<s>
Video	O
games	O
that	O
include	O
elements	O
that	O
use	O
blockchain	B-Application
technologies	I-Application
,	O
including	O
cryptocurrencies	O
and	O
non-fungible	O
tokens	O
(	O
NFTs	O
)	O
,	O
allow	O
players	O
to	O
buy	O
,	O
sell	O
,	O
or	O
trade	O
in-game	O
items	O
with	O
other	O
players	O
.	O
</s>
<s>
A	O
subset	O
of	O
these	O
games	O
are	O
also	O
known	O
as	O
play-to-earn	B-Protocol
games	O
because	O
they	O
include	O
systems	O
that	O
allow	O
players	O
to	O
earn	O
cryptocurrency	O
through	O
gameplay	O
.	O
</s>
<s>
Blockchain	B-Protocol
games	I-Protocol
have	O
existed	O
since	O
2017	O
,	O
gaining	O
more	O
widespread	O
attention	O
from	O
the	O
video	O
game	O
industry	O
in	O
2021	O
.	O
</s>
<s>
Players	O
,	O
developers	O
,	O
and	O
game	O
companies	O
have	O
criticized	O
the	O
use	O
of	O
blockchain	B-Application
technology	I-Application
in	O
video	O
games	O
for	O
being	O
exploitative	O
,	O
environmentally	O
unsustainable	O
,	O
and	O
unnecessary	O
.	O
</s>
<s>
Blockchain	B-Application
technology	I-Application
,	O
such	O
as	O
cryptocurrencies	O
and	O
NFTs	O
,	O
are	O
potential	O
monetization	O
routes	O
for	O
video	O
games	O
.	O
</s>
<s>
Blockchain	B-Protocol
games	I-Protocol
typically	O
allow	O
players	O
to	O
trade	O
in-game	O
items	O
for	O
cryptocurrency	O
,	O
which	O
can	O
then	O
be	O
exchanged	O
for	O
money	O
,	O
which	O
may	O
sidestep	O
some	O
problems	O
associated	O
with	O
gray	O
markets	O
due	O
to	O
blockchain	B-Application
's	O
traceability	O
.	O
</s>
<s>
The	O
first	O
known	O
game	O
to	O
use	O
blockchain	B-Application
technologies	I-Application
was	O
CryptoKitties	B-Protocol
,	O
launched	O
by	O
Axiom	O
Zen	O
in	O
November	O
2017	O
for	O
personal	O
computers	O
.	O
</s>
<s>
A	O
player	O
would	O
purchase	O
NFTs	O
with	O
Ethereum	B-Application
cryptocurrency	O
,	O
each	O
NFT	O
consisting	O
of	O
a	O
virtual	O
pet	O
that	O
the	O
player	O
could	O
breed	O
with	O
others	O
to	O
create	O
offspring	O
with	O
combined	O
traits	O
as	O
new	O
NFTs	O
.	O
</s>
<s>
CryptoKitties	B-Protocol
also	O
exposed	O
scalability	O
problems	O
for	O
games	O
on	O
Ethereum	B-Application
when	O
it	O
created	O
significant	O
congestion	O
on	O
the	O
Ethereum	B-Application
network	O
shortly	O
after	O
its	O
launch	O
,	O
with	O
approximately	O
30%	O
of	O
all	O
Ethereum	B-Application
transactions	O
at	O
the	O
time	O
being	O
for	O
the	O
game	O
,	O
and	O
with	O
the	O
congestion	O
delaying	O
players	O
 '	O
transactions	O
.	O
</s>
<s>
Axiom	O
Zen	O
feared	O
that	O
Ethereum	B-Application
would	O
further	O
struggle	O
after	O
they	O
launched	O
the	O
mobile	O
version	O
of	O
the	O
game	O
,	O
particularly	O
with	O
an	O
influx	O
of	O
users	O
from	O
China	O
.	O
</s>
<s>
The	B-Application
Sandbox	I-Application
is	O
a	O
platform	O
that	O
bought	O
the	O
brandname	O
of	O
a	B-Application
2012	I-Application
crafting	I-Application
game	I-Application
of	I-Application
the	I-Application
same	I-Application
name	I-Application
,	O
in	O
2018	O
.	O
</s>
<s>
Axie	B-Protocol
Infinity	I-Protocol
,	O
released	O
in	O
2018	O
by	O
Sky	O
Mavis	O
,	O
is	O
an	O
example	O
of	O
a	O
"	O
play-to-earn	B-Protocol
"	O
game	O
,	O
where	O
the	O
game	O
incentivizes	O
players	O
to	O
purchase	O
and	O
then	O
improve	O
NFTs	O
through	O
in-game	O
