The gaming industry is over 50 years old at this point. From the beginning, the industry has been volatile. We all remember the famous gaming industry crash in the 1980s. However, the industry has always managed to recover and reach new heights.
And now, it seems like the industry is making an unexpected comeback- all thanks to NFT games.
The State of the Gaming Industry
In recent years, the gaming industry has been booming. Currently, the industry is worth more than $195 billion worldwide. That is more than the film and music industries combined.
There are many reasons for this sudden growth. The most important reason is that gaming has become more mainstream. With the rise of mobile gaming and live-streaming platforms like Twitch, more people are exposed to gaming than ever before.
But things aren’t perfect. Recent years saw the rise of in-game purchases and freemium games. While this business model has been successful for some developers, it has caused controversy. Gamers are becoming increasingly frustrated with having to pay for DLC and microtransactions.
To combat this, publishers are beginning to look at the NFT gaming business model.
NFT Games Surpassed Traditional Games
According to Urvit Goel, the vice president of global business development for Polygon, games that integrate NFTs have the edge over traditional games.
The traditional game model requires players to spend their money so they can enhance gameplay or even enjoy the game completely. Now, the concept is nothing new. Arcade games required players to feed the machine coins so they could keep playing continuously.
If a game integrates NFTs, it gives players the opportunity to buy and sell in-game assets. That means users can make money from playing the game.
This model has already been proven to be successful. Blockchain-based games such as CryptoKitties, Decentraland, and Axie Infinity have already generated millions of dollars in revenue.
Traditional Game Publishers Switching
Buying, selling, and trading game assets will give users more control over their in-game experience. It also gives them the potential to make money from playing the game.
Gaming publishers are starting to notice this. Nexon, the owner of the popular MapleStory game, recently announced that it would release a blockchain version of its flagship game this year.
What’s more, the aforementioned Polygon is also entering the NFT gaming market. The company has partnered with Neowiz to bring existing and develop new titles on the Blockchain. The executives at Polygon have a lot of confidence in the technology and will be able to use it effectively.
And Nexon and Polygon won’t be the last companies to do this. As the NFT gaming business model proves itself, we expect to see more traditional game publishers switch to using NFTs.
No one is forcing these publishers to enter the NFT gaming market. They’re doing it because they see the potential for success. The NFT gaming business model has already proven more profitable than the traditional model.
What’s more, it gives players more control over their in-game experience. Players can create their in-game economy by buying, selling, and trading game assets.