A lot of information came out during the FTC’s case against Microsoft’s acquisition of Activision in 2023. One of the more interesting pieces of information came from a redacted document of internal slides. These slides showed that Microsoft was considering integrating a cryptocurrency wallet into its next-gen console.
The slides pointed to a Microsoft solution, suggesting that the tech giant would likely develop the wallet itself. Unfortunately, since news of the documents was released, there has been little movement and certainly no official statement on Xbox’s crypto wallet.
Crypto Gaming
That’s not to say that the idea of an Xbox crypto wallet is dead, or that there’s no hope for blockchain gaming. Indeed, blockchain gaming continues to go from strength to strength with new games like Illuvium, billed as being the world’s first interoperable blockchain game, launching.
Meanwhile, Tether dice games and crypto casino games also go from strength to strength. Online casino gaming arguably leads the way, with a host of iGaming companies launching their own coins as well as offering anonymous, secure gaming opportunities. Â
Sony’s Soneium
In traditional gaming, Sony has released its own layer 2 blockchain, Soneium, which the Japanese company has said has the aim of bridging the gap between Web 2.0 and Web 3.0 and across entertainment, gaming, finance, and electronics, suggesting that it could find use on Sony consoles, as well as their expansive range of other products, in the future.
A Layer 2 Blockchain
In August of this year, Sony and its partner in the project Startale Labs announced the launch of an Ethereum-based layer 2 blockchain that they hope will attract DApp developers. Sony has also previously stated its intent to adopt non-fungible tokens to allow the transfer and use of digital assets between game platforms.
The Big Three
Sony and Microsoft represent two of the biggest names in the gaming sector, along with Nintendo. Although Nintendo previously expressed an interest in the blockchain sphere, especially in the use of NFTs, there has been little crypto-related noise coming from the company in recent years.
Blockchain Gaming Potential
Blockchain gaming has a lot of potential for gamers, developers, and the platforms they are based on. Sony has highlighted one of the biggest potential benefits, in the use of NFTs to tokenize in-game assets.
NFT Tokenization
NFTs are minted on blockchain and can, effectively, contain any information. In the case of gaming NFTs, this can include player account details and in-game assets like avatars, skins, weapons, and anything else. Even spells and specific attack combos could be tokenized in this way.
Once tokenized, the assets would essentially become the property of the gamer. Currently, all assets remain the property of the game developer or platform. If the player closes their account, the assets are typically lost. If they stop playing, their items remain on the server and are effectively never used. With tokenized assets, if a player stops playing or if they want to monetize their gaming efforts, they could sell the NFTs directly to other players or list them on open marketplaces.
This gives some players the opportunity to enhance their gaming experience by getting hold of potential end-game items as soon as they start, although this will likely lead to accusations of pay-to-win.
Collaboration Required
Currently, even if a AAA title launches on the blockchain, using NFTs, it wouldn’t offer the kind of flexibility that blockchain gaming could boast. The items wouldn’t be transferrable to other games because those other games don’t have the capability to accept or utilize the NFTs.
This is where blockchain gaming really needs platform owners like Sony or Microsoft to get involved. They could establish a blockchain ecosystem, developed on their own network, that incorporates other games. It would make it possible, theoretically at least, to bring items from one game to another.
While gaming companies are somewhat insular, there is a recent history of games collaborating with one another. Fortnite Season X featured a crossover with Borderlands, which is currently gearing up for its fourth installment, and has regularly featured crossovers with other franchises from outside gaming, including both Marvel and DC and even the Football League.
This kind of collaboration at least points to the possibility that franchise owners can work together at least to some extent.
Square Enix’s Blockchain Efforts
While Microsoft has gone quiet on its crypto wallet, Sony is seemingly picking up the mantle, and it isn’t the only major gaming company to do so. Square Enix, creators of franchises like the Final Fantasy and Dragonquest series, partnered with web3 gaming platform Elixir with the stated aim of bringing blockchain games and features to traditional gamers. The company has also released Final Fantasy NFTs and has claimed a commitment to investment in Web 3.0 gaming development.