activities	O
which	O
are	O
then	O
resold	O
to	O
other	O
players	O
by	O
the	O
publisher	O
,	O
with	O
the	O
player	O
receiving	O
compensation	O
for	O
their	O
work	O
.	O
</s>
<s>
However	O
,	O
following	O
an	O
early	O
2022	O
hack	O
which	O
saw	O
over	O
$600	O
million	O
stolen	O
from	O
Axie	B-Protocol
Infinity	I-Protocol
publisher	O
,	O
the	O
game	O
saw	O
a	O
large	O
drop	O
in	O
players	O
and	O
impacting	O
the	O
game	O
's	O
economy	O
.	O
</s>
<s>
Sky	O
Mavis	O
removed	O
references	O
to	O
"	O
play-to-earn	B-Protocol
"	O
on	O
its	O
websites	O
and	O
marketing	O
as	O
its	O
tokens	O
plummeted	O
in	O
value	O
.	O
</s>
<s>
In	O
mid-2018	O
,	O
Ubisoft	O
became	O
a	O
founding	O
member	O
of	O
the	O
Blockchain	B-Protocol
Game	I-Protocol
Alliance	O
(	O
BGA	O
)	O
alongside	O
several	O
blockchain	B-Application
companies	O
.	O
</s>
<s>
The	O
BGA	O
is	O
a	O
consortium	O
of	O
several	O
companies	O
active	O
in	O
the	O
blockchain	B-Application
space	O
that	O
seeks	O
to	O
explore	O
the	O
potential	O
applications	O
of	O
this	O
technology	O
in	O
the	O
video	O
game	O
industry	O
and	O
publicly	O
promotes	O
the	O
use	O
of	O
blockchain-based	O
content	O
in	O
video	O
games	O
.	O
</s>
<s>
By	O
the	O
early	O
2020s	O
there	O
had	O
not	O
been	O
a	O
breakout	O
success	O
in	O
video	O
games	O
using	O
blockchain	B-Application
.	O
</s>
<s>
Such	O
games	O
tended	O
to	O
focus	O
on	O
using	O
blockchain	B-Application
for	O
speculation	O
instead	O
of	O
more	O
traditional	O
forms	O
of	O
gameplay	O
,	O
and	O
this	O
offers	O
limited	O
appeal	O
to	O
most	O
players	O
.	O
</s>
<s>
However	O
,	O
limited	O
successes	O
of	O
some	O
games	O
,	O
such	O
as	O
Axie	B-Protocol
Infinity	I-Protocol
during	O
the	O
COVID-19	O
pandemic	O
,	O
and	O
increasing	O
corporate	O
interest	O
in	O
metaverse	O
content	O
,	O
refueled	O
interest	O
in	O
the	O
area	O
of	O
GameFi	O
—	O
a	O
term	O
describing	O
the	O
intersection	O
of	O
video	O
games	O
and	O
financing	O
,	O
typically	O
backed	O
by	O
blockchain	B-Application
currency	O
—	O
in	O
the	O
second	O
half	O
of	O
2021	O
.	O
</s>
<s>
By	O
the	O
end	O
of	O
2021	O
,	O
several	O
major	O
publishers	O
,	O
including	O
Ubisoft	O
,	O
Electronic	O
Arts	O
,	O
Take	O
Two	O
Interactive	O
,	O
and	O
Square	O
Enix	O
,	O
stated	O
that	O
blockchain	B-Application
and	O
NFT-based	O
games	O
were	O
under	O
serious	O
consideration	O
for	O
their	O
companies	O
in	O
the	O
future	O
.	O
</s>
<s>
In	O
October	O
2021	O
,	O
Valve	O
Corporation	O
banned	O
blockchain	B-Protocol
games	I-Protocol
,	O
including	O
those	O
using	O
cryptocurrency	O
and	O
NFTs	O
,	O
from	O
being	O
hosted	O
on	O
its	O
Steam	B-Application
digital	O
storefront	O
service	O
,	O
which	O
is	O
widely	O
used	O
for	O
personal	O
computer	O
gaming	O
.	O
</s>
<s>
Valve	O
's	O
prior	O
history	O
with	O
gambling	O
,	O
specifically	O
skin	O
gambling	O
,	O
was	O
speculated	O
to	O
be	O
a	O
factor	O
in	O
the	O
decision	O
to	O
ban	O
blockchain	B-Protocol
games	I-Protocol
.	O
</s>
<s>
Valve	O
's	O
CEO	O
Gabe	O
Newell	O
explained	O
in	O
a	O
later	O
interview	O
that	O
while	O
he	O
believed	O
blockchain	B-Application
technology	I-Application
was	O
legitimate	O
,	O
the	O
company	O
felt	O
there	O
were	O
too	O
many	O
bad	O
actors	O
in	O
the	O
market	O
at	O
the	O
