Barclays Analysts Predicts Increasing Interest in VR Via Metaverse and NFTs in Games

In a blog post released by Barclays Eagle Labs titled "Predicting the games industry's biggest trends of 2022," several analysts highlight the burgeoning road map for NFTs in games, as well as the inevitable acquiescence of the metaverse. Both are relatively touchy subjects, whether when speaking on them in terms of the games industry or not.

NFTs, or non-fungible tokens, are an incredibly dangerous prospect in the hands of video game publishers, notably EA, Activision, Ubisoft, or Konami. The latter two have already entered the space with as expected little fanfare, and EA head Andrew Wilson relayed NFTs and blockchain games as "the future of our industry," which already doesn't bode well for the nonbelievers.

To make matters worse, both Karol Severin, Midia Research co-founder, and Lewis Ward, director of IDC gaming research, see NFTs and blockchain games as inevitable concepts within the industry. According to these analysts, 2022 will be the year for even more broadened "experimentation for blockchain technology and non-fungible tokens (NFTs) in games," yet is hampered only by the aforementioned backlash and shady ecosystem surrounding them.

Senior games analyst at Ampere Analysis, Louise Shorthouse, says: "I think we can expect to see a greater number of games - especially in the first half of 2022 - using [blockchain] technology to support things like in-game cryptocurrency and the play-to-earn model."

Not only are NFTs a rather tricky asset to fully adore, but they are also marred additionally by their immense environmental impact. Little to no regulation also makes the space ripe for fraudulent behavior, most significantly money laundering, but also myriad scams. With that in mind, NFTs in the hands of such entities as EA, which saw Star Wars: Battlefront II embroiled in a loot box fiasco, is only the tip of the iceberg for fans and gamers alike.

In a recent interview with VentureBeat's Dean Takahashi, newly appointed head of Polygon, Ryan Wyatt, explains the ongoing sentiment surrounding blockchain gaming and NFTs presiding within the space:

"I don't think blockchain gaming is going to eat the games industry...Some people are excited because they have a clear vision of what version [Web] three, four, or five looks like. They're communicating that enthusiasm. Others see it for what it is at face value right now, and they're understandably disinterested in engaging in the matter."

Along with NFTs in games, few beyond the tech industry seem anticipatory of the forthcoming metaverse. To some, it's a pipe dream. To others, it's a gateway to a secondary world of our own invention. Still, whether realistic or just a theory, the metaverse has gained incredible traction in terms of building blocks around it, as well as overall funding. In its research and analysis blog post published on Dec 1st, 2021, Blomberg denoted the metaverse as an $800 billion market.

Through the lens of the gaming industry, the virtual world of tomorrow may find its supporting birthplace. Epic Games' Tim Sweeny has, for several years, been pushing forth the concept through his Unreal Engine and Fortnite. While still very much in its infancy, the metaverse must first tackle the obstacle of widespread adoption for both virtual and augmented reality headsets.

Interactive VR entertainment is its answer, which Ward says may see growth in 2022, "Although those titles only generated about $950 million worldwide last year - a relative drop in the almost $260 billion PC, console and mobile gaming industry - I think there will be a special focus on VR games."

Whether real or not, the metaverse has to start somewhere. Some of the biggest names throughout all industries are pursuing some metaverse integration, from YouTube to Disney. Some may not see it as a possibility yet, but given time, the metaverse will surely invite unlimited potential. It starts with metaverse lands like Everdome and The Sandbox, as well as greater avenues for VR games on par with the fidelity and immersion of Valve's Half-Life: Alyx.

Niko Partners adds:

"Metaverse became a hot word in 2021 with numerous tech and gaming companies embracing the concept. We expect game focused companies to see the initial benefits of the metaverse trend while tech first companies will struggle to offer value to users. However, we don't expect to see a true metaverse experience in 2022 based on the currently accepted definitions."

It's clear, while the pushback might be there, the gaming industry will no sooner have to embrace crypto as more independent developers and triple a publishers seek its allure. Those hoping, however, to enjoy an experience unlike any other within the metaverse may have to wait for improved capabilities as well as wider public support.

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Written by Ryan Epps