Yesterday, Nike dropped a major update: its Web3 platform, .SWOOSH, is taking a new direction after launching two years ago.

Nike’s .SWOOSH is shifting from NFTs to focus on gaming, partnering with major platforms to offer exclusive in-game wearables and Nike products.

Kicking off with a TEKKEN 8 tournament, .SWOOSH is set to become the go-to place for Nike gaming experiences and events.

Let’s break it down: 👇

So far, 389,568 SWOOSH IDs have been minted on Polygon since November 2022.

But here’s the twist: Earlier this year, Nike laid off 1,600 employees (2% of its workforce), including parts of the team behind Nike Virtual Studios, which oversaw .SWOOSH.

Why the shift?

Nike’s NFT venture didn’t hit the mark.

Despite bringing in $3M, it pales in comparison to Nike's $50B in 2023 revenue. Plus, engagement was lacking.

The bigger picture: Nike's pivot is part of a larger trend where brands are rethinking their digital strategies for better returns and customer engagement.

Instead of NFTs, Nike is doubling down on gaming partnerships to create in-game experiences and exclusive wearables.

Key takeaway: Gaming is the next big thing.

70% of Fortnite players buy outfits for their avatars

56% of Gen Z Roblox users care more about their avatars' style than their own

Are NFTs dead for brands?

Probably, at least for now.

Remember when every brand was hopping on the NFT bandwagon? Those days seem to be on pause for now.