SQNNY - What Do NFTs Mean for the Gaming Industry?
Many video game companies have launched non-fungible token (NFT) projects over the past year. Ubisoft (OTC: UBSFF) released NFTs for Ghost Recon: Breakpoint , Konami (OTC: KNAMF) auctioned off NFTs for its classic Castlevania series, and Square Enix (OTC: SQNNY) sold its biggest Western developers -- including the creators of Tomb Raider and Deus Ex -- to fund the development of new blockchain and NFT projects.
But will NFT projects generate meaningful revenues for gaming companies? Let's review the potential profits and pitfalls.
NFTs, like cryptocurrencies, are minted on a decentralized ledger called a blockchain. But unlike cryptocurrencies, they aren't "fungible," or equivalent to each other. For example, a single Bitcoin can be directly traded for another Bitcoin because they have the same inherent value. NFTs can't be exchanged that way because they contain data that is linked to a digital asset like a picture, video, or song.
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What Do NFTs Mean for the Gaming Industry?