Ubisoft becomes the first major video game developer to launch in-game NFTs

• Ubisoft said it is releasing the first playable, energy-efficient NFTs in a video game.
• PC players will have access to the NFTs, called Digits, this week when Ubisoft begins beta testing with Ghost Recon: Breakpoint.

Ubisoft is breaking ground in the video game industry with the first-ever playable NFTs that users can collect and apply as in-game cosmetics.

The gaming giant announced the new feature Tuesday, and said the NFTs, which Ubisoft calls Digits, will be the first non-fungible tokens "playable in an AAA game." On December 9, Ubisoft will beta launch its Digits for the PC version of "Tom Clancy's Ghost Recon: Breakpoint."

To manage and distribute its playable NFTs, the company will launch Ubisoft Quartz. Players can acquire Digits on Ubisoft Quarts and then use them in video games in various ways. Digits can be video game helmets, pants, guns — all with unique serial numbers.

Digits, according to the publisher, will be released in limited editions and each will be tied to the player names of all its previous and current owners. Owners will be able to sell these cosmetic gaming items on third-party marketplaces for cryptocurrency.

As part of the announcement, Ubisoft also said it wants the NFTs exclusively for Ubisoft players. To qualify, users must have reached a certain level in the "Ghost Recon" video game. To acquire the NFT pants, for example, players must have played at least 100 hours.

"The idea is to focus on our most engaged players with this first batch," said Ubisoft's Blockchain Business and Product Director, Baptiste Chardon.

Rather than a Proof-of-Work protocol, which bitcoin uses, Ubisoft's Digits are stored on the Proof-of-Stake blockchain Tezos. This is a more environmentally-friendly alternative for NFTs, according to the company.

Ubisoft reported $2.5 billion in revenues in its most recent fiscal year.