time	O
to	O
allow	O
cryptocurrency	O
or	O
NFTs	O
onto	O
Steam	B-Application
.	O
</s>
<s>
Journalists	O
and	O
players	O
responded	O
positively	O
to	O
Valve	O
's	O
decision	O
,	O
as	O
blockchain	B-Application
and	O
NFT	B-Protocol
games	I-Protocol
have	O
a	O
reputation	O
for	O
scams	O
and	O
fraud	O
among	O
most	O
PC	O
gamers	O
,	O
while	O
blockchain	B-Protocol
game	I-Protocol
publishers	O
and	O
developers	O
urged	O
Valve	O
to	O
reconsider	O
their	O
position	O
.	O
</s>
<s>
Epic	O
Games	O
,	O
which	O
runs	O
the	O
Epic	O
Games	O
Store	O
in	O
competition	O
to	O
Steam	B-Application
,	O
said	O
that	O
they	O
would	O
be	O
open	O
to	O
accepting	O
blockchain	B-Protocol
games	I-Protocol
,	O
in	O
the	O
wake	O
of	O
Valve	O
's	O
refusal	O
.	O
</s>
<s>
In	O
December	O
2021	O
,	O
Ubisoft	O
announced	O
the	O
Ubisoft	O
Quartz	O
program	O
,	O
based	O
on	O
the	O
proof	B-Protocol
of	I-Protocol
stake	I-Protocol
Tezos	B-Protocol
cryptocurrency	O
,	O
which	O
Ubisoft	O
claimed	O
was	O
more	O
energy	O
efficient	O
.	O
</s>
<s>
The	O
service	O
launched	O
with	O
items	O
in	O
Tom	B-Application
Clancy	I-Application
's	I-Application
Ghost	I-Application
Recon	I-Application
Breakpoint	I-Application
.	O
</s>
<s>
On	O
the	O
same	O
day	O
,	O
Ars	O
Technica	O
stated	O
that	O
"	O
Ubisoft's…	O
plans	O
make	O
no	O
sense	O
"	O
because	O
the	O
Quartz	O
system	O
is	O
so	O
deeply	O
controlled	O
by	O
Ubisoft	O
that	O
a	O
simple	O
conventional	O
internal	O
database	O
would	O
achieve	O
the	O
same	O
result	O
without	O
the	O
overhead	O
of	O
a	O
blockchain	B-Application
.	O
</s>
<s>
Users	O
criticized	O
the	O
technology	O
because	O
Ubisoft	O
terms	O
of	O
service	O
state	O
that	O
the	O
company	O
has	O
"	O
no	O
liability	O
"	O
for	O
claims	O
or	O
damages	O
and	O
is	O
aware	O
that	O
the	O
blockchain	B-Application
"	O
may	O
be	O
subject	O
to	O
specific	O
weaknesses	O
,	O
which	O
make	O
them	O
possibly	O
targets	O
for	O
specific	O
cybersecurity	O
threats	O
"	O
and	O
disclaim	O
"	O
liability	O
in	O
the	O
risks	O
implied	O
by	O
the	O
use	O
of	O
this	O
new	O
technology.	O
"	O
</s>
<s>
On	O
9	O
December	O
,	O
Ubisoft	O
de-listed	O
the	O
announcement	O
video	O
on	O
YouTube	B-General_Concept
,	O
following	O
viewer	O
backlash	O
and	O
dislike	O
bombing	O
.	O
</s>
<s>
French	O
trade	O
union	O
Solidaires	O
Informatique	O
criticized	O
Ubisoft	O
's	O
plan	O
for	O
Quartz	O
,	O
stating	O
that	O
blockchain	B-Application
technology	I-Application
is	O
"	O
harmful	O
,	O
worthless	O
,	O
and	O
without	O
future	O
"	O
,	O
and	O
that	O
it	O
is	O
"	O
a	O
useless	O
,	O
costly	O
,	O
ecologically	O
mortifying	O
tech	O
which	O
does	O
n't	O
bring	O
anything	O
to	O
videogames	O
"	O
.	O
</s>
<s>
Ubisoft	O
released	O
the	O
last	O
Digit	O
for	O
Ghost	B-Application
Recon	I-Application
Breakpoint	I-Application
on	O
17	O
March	O
2022	O
and	O
ended	O
support	O
for	O
the	O
game	O
shortly	O
thereafter	O
.	O
</s>
<s>
Peter	O
Molyneux	O
announced	O
in	O
December	O
2021	O
that	O
his	O
development	O
studio	O
22cans	O
planned	O
business	O
simulation	O
game	O
Legacy	O
would	O
include	O
the	O
use	O
of	O
a	O
cryptocurrency	O
called	O
"	O
LegacyCoin	O
"	O
,	O
based	O
on	O
the	O
Ethereum	B-Application
blockchain	B-Application
.	O
</s>
<s>
In	O
July	O
2022	O
,	O
Mojang	O
