It was a nice read! Well-written article. However, the main reason for the success of CryptoKitties was the monetary value associated with the in-game assets. It was similar to buying a new altcoin which gained huge pump recently. Remove blockchain assets from the game and you get an average Android-like game played by 8 years old kids. This sums up pretty everything. Blockchain can only be used in gaming industry in two ways - either for creating or storing in-game assets on blockchain using Smart Contracts or for in-game P2P trades between players.

I really can't see what Blockchain could add in multiplayer games that major video game developers like Blizzard, Valve and Ubisoft produce. Blockchain is all about storing immutable data in decentralized databases while multiplayer gaming is all about fast transmission of data between different peers. Blockchain is slow database while multiplayer gaming is all about speed.

Although, I really believe blockchain still has very big role to play in gambling industry. We are going to see new blockchain based superior gambling dApps in coming years which will disrupt crypto gambling completely.