NFTs have become overwhelmingly popular over the past year, though they’ve been around for more than half a decade. Nonetheless, throughout the year 2021, these digital assets have sunk their roots into the gaming, entertainment, and media industries. In fact, these digital collectibles have become so popular that big names like the UFC, MLB, and even GRAMMYs, have announced that they’re diving into the industry.
But exactly how big are non-fungible tokens (NFTs) going to get?
According to Electronic Arts, better known as EA, these digital assets are the future of the gaming industry.
EA Says NFTs Are the Future of Gaming
EA is no little fish in the gaming industry. In fact, it’s the name behind several smash hits ranging from Madden NFL to Battlefield and FIFA 22. In fact, if you’re a gamer, chances are that you own at least a few titles made by the company. So, when the company says something of importance, the entire gaming industry tends to listen, and that’s exactly what happened today.
In a call surrounding the company’s most recent financial performance, Andre Wilson, the CEO of EA, said that NFTs and play-to-earn games are the gaming industry’s future, even though the company says it’s still a bit early to figure out how that would work out.
A New Leaf for EA
EA has long been known for developing some of the world’s most popular video games. However, throughout its history, the company has followed the traditional play-to-win model. With the statement from the CEO of the company in mind however, that model is likely to change.
In fact, the company is looking to get into Web3 development and taking part in play-to-earn games. EA hinted that it was moving in this direction when it launched a job posting looking for a blockchain and NFT expert to help in its shift.
So, why does EA want to move in the play-to-earn/NFT direction?
Well, it seems to be what the company’s audience wants to see. Games like Axie Infinity have shown that play-to-earn products easily find a solid player base if the game itself is well refined. In the Axie Infinity game, players earn in-game digital items by going through the game itself, and those digital items actually have real-life monetary value that makes it possible to sell and trade them on crypto exchanges.
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Merging Games & Collectibles
Obviously, one of the major drivers in the play-to-earn concept is the fact that players actually earn something of value when playing the games they love. In fact, even Wilson believes that collectibles will play a meaningful role in the company’s future, and he’s lining up EA to capitalize on that trend. In fact, in a statement, he said:
“So, it’s still early to tell, but I think we’re in a really good position, and we should expect us to kind of think more innovatively and creatively about that on a go-forward basis.”
EA Isn’t the Only Big Game Company Diving In
EA is a massive player in the gaming industry, but it’s not the only one out there. One of its biggest competitors is Ubisoft, and they recently shared similar intentions.
In fact, Ubisoft intends on investing in blockchain-centric gaming companies on its platform. In fact, it was one of the key participants in the NFT game developer Animoca Brands’ $65 million funding round.
The Bottom Line
The bottom line here is simple. The gaming, arts, entertainment, and media industries are changing in a big way, thanks to the invention of the NFT. These digital tokens have the ability to put something of value in the consumer’s hands when they complete a video game or make an online purchase.
As consumers continue to adopt this technology, major companies like EA, Ubisoft, and others will have to adapt to the new technology to stay ahead of the trend, and it looks like that’s exactly what they’re doing; setting the stage for the next wave of NFT innovation.