Tracking devices don’t need games. Games need tracking devices.

Every single personal tracking company tries to gamify their device. Nike, JawBone, FitBit and Basis all create point systems and badges, and even send reminders when you might miss a goal. These interactions are a nice layer on top of the device, but they aren’t ultimately very compelling. I think the industry has it backwards. Instead of layering a game on top of the tracking device, they need to layer the tracking device on top of games. Whichever company does this first – or best – will run away with the market.

Imagine the possibilities! Instead of running around in Grand Theft Auto for hours to earn a longer sprint time, you could just log 10,000 steps on your way to work and earn the upgrade that way. You could earn money in Zelda by slashing digital grass for hours, but that’s boring. Instead, you could actually mow the lawn and trade in those movement points for sweet sweet rupees. Talk about a way to get kids to do their chores! The sports game franchises are even more of a no-brainer because they’re already simulating real life action. Playing a game of touch football could earn throwback jerseys in Madden or boost custom player stats. You could become the number one draft pick in the game by working out in the real world.

Nike and Sports Games

This sports example is probably the most likely connection to happen first. Nike already has their FuelBand, an API for the Nike+ product, and they already have ties with every major sporting franchise. They still need connections with game studios and the console makers, but this shouldn’t be tough for a company with Nike’s clout.

Casual Gaming Integration

FitBit would be my next bet. Their marketing has skewed towards the casual end of the spectrum so far, so I expect their users see themselves as “casual athletes” as opposed to Nike fans who are a little more intense. But this is actually a great position for FitBit because it opens up the biz dev doors to casual games like Angry Birds and Candy Crush. Whereas Nike’s integration with console games might take considerable time due to product development cycles, mobile games could happen… next week!

Most tracking devices already sync with smartphones via Bluetooth. All of the necessary hardware for mobile integration is already in place. The only remaining connections is for a company like Jawbone to sync up with the Temple Run crew and make a few exclusive in-game items that can only be unlocked by racking up points on the Up.

Revolutionary Gameplay

The potential to turn real-world movement into in-game currency will be revolutionary. In the same way the Kinect and and Wii remote changed the face of game interaction, self-trackers integrated into games will further redefine what it means to interact with a game. The player will in many ways become part of the game. Their life becomes an extension of the game when they can alter their progress through real world decisions. Players become the game character.

Game Companies Understand Motivation

In-game rewards are often more compelling than real life rewards. This is the crux of why people often prefer videogame proxies over the real world equivalent. It is common for a World of Warcraft player to obsessively analyze the economy on their server and attempt to create a profitable trading business. They could have spent those countless hours on a real business but the game version was more compelling. Sure, there’s no financial risk in a videogame, but this doesn’t diminish the motivational nature of games. A large team of highly trained professionals have spent thousands of hours creating and fine-tuning an environment that will motivate players. Games are built with actionable goals, a clear and visible path of progress, mentally tangible rewards, and a third party arbiter to award these awards. Basically everything that a life coach or personal trainer would implement.

The prospect of dropping 5 pounds in the real world can be daunting. Even the effort of choosing how to start can derail the entire affair. “What if spin class is better than jogging? Screw it, I’ll start tomorrow.” Couple this toxic ambiguity with progress that’s hard to see and a reward structure that requires you to reward yourself, and you’ve created a recipe for demotivation. On the other hand, a videogame can tell you to walk 100 steps, track your progress, and then reward you with compelling prizes all along the way. It’s hard to see a half pound difference on the scale, but it’s easy to see you made it to level 10. Personal tracking devices try to make this system work, but they lack the game mechanics and compelling rewards that encourage action. Gaming companies can provide this missing piece. Fitness doesn’t have to be the only byproduct, but it’s the most obvious one. Both industries will be better for this integration.

Companies like FitBit, Nike, Jawbone, and Basis better step of their game soon, however. It’s only a matter of time before game companies realize the potential of this kind of integration. If Nintendo can invent the Wii remote, Microsoft can invent the Kinect, and Sony can copy both of them, then they should all be able to create their own wearable device over a week-long hackathon.

The clock is ticking.

*All images are property of respective companies: Nike, Rockstar Games, EA Sports, Gamestop, FitBit, Blizzard Interactive, Basis Science.