Video Game Companies Should Think Twice about NFTs

Video Game Companies Should Think Twice about NFTs

The video game industry is at a crossroads. Enticed by the prospect of easy profits, game publishers and even a retailer like GameStop Corp. are embracing the opportunity provided by the hottest buzzword of the moment: blockchain-enabled non-fungible tokens, or NFTs. But they should reconsider.

Frustrated by sluggish sales of popular titles, game makers are on the hunt for other revenue sources. Yet any gains come with a real risk of alienating their customers, many of whom view sales of virtual goods as an intrusion on the gaming experience.

NFTs are unique collectibles stored on a blockchain that are associated with a digital asset such as images or videos. The virtual goods often come with little or no usage rights. But that hasn’t stopped the speculative frenzy over buying and selling the items.

GameStop, for example, has been working on an NFT platform that will allow creators and publishers to list gaming-related items such as outfits and weapons. On Thursday, the Wall Street Journal reported the retailer had hired more than 20 employees for the project and plans to launch its marketplace later this year. GameStop last year was among a handful of companies caught up in the meme-stock trading mania that sent