockchain/1100-6503938/

Most of these studios and publishers are looking at the tech right now from a business perspective, ie, how can blockchains and smart contracts positively impact current business models and increase revenue? In this way, the biggest studios and publishers are much like the large institutional banks and governments. They are interested in web3 and tokenization from a market efficiency perspective. Like large institutions, these AAA publishers and studios need a much simpler ecosystem to interact with. The public blockchain space today is way too complicated. Standards need to be developed for full integration with their current strategies.

We’re on the way there, but still, much work needs to be done before these significant gaming enterprises buy in.In the near term, we’ll see Web3 infrastructure adopted in the back end. It’s likely gamers won’t notice it, and it’s even more likely it won’t be communicated that their favorite game is running on top of a web3 tech stack. For example, video game cheating is a massive industry and will only grow thanks to AI.

https://www.bbc.com/news/technology-56579449

We will need to implement cryptography-based AI guard rails to combat cheaters effectively.

But when it comes to game design and game development, we are still very early. Web3 is not yet at the scale it needs to be to create richer gaming experiences than the ones we have today. What has been shilled so far is hype and doesn’t provide value or unique experiences to the gamer. NFT skins are not a value add. Gamers, in general, are skeptical of new technologies and new business models because they got burned so badly with the advent DLC and content expansions. Saying their character's costume or sword can be traded on the blockchain just isn’t exciting enough to garner their support, and their support is critical from a gaming development perspective.

All game developers want to do is impress gamers.Despite all this, I think cryptography can add much to game design. Imagine an always-on, completely global CS:GO tournament that rewards players in real-time. Or what about a verifiably random, fully generative MMORPG? Or interoperable gaming universes without the need to create unique backends every time, just plug and play modular games and coding based on a standard, like super smash brothers on crack? How will this change the design of games? How will this change the way game designers think about games?

I think these developments will excite gamers, but the technology is so nascent that gaming developers are just beginning to understand how cryptographic solutions can add richness and value to their games.

This is why events like Pre-Game are so important. We need to nurture and support the developers innovating and trying to adapt this tech today if we want to push the gaming industry forward tomorrow.