In recent years, various forms of in-game purchases and microtransactions have become the standard for many games. Free games that generate revenue from these revenue sources are also becoming more and more popular, but many players are still skeptical. Now, thanks to the development of blockchain and new software development kits (SDKs), developers can bring NFT-based items and transactions into their games for the first time—even existing games. This will bring a new era of games that is beneficial to developers and players alike.
Traditional video game revenue model
A long time ago, video game companies gained revenue by selling games as products. The total return of a particular game depends entirely on the number of physical units sold. Larger licensed games