The Role of Blockchain in the Gaming Industry: Ownership Rights and Revenue

Industry experts at the SEG3 conference discuss the importance of ownership rights and revenue in the gaming industry, while debating the role of blockchain technology.

The gaming and Web3 industries have experienced their fair share of collapses and scandals, but they continue to thrive and innovate. At the recent SEG3 conference in Los Angeles, industry professionals gathered to discuss the importance of ownership rights and revenue in the gaming industry. While there was a consensus on the significance of these factors, opinions were divided on whether blockchain technology could play a role in achieving them.

Unreal Engine and FAB: Exploring Digital Assets
Craig Laliberte, Director of Business Development at Epic Games, took the stage to showcase the versatility of Unreal Engine. Laliberte highlighted the creation of NFL team and Fortnite animations using the powerful tool. He also introduced FAB, Epic Games’ new digital assets marketplace, clarifying that the available images were not NFTs. Laliberte emphasized that FAB would focus on standard purchases rather than blockchain-based assets.

The Gaming Industry’s Disdain for NFTs
While blockchain technology has gained popularity in various sectors, the gaming industry has shown a reluctance to embrace it. NFTs, in particular, have garnered negative attention within the gaming community, with many gamers perceiving them as money-grabbing schemes and scams. Despite this sentiment, Epic Games has allowed blockchain-based games in its Epic Game Store, signaling a potential shift in attitude.

Blockchain vs. Traditional Ownership
The concept of ownership in the gaming industry has become a topic of debate. Laliberte explained that gamers are not limited to Epic Games’ technology when it comes to owning assets. He emphasized that gamers have the freedom to take their assets wherever they want, regardless of the technology used. However, Universal Music Group’s Alvaro Velilla argued against the need for blockchain technology, stating that it should only be adopted if it serves a specific purpose or provides tangible benefits.

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The Risk Factor and Regulation
Attendees at the conference expressed reservations about engaging with blockchain technology, citing risk as a major concern. Publicly traded companies, in particular, are risk-averse due to the association with cryptocurrency market volatility, scams, and regulatory challenges. Some industry executives also questioned the necessity of blockchain, arguing that current technology already fulfills their needs without the added complexity.

The Importance of Blockchain for Ownership
Despite the skepticism surrounding blockchain technology, proponents argue that it is essential for establishing true ownership. Kyler Frisbee, CEO and co-founder of Pogs Digital, highlighted the need for a decentralized ledger, such as blockchain, to prove ownership and prevent unauthorized duplication. Frisbee compared this to the concept of physical ownership, where having control over an asset is crucial.

Conclusion:

The SEG3 conference shed light on the ongoing debate surrounding ownership rights and revenue in the gaming industry. While blockchain technology has its skeptics, there are those who believe that it is necessary for establishing true ownership and preventing unauthorized duplication. As the industry continues to evolve, the role of blockchain in gaming remains a topic of discussion and exploration.