Microsoft (MSFT  ) subsidiary and famed Minecraft developer Mojang announced in a recent blog post that it would be prohibiting the integration of NFTs into its monolithic sandbox title.

"Some companies have recently launched NFT implementations that are associated with Minecraft world files and skin packs," Mojang wrote in the post. "Each of these uses of NFTs and other blockchain technologies creates digital ownership based on scarcity and exclusion, which does not align with Minecraft values of creative inclusion and playing together."

At center of the fallout from the decision is NFT Worlds, a blockchain project that had been minting NFTs tied to Minecraft seeds, the numerical codes tied to playable worlds generated within the game. Seeds are typically intended to be shared with other players, who can input the code in Minecraft's main menu to generate the same maps.

However, Mojang's decision has effectively ended the project in its current iteration, with the value of NFT Worlds' assets cratering over the weekend. While the developers have said they could potentially migrate their concept into a "Minecraft clone" (a genre unto itself in gaming), the project still must face recovery amid a wider NFT market rout.

Enter Epic Games

In response to the announcement, Epic Games founder Tim Sweeny tweeted that "developers should be free to decide how to build their games, and you are free to decide whether to play them." Sweeny further elaborated that stores and OS makers should not "force their views" onto others.

While in response to Mojang's announcement, the comment may also be seen as a swipe at Valve, Epic Games' more prominent rival and the developer of the eponymous Steam digital distribution platform. Valve, which has a tendency of being aloof in its decision-making, quietly updated its policies for incoming game developers last year. The new rule on Valve's "what you shouldn't publish on Steam" list was an explicit ban of blockchain technologies that could be used to trade crypto assets of any kind.

In addition to developing the widely used Unreal Engine and many prominent titles such as Fortnite, Epic runs its own digital distribution platform, and has tried to position itself as the "anti-Steam." Many have pointed to policies at Epic that seem to deliberately run counter to Steam, such as the company's stance on the blockchain. While swearing off NFT integration into Epic's own games, Sweeny said in response to news of Valve's ban that Epic would not prohibit developers from doing so on their storefront.

Is There Actually a Demand for NFTs in Gaming?

While there are plenty of gamers that want more widespread adoption of NFTs into game development, most gamers, many developers, and even some publishers, have taken a firm stance against NFTs.

Ukrainian developer GSC Game World backed down from implementation of NFTs into the much-anticipated STALKER 2: Heart of Chernobyl after stiff backlash from fans of the franchise. Indie developer Mark Venturelli, known for the games Chroma Squad and Relic Hunters Legend, sent ripples through the gaming world recently after unexpectedly railing against NFTs at a Web3 sponsored event. Microsoft's head of gaming, Phil Spencer, noted in an interview that he felt NFT integration in gaming "feels more exploitive than about entertainment."

NFT games also have yet to be practically demonstrated; take the case of Axie Infinity. While successful at first, the game was one of many NFT projects struck by the one-two punch of a massive theft and the subsequent crypto winter, possessing extreme vulnerabilities not present in other games that offer a means to make money.

While NFTs appear to be rejected by most, the blockchain itself still appears to have many developers' attention, with many waiting to see what other technology develops from it. Mojang in its announcement noted that it would be watching the development of the blockchain to "determine whether it will allow for more secure experiences or other practical and inclusive applications in gaming."