Ubisoft is stepping back into the NFT arena, announcing Might & Magic Fates, despite facing considerable community backlash and previous unsuccessful ventures. With this move, the company’s motivations are called into question, as well as what this means for the fan-favorite Might & Magic franchise. Why, especially considering how much gamers hate NFTs, does Ubisoft continue to double down on them? Let's dive into the potential reasons.

The Web3 Rationale

Ubisoft isn’t unaware of the backlash towards NFTs. Nicolas Pouard is Vice President of the Strategic Innovation Lab at Ubisoft. Despite this political will, he admitted that as of 2021, Web3 technology was simply not ready. Well, this time around, Ubisoft says they’re working more closely with gamers who are into Web3 to make sure they get it right. Yat Siu, the Co-founder and Executive Chairman of Animoca Brands shares this passion for Web3 gaming. He’s convinced it can revolutionize the way players interact with and possess their digital goods. At Ubisoft, we’re convinced Web3 can transform the industry as we know it. That sense of urgency is echoed among industry leaders, too.

The Promise of Web3

  • Ownership and Scarcity: NFTs can introduce a new level of ownership and scarcity to in-game items, potentially increasing their value and appeal to players. Imagine owning a unique sword in Might & Magic that's provably one-of-a-kind.
  • Web3 Integration: The use of NFTs and blockchain technology could pave the way for further Web3 integration, enabling features like decentralized marketplaces and player-driven economies.
  • Evolution of Gameplay: NFTs could influence gameplay mechanics, allowing players to use their unique digital assets in new and creative ways, or creating new gameplay modes and challenges.

Ubisoft, in particular, is betting heavily on the long-term viability of blockchain gaming. They don’t think it’s a passing fad, though. AI is shaping the future of Web3 gaming by revolutionizing game creation, gameplay, and player experiences. This revolution might be the force behind Ubisoft’s current seventh round of investment in the field.

Financial Incentives

We suspect financial motivations are the driving force behind Ubisoft’s dogged insistence on continuing to chase the NFT fad. Game7’s State of Web Gaming report indicates that this is a huge trend in blockchain gaming. Since 2018, over $15 billion in institutional investment has poured into this sector, signaling a growing appetite and admiration for Web3 gaming. And for Ubisoft, NFTs are just one of many new revenue streams they see on the horizon.

New Revenue Streams

  • NFT Sales: The introduction of NFTs could create new revenue streams for the franchise through the sale of unique digital assets, such as collectible cards, characters, or in-game items.
  • Royalties: Ubisoft could generate revenue through royalties on NFT sales, providing a new stream of income for the company. Every time an NFT changes hands, Ubisoft gets a cut.
  • Second-hand Market: By allowing players to buy, sell, and own unique digital assets, Ubisoft could tap into the second-hand market, creating a new revenue stream.

Furthermore, blockchain-based games can offer players the opportunity to earn money by selling their NFTs to other users, potentially increasing player engagement and monetization for Ubisoft. This produces a virtuous circle in which players have more fun with the game and Ubisoft enjoys higher engagement. Ubisoft partners with Immutable Ubisoft has partnered with Immutable to develop a new blockchain-based game. This partnership holds the potential to unlock access to new business models like tokenized economies and decentralized play-to-earn gaming.

The Risk and the Resistance

Even with all the positives on Ubisoft’s side, the hurdles they face are daunting. Their previous attempt to introduce NFTs in Ghost Recon: Breakpoint was met with criticism and poor sales. The gaming community in general considers NFTs to be the future of scams. Most gamers think these systems exist because developers want to rip people off.

Past Failures and Internal Doubts

Ubisoft employees have persisted in raising internal opposition to the company’s blockchain projects. These critiques speak to the absence of clear vision and comprehension of NFTs, resulting in botched execution. Ubisoft Quartz, announced in late 2021, was a complete flop. Despite this temporary setback, this attempt or perhaps previous signs indicate that Ubisoft’s foray into the world of NFTs has missed the target entirely. The decision to disband the team behind the critically acclaimed Prince of Persia: The Lost Crown to focus on other projects may indicate that Ubisoft is re-evaluating its priorities and may be more cautious with its resources.

Ubisoft needs to address this change in perception directly. If they want Might & Magic Fates to be a success, then they better deliver some real value to players. This means pursuing definitional things that seek practical gameplay improvements, true digital ownership, and an aversion to pay-to-win mechanics, for instance.

The Future of Might & Magic

The effects of NFTs being included in Might & Magic Fates may be serious enough to reboot the entire franchise. We’re looking forward to even bigger player engagement! This goal stems from introducing a new paradigm of player experience to the game and its ecosystem, such as trading and collecting one-of-a-kind digital goods. Through NFTs, players can achieve a new form of ownership over their in-game possessions. This increased rareness would raise their worth and attractiveness to players rising overall value.

It's a gamble. If Ubisoft fails to address the concerns of the gaming community, Might & Magic Fates could face the same fate as Ghost Recon: Breakpoint, further damaging the franchise's reputation. Only time will tell if Ubisoft can successfully navigate the complex landscape of Web3 gaming and convince players that NFTs can enhance, rather than detract from, the gaming experience.