Sony and Microsoft are two giants in the gaming field and have made significant progress in blockchain technology in recent years. This is an important development because not only does it have the potential to revolutionize the gaming industry, but it could become a Trojan horse for the possibility of blockchain becoming mainstream.
Sony has applied for a patent for a system that would allow players to transfer digital assets between PlayStation games using blockchain technology. This will enable unified progression and asset ownership across different games, rather than locking assets to a single game. Sony has also explored tokenizing in-game assets, allowing players to sell and trade them on secondary markets.
Leaked documents reveal that Microsoft is planning to add a crypto wallet to Xbox. This will allow players to safely trade assets across different platforms. Microsoft’s goals in its annual report are consistent with this, as they are looking to acquire Activision Blizzard as well as mobile-focused Savage Game Studios. This shows that Microsoft is serious about expanding its gaming business, and blockchain can play a role.
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Blockchain gaming is a significant opportunity, so it’s no surprise that it’s on the radar of two gaming leaders. It is estimated that the market value in 2025 may increase by 10% compared to 2022.
Key drivers for the growth of the blockchain gaming market include the growing popularity of playing money-making games, the growing demand for more immersive and engaging gaming experiences, and the increasing adoption of blockchain by game developers and publishers technology.
But why use blockchain in the first place? The traditional gaming industry mainly generates revenue through game sales, in-game purchases and subscriptions, often limiting players’ ownership of in-game assets and focusing monetization strategies on micro-transactions and downloadable content (DLC).
While tokenization has been in games since the advent of in-app purchases, the unique properties of blockchain provide true ownership of in-game assets, new revenue streams for players and creators, and more transparent and secure gaming Economy, including real-world value that players can earn, community governance where players can influence game development decisions, and dividend-like payouts or staking rewards distributed to token holders.
Ownership of characters, items and currencies also means you can trade or sell these assets on the secondary market or use them in other blockchain games.
Can gaming consoles make blockchain mainstream?
This isn’t the first time Sony has brought cutting-edge technology that was previously niche to the masses.
Sony was one of the main backers of the Blu-ray Disc format in the early 2000s. Blu-ray eventually won the format war against HD DVD and is now the standard for high-definition discs. By partnering with other major companies, Sony provided enough support for Blu-ray to help it become the dominant format.
But with the addition of a Blu-ray player to PlayStation 3 (and later PS4 and PS5), more than 239 million homes around the world will have a cost-effective high-definition cinema. A year before the PS3 launched, the average Blu-ray player cost more than $1,000, and unlike a $500 console, it couldn’t play games.
Today is a good day to play. We officially welcome Activision Blizzard King to the Xbox team. We will co-create stories and experiences that bring players together, creating a culture that empowers everyone to do their best and promotes diverse perspectives. https://t.co/jTHOeH48Wx
— Phil Spencer (@XboxP3) October 13, 2023
But the Japanese gaming giant has also missed the mark many times. SonyAibo is arguably the best home robot ever made, and for many, obviously, the PlayStation connection to play games with and reprogram that powerful metal dog creates economies of scale that make it a must-have. — There is a purchase.
Many people commented that PlayStation Home was probably ahead of anything Meta and others were creating in an attempt to bring the virtual world into homes and offices, but it strangely disappeared when the PS4 came along.
Existing blockchain gaming hardware
Of course, Sony and Microsoft are not the first companies to enter the blockchain gaming space. There are a variety of blockchain gaming hardware products on the market, including Oculus Quest 2 and HTC Vive Pro 2 VR headsets, which can currently play blockchain games, as well as various high-end gaming laptops, such as Alienware x17 R2 and ASUS ROG Zephyrus G15.
However, all of these devices are similar in cost and ubiquity to early Blu-ray players.
However, there are some options at the other end of the price spectrum. The company behind WOWCube, a 3D puzzle game console that allows players to interact with the digital world by twisting, shaking and tilting the device, reminiscent of Magic Cubes, has announced that they are working with developers to create blockchain games that can be played on play on the device.
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In 2021, Atari released a new version of its iconic VCS designed specifically for blockchain games. It has a built-in wallet, supports multiple blockchains, and comes pre-installed with many blockchain games, including Atari Pong, Atari Breakout, and Atari Asteroids. Additional blockchain games can also be sideloaded onto VCS.
The Anbernic RG552 is a handheld retro gaming console also released in 2021. While it’s aimed at those who want to play retro games, including those from the Atari 2600, Nintendo Entertainment System, and Super Nintendo Entertainment System, it can also be used to play retro games. Run blockchain games through the open source RetroArch emulator.
The road ahead is filled with gaming gold
Sony and Microsoft’s move toward blockchain is a major 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 are excluded from important gaming platforms and markets to ban apps that issue or allow the exchange of cryptocurrencies or non-fungible tokens (NFTs). However, with the power of two gaming giants pushing this agenda, these barriers may be lowered or eliminated.
Important players such as Sony, Microsoft and Nintendo dominate the gaming console market. However, these platforms do not yet offer decentralized game development or digital asset ownership. On the other hand, there are various blockchain-based games. Despite this, there is no unified hardware platform to optimize the gaming experience of blockchain-native games, and all games are limited to PC use.
If Sony and Microsoft change the landscape, or any of the existing emerging solutions become wildly popular, gaming (as opposed to financial services, real estate, voting, or NFTs) could successfully bring blockchain to the masses, perhaps even to the world. Technology has a major impact on landscapes and cultural landscapes.
Perhaps, like Blu-ray, gaming is a way to deliver it to the general public rather than just the technical geniuses.
Olga Vorobyeva He is the founder of blockchain consulting firm Vox Consulting and the former marketing director of crypto wealth management platform SwissBorg. She is a founding member of the Swiss Blockchain Association and an advisor to new startups in Switzerland’s “Crypto Valley.” She also serves as a mentor at the Alchemist startup accelerator. She holds a master’s degree from the Plekhanov University of Economics and a certificate in management from the Wharton School of Business.
This article is for general information purposes only and is not intended to be, and should not be construed as, legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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