Studios	O
announced	O
that	O
NFTs	O
would	O
not	O
be	O
permitted	O
in	O
Minecraft	B-Application
,	O
saying	O
that	O
"	O
speculative	O
pricing	O
and	O
investment	O
mentality	O
around	O
NFTs	O
takes	O
the	O
focus	O
away	O
from	O
playing	O
the	O
game	O
and	O
encourages	O
profiteering	O
,	O
which	O
we	O
think	O
is	O
inconsistent	O
with	O
the	O
long-term	O
joy	O
and	O
success	O
of	O
our	O
players	O
"	O
.	O
</s>
<s>
Will	O
Wright	O
revealed	O
in	O
October	O
2022	O
that	O
his	O
upcoming	O
game	O
VoxVerse	O
will	O
be	O
a	O
blockchain	B-Application
enabled	O
game	O
.	O
</s>
<s>
The	O
game	O
's	O
blockchain	B-Application
features	O
were	O
inspired	O
by	O
Wright	O
having	O
seen	O
players	O
in	O
The	B-Application
Sims	I-Application
create	O
their	O
own	O
assets	O
and	O
distribute	O
them	O
to	O
others	O
;	O
within	O
VoxVerse	O
,	O
creator	O
players	O
will	O
be	O
able	O
to	O
make	O
areas	O
that	O
other	O
players	O
can	O
explore	O
and	O
interact	O
in	O
,	O
and	O
then	O
trade	O
and	O
sell	O
these	O
assets	O
as	O
NFTs	O
.	O
</s>
<s>
Square	O
Enix	O
committed	O
more	O
to	O
blockchain	B-Protocol
game	I-Protocol
support	O
,	O
intending	O
to	O
bring	O
the	O
technology	O
to	O
the	O
Final	B-Application
Fantasy	I-Application
series	O
and	O
also	O
announcing	O
new	O
IP	O
named	O
Symbiogenesis	O
built	O
around	O
NFT	O
.	O
</s>
<s>
In	O
a	O
November	O
2022	O
investors	O
report	O
,	O
the	O
company	O
said	O
that	O
they	O
consider	O
blockchain	B-Application
technology	I-Application
critical	O
to	O
their	O
growth	O
.	O
</s>
<s>
Xbox	B-Protocol
head	O
executive	O
Phil	O
Spencer	O
said	O
in	O
regards	O
to	O
blockchain	B-Protocol
games	I-Protocol
"	O
that	O
some	O
of	O
the	O
creative	O
that	O
I	O
see	O
today	O
feels	O
more	O
exploitative	O
than	O
about	O
entertainment	O
"	O
.	O
</s>
<s>
When	O
the	O
gaming	O
communication	O
platform	O
Discord	B-Application
suggested	O
possible	O
Ethereum	B-Application
integration	O
into	O
their	O
client	O
in	O
November	O
2021	O
,	O
users	O
criticized	O
the	O
inclusion	O
of	O
cryptocurrency	O
and	O
Discord	B-Application
backed	O
off	O
,	O
affirming	O
they	O
had	O
no	O
set	O
plans	O
for	O
its	O
inclusion	O
.	O
</s>
<s>
In	O
November	O
2021	O
Rob	O
Fahy	O
wrote	O
in	O
Gameindustry.biz	O
that	O
the	O
"	O
play-to-earn	B-Protocol
"	O
business	O
model	O
is	O
similar	O
to	O
earlier	O
systems	O
that	O
encouraged	O
the	O
rise	O
of	O
gold	B-Protocol
farming	I-Protocol
which	O
later	O
led	O
developers	O
to	O
shift	O
to	O
selling	O
"	O
gold	O
"	O
to	O
players	O
directly	O
in	O
real	O
currency	O
.	O
</s>
<s>
In	O
December	O
2021	O
,	O
during	O
The	O
Game	O
Awards	O
,	O
Josef	O
Fares	O
,	O
director	O
of	O
It	B-Application
Takes	I-Application
Two	I-Application
,	O
stated	O
that	O
he	O
would	O
rather	O
get	O
"	O
shot	O
in	O
the	O
knee	O
"	O
than	O
include	O
NFTs	O
in	O
any	O
of	O
his	O
games	O
.	O
</s>
<s>
Games	O
journalist	O
Jason	O
Schreier	O
characterised	O
the	O
blockchain	B-Application
"	O
play-to-earn	B-Protocol
"	O
model	O
as	O
a	O
pyramid	O
scheme	O
.	O
</s>
<s>
One	O
developer	O
,	O
StepN	O
,	O
admitted	O
that	O
play-to-earn	B-Protocol
games	O
require	O
a	O
constant	O
supply	O
of	O
new	O
players	O
or	O
else	O
their	O
token	O
economy	O
would	O
collapse	O
.	O
</s>
