There's nothing wrong with crypto on its own but crypto in video games is 100% a total scam. There are no realistic use cases for it other than tricking people out of their money.
It would be applicable for in game currency and in game assets. What comes to mind is a game like CS:Go. Tournament prizes paid in currency, in game items like weapon skins and knives as NFT. I'm not likely to use it as I don't play games, but it is easy to see the application for it. (Unless biases preclude that)
You technically could do that but there's no real advantage to it, having an external store for a game's data isn't useful; a database is a better fit in all use cases. A game's economy doesn't exist without the game's balance and the same goes for items within that game. Trying to make some pie-in-the-sky "+4 str +4 stam leather belt" NFT is just nonsense.
I didn't say it was essential, I was filling in the details that the parent post was not able to understand. I do not play games, and I do not believe either of the two necessitates the other, I just have a knack for understanding simple concepts.