It is believed that decentralised gaming experiences and the addition of blockchain have given rise to a new sub-genre called ‘Crypto-Games’ – which has thereby led to the rise of the industry. Crypto games are different from traditional games because these allow players to earn cryptocurrency or digital currency. These rewards can be traded, sold or used within the gaming ecosystem, creating opportunities for players to monetise their gaming experiences with real-world rewards. “Real-time rewards bring in a player reward experience that is purposeful and instant. This also eliminates the need to advertise outside of the game’s ecosystem once a user is a part of it. In that sense, it’s a win-win for both the players and the gaming company,” Vikram Subburaj, CEO, Giottus Crypto Platform, told FE Blockchain.
It is understood that incorporation of real-time awards can strengthen the structure of the gaming companies, increase valuation and help to raise capital. It is believed that the online gaming market will grow highest in Turkey, with average annual growth of 24.1% by 2026, followed by Pakistan, with an increased rate of 21.9%, and India with about 18.3%.
While naysayers feel that the online gaming industry might not contribute to the global revenue system. This is despite, “The game industry’s swimming in cash,” Joost van, professor, Dreunen of New York University noted. According to reports by Statista, a market research platform, the revenue earned by India’s online gaming industry crossed Rs 100 billion in 2021 and is expected to clock over Rs 153 billion by 2024. “With players getting to trade in-game assets and currencies directly with each other, this peer-to-peer exchange of value creates new revenue streams outside traditional game monetisation models,” Vikas Ahuja, CEO of Metaverk, explained.
It is believed that with the implementation of NFTs and cryptocurrencies backed by real-time awards, the in-game transactions will create 9.6% revenue growth on mobile platforms in 2023.
With insights from Appinventiv, a mobile app design and development platform, the gaming industry is quite competitive and can make it difficult for blockchain-based games to compete against traditional games. So, where does the future of this gaming industry really stand? “Game-based currencies have tradable value within the context of the game but adding the word crypto before it doesn’t magically make it more valuable, or less. Therefore, a currency within that environment that can either be bought or traded has always had value, but for that limited cohort of gamers,” Utkarsh Sinha, managing director, Bexley Advisors, a boutique investment bank firm, concluded.