Blockchain and NFTs continue to be a revolutionary technological development that has an impact on numerous industries, including the video game industry. By enabling players to exchange tokens for in-game digital objects, NFTs offer a method to increase player engagement. It will have a significant impact on the gaming industry as a whole. The potential for players to truly own game assets is opening up completely new business models and revenue opportunities for game producers.
Players looking for more value and cutting-edge new experiences have a variety of options available to them when they possess in-game digital assets. The game designers who seize the chance to provide players more choice, broaden the manner in which they can acquire new assets, and promote the potential value that NFTs might produce will succeed in this new environment.
The already thriving video game market is anticipated to expand much further
According to a recent survey, more than 3 billion people will regularly play video games by the middle of 2021. According to a different analysis, the worldwide video game market brought in more than $180 billion in sales in 2016. The latter figure indicates a 20% increase since the COVID-19 epidemic. According to a broad perspective, individuals find the virtual worlds of computer games to be more alluring than the real world.
Notably, the continuous dominance of in-app purchases in the mobile gaming industry is the primary reason for this income increase. It's hardly unexpected that many video game companies believe a similar economic model may be used to games set in a metaverse after examining the mobile gaming market. Additionally, the expansion of online stores and digital distribution networks for mobile apps presents an opportunity for smaller development firms to "play the game." Hiring a Web3 Game Development Company will relieve you of the majority of labor-intensive tasks, provide you access to software that is outside of your budget, and educate you on the finest tools and solutions for the scope of your project.
There is tremendous room for expansion in the gaming industry on a global scale. The market is dominated by the Asia-Pacific region, which accounts for 55% of all video gamers. 25% of global gaming sales are made in China. Significant growth rates of between 4% and 10% are also being seen in other worldwide regions. Surprisingly, only North America exhibits sluggish growth, at 0.7%.
Video game business concepts are continually developing
The video game industry has made money over the years in a number of different ways. The Pay-to-Play (P2P) sector offered an idea that was rather simple. To play the video game, all you had to do was purchase a copy for your preferred gaming system. Due to the circumstances, the market finally recovered under Nintendo, Sega, and Sony as well as throughout the ups and downs of Atari, Mattel, and Coleco.
Due to the spectacular expansion of smartphones in the late 1980s, free-to-play (F2P) gaming really took off. As was already mentioned, the majority of the money made from these freemium video games comes from in-app purchases and in-game advertising. Once more, blockchain and NFT fans who create games find the idea of paying extra to unlock new characters or features appealing.
The Play-to-Earn (P2E) model, a relatively new business strategy for video games, completely utilises in-game blockchain, NFTs, and cryptocurrencies. While playing the game, players have the chance to earn tokens or in-game money. As they advance in the game, they frequently gain more. Afterward, players can use these in-game currency to buy NFTs, such as brand-new characters or equipment.
The in-game economy, which is nothing new, is the foundation of the F2P business model. Gamers can resell these products on secondary markets by employing NFTs. For the first time ever, players can now move stuff they've obtained through gaming outside of the game. Increased gameplay consequently results in higher revenue both in the metaverse and the real world. This method of fusing pleasure and gain offers new advantages to both game developers and the gamers themselves.
Impact of Blockchain on Current Gaming Business Models
Game creators may provide players with a wide range of novel chances to maximise their digital assets and add value with the help of NFTs. Gamers can once more choose to resell these items on secondary markets. This strategy gives players a genuine sense of ownership and makes it simpler for them to use real money—albeit cryptocurrency—in the game. Additionally, it adds realism to these imaginative virtual environments, which is crucial for increasing player interest.
Modern video games incorporate the P2E paradigm as well as more conventional ideas of playing and collecting. For instance, some games allow players to purchase and trade virtual baseball card-inspired items. The combat and training paradigm in the original Pokémon is similar to that in other games. By utilising older established business models, gamers can become more at ease with more contemporary models and esoteric ideas like blockchain and NFTs.
The usage of NFTs as staking assets is another cutting-edge blockchain gaming application. In order to generate passive income in the form of tokens, rewards, or in-game advantages, NFT holders can monetize their digital assets. Players now have more financial possibilities beyond the straightforward buying and selling of in-game goods thanks to this.
Blockchain-Based Gaming's Future
There is a considerable likelihood of failure, as with any discovery in transformational technology, as well as enormous potential for growth. In a nutshell, the present business climate is eerily reminiscent of the video game industry in the late 1970s. Blockchain and NFTs provide enormous revenue potential for game producers, but only if they enable users to engage in real-world interest-based gaming.
The idea of ownership is one differentiator that blockchain offers. Any in-game items that players earn in free-to-play games now just vanish if a video game publisher decides to change the rules or goes out of business. These assets are actually owned by the player in a P2E game made feasible by blockchain, which increases their value and transferability. In fact, players can choose to exchange these commodities for money. If Blockchain Consulting Firms want to be more approachable and future-proof, they must educate themselves on this cutting-edge technology. Beginners in blockchain should start here.
In the end, the gaming business is entering a new Wild West. If they wish to flourish in this new industry, game development companies still need to offer gamers an engaging atmosphere. The late 2000s or perhaps the 1970s might have been better periods than this one.
Get in touch with the Gigster team if your business has a fantastic idea for a game that utilises NFTs but lacks the technical know-how. We are proud of our cutting-edge technical expertise and tried-and-true game development processes. Work with us to make sure your game idea is seen by as many people as possible and makes a significant impact on the industry.