On 8th November, GTA developer Rockstar Games announced that they will launch the next version of the massively successful gaming console by December 2023.
Players have been eagerly waiting for this development, but there is a side concern as to how well people will get involved. This is the rumor that the game will have a GameFi element.
Since the last GTA, there has been an embrace of GameFi elements (basically in-game cryptocurrency) in neighboring gaming marketplaces, while some have been strongly laying off the idea. In November 2021, Steam quietly banned crypto and NFT features in the app and anything built on blockchain technology. Though this move has been described as skeptical, the clear ‘banning’ of web3 did not seem well with some enthusiasts and investors.
Alternatively, Epic Games doubled down their effort in incorporating web3. However, there are concerns about non-profitability, which makes players doubt pivot-to-crypto in its store.
Now, business interest in crypto has also spread to the GTA franchise, with rumors that GTA VI will include some crypto elements. This is a result of the recent announcement by Ubisoft (Assasin’s Creed maker) that they are considering “a new gaming experience that will further unlock web3 potential” along with Immutable.
Meanwhile, apart from players’ interests in crypto and GameFi, serious legal questions arise from this. Rockstar is a multi-billion dollar game developer with a massive presence in the U.S., and it would be a high-profile target for the Securities and Exchange Commission (SEC) this would be it.
John Montague (Florida-based digital assets attorney) told CoinDesk;
“My preliminary view aligns with the notion that there’s a legal grey area, substantial enough for a powerhouse like Rockstar Games to hesitate before integrating any sort of virtual currency within their games or issuing one of their own,”
He continued;
“Their hesitation, I believe, likely stems from a fear of possible issuer liability, especially given the aggressive stance the SEC has taken in recent times—underscored by the ongoing situation with Coinbase. I understand their desire to be conservative, and the risk/reward for their shareholders may just not be there.”
But there might be some green light. According to Montague, SEC already discussed a similar GameFi issue. They had once identified, while dealing with the crypto gaming project Pocket Full of Quarters, that the fixed-priced in-game tokens are not securities because they are used for game utility rather than investment; Montague explained a view that is a key factor in current regulatory considerations. He continued to argue that there’s no official investment, and so Rockstar and GameFi would not be talked about.
Nevertheless, many regulatory issues are still preventing developers from entering GameFi. This will need to be properly addressed on both sides to pose a potential win-win situation for both parties.
