The New York Times: The expansion of blockchain games is facing resistance from traditional gamers

Authors: Mike Isaac, Kellen Browning

Original Title: “Crypto Enthusiasts Meet Their Match: Angry Gamers”

Translated by: Hu Tao, Chain Catcher
For years, Christian Lantz has been playing STALKER, a first-person shooter set in a post-apocalyptic Ukraine, which has gained popularity for its immersive role-playing. So when the 18-year-old high school student heard that a sequel to the game was being made this year, he knew he had to buy it.
That was until last month when the Ukrainian company GSC Game World behind the game software announced that the new STALKER would include crypto-based assets known as non-fungible tokens or NFTs. GSC stated that in the new game, players could buy and sell NFTs for items like outfits for their characters. The company claimed this move was a "transformative step" toward a virtual world known as the metaverse.
Lantz was furious. He joined thousands of fans on Twitter and Reddit who opposed NFTs in the STALKER sequel. They argued that the game maker was just trying to squeeze more money from players. The strong backlash led GSC to quickly reverse course and abandon its NFT plans.
"The studio abused its notoriety," said Mr. Lantz, who lives in Ontario. "It's clear that this was for profit, not just to create a nice game."

Image from a still of “STALKER 2”
For more than a year, the crypto industry has been in a frenzy. The value of cryptocurrencies like Bitcoin and Ethereum has soared. Crypto-based assets like NFTs have taken off. Twitter founder Jack Dorsey recently renamed one of his companies Block to honor blockchain, a distributed ledger system that powers digital currencies. Melania Trump auctioned her own NFT. Supporters hope that blockchain will revolutionize industries from finance to social media to art.
But for some, the crypto craze has gone too far, too fast. Skeptics argue that cryptocurrencies and related assets like NFTs are digital Ponzi schemes, with prices artificially inflated beyond their true value. Some question whether the nebulous concepts of cryptocurrencies and blockchain have any long-term utility.
Nowhere is this more evident than in the gaming community, where conflicts between users and major game studios like Ubisoft, Square Enix, and Zynga over crypto are becoming increasingly common. In many encounters, gamers have come out on top—at least for now.
"People are buying into the buzzwords," said Mutahar Anas, a gamer and YouTuber with 3 million subscribers. He said those pushing NFTs in games are "trying to sell you snake oil."
In recent months, at least six game studios have revealed plans to add NFTs to their games or indicated they are considering doing so, offering authenticity and proof of ownership for digital assets verified through blockchain technology. Game makers say this provides gamers with unique digital items and enriches the online marketplace for those selling NFTs. Game publishers also suggest that NFTs could potentially transfer between games in the future, meaning items from one game franchise could affect gameplay in another.
But players say they view these moves as blatant cash grabs.
"I just hate how they keep trying to find ways to scam us in any way possible," said 22-year-old gamer Matt Kee. Kingdom Hearts has indicated it is moving forward with NFTs. "I don't see anywhere that mentions how this benefits gamers or improves gameplay. It's always about 'How can I make money off this?'"

Image from “Kingdom Hearts III” produced by Square Enix
Much of their discontent stems from the encroachment of microtransactions in games. For years, game makers have found more ways to profit from users by charging them to upgrade characters or enhance gameplay within the game. Even when people have already prepaid $60 or more for a game, they are asked to pay even more for digital items like outfits or weapons for characters.
In a notorious incident in 2006, the role-playing game "The Elder Scrolls IV: Oblivion" charged users $2.50 for a set of armor for their character's horse.
"'It's only a few bucks, but I remember thinking at the time, 'Why don't they just give us horse armor?'" said Eric Hild, a 31-year-old brewer from Decorah, Iowa. "'Why make us pay for it?'"
Merritt K, a game streamer and editor at the gaming industry site Fanbyte, said hostility from gamers toward these companies has increased over the past decade, partly due to the rising number of microtransactions. So when game makers introduced NFTs as an additional element for buying and selling, she said players "were ready to blow these things up."
This has led to gamer outrage, which has unsettled game companies. In December, Sega Sammy, the developer of the Sonic the Hedgehog game, expressed reservations about its NFT and crypto plans after user "negative feedback." Ubisoft, the maker of games like Assassin's Creed, stated that it misjudged the level of customer dissatisfaction after announcing its NFT plans last month. More than 90% of viewers disliked YouTube videos about the move.
"Maybe we underestimated the intensity of the backlash," said Nicolas Pouard, Ubisoft's vice president in charge of the company's new blockchain initiatives.
Game companies say their NFT plans are not profit-driven. Instead, they claim NFTs offer fans some fun collectibles and provide them with a new way to make money by selling assets.
"It's really about the community," said Matt Wolf, an executive at mobile game maker Zynga, who is leading the charge into blockchain gaming. "We believe in giving people the opportunity to play to earn."
In recent years, the embrace of crypto in gaming has intensified. Some developers have begun building games on the blockchain, allowing players to easily collect digital assets and prove ownership of them. One such game is CryptoKitties, a hit from 2017 where players collect digital cats, some of which have sold for over $100,000. During the COVID-19 pandemic, blockchain-based games like Axie Infinity (where players earn and sell NFTs) also became popular.
Larger game studios are now trying to get in on the action, although some of their crypto plans remain vague.
Ubisoft was the first major game publisher to venture into crypto. In December, it announced a plan called Ubisoft Quartz, launching three sets of NFTs in the form of digital gear like helmets and guns. NFTs were offered for free to players who reached certain levels in the shooting game Ghost Recon Breakpoint. The company stated that gamers could keep these items or sell them on third-party markets.

Ghost Recon Breakpoint game station at the Electronic Entertainment Expo in Los Angeles in 2019.
Mr. Pouard said that so far, 10,000 digital wallets have connected to the Quartz platform, although Ubisoft has only minted 3,000 NFTs in the first batch. He said this indicates future interest in more NFTs.
Pouard added that Ubisoft ultimately plans to take a cut from the sales of future NFTs. "We are transitioning from a business model focused on games to one focused on an ecosystem where every player can be a stakeholder," he said.
Zynga, which is set to be acquired by Take-Two, hired industry veteran Mr. Wolf in November to lead a crypto initiative. Mr. Wolf said the goal is to create new games on the blockchain that make it easier for players to acquire, own, and sell NFTs. He provided few details about how this initiative would work, including whether NFTs could transfer between Zynga games.
"We're still developing all of this," he said.
Other game companies are also getting into NFTs, echoing how cryptocurrencies can create new wealth for users. This month, Square Enix President Yosuke Matsuda wrote in an open letter that creating blockchain games could allow players to make money. He said this would become a "major strategic theme" for the company.
But as the number of NFT announcements from game studios increases, players are becoming more and more frustrated. After user opposition to Sega Sammy's crypto plans, one of its executives stated at a management meeting last month, "If this is seen as simply making money, I want to decide not to proceed."
Other game companies have stepped up to oppose cryptocurrencies. Phil Spencer, head of Microsoft Xbox, told Axios in November that some games centered around making money through NFTs seem "exploitative," and he would avoid putting them in the Xbox store. Microsoft declined to comment.
Valve, which owns the online game store Steam, also updated its rules last fall to ban blockchain games that allow the exchange of cryptocurrencies or NFTs. Valve did not respond to requests for comment.
Tim Sweeney, CEO of Epic Games, the maker of the game Fortnite, stated that his company would avoid using NFTs in its games due to the industry being rife with "various tricky scams." (Epic will still allow developers to sell blockchain games in its online store.)
This backlash is affecting more than just game studios. The popular social platform Discord retreated in November after users threatened to cancel their paid subscriptions over its crypto plans. Discord CEO Jason Citron mocked the project on Twitter, sparking a rebellion.
"While I am optimistic that a lot of cool things are happening in the blockchain space, there are also a lot of issues," Mr. Citron said in an interview.
Gamer Mr. Kee stated that he will continue to fight against game companies' crypto efforts. He said the STALKER developers' shift on NFTs gives him hope that other companies can be influenced by public opinion.
"This gives me a good feeling that everyone is against this," he said. "We've seen all sorts of these plans over the past decade, and we're tired of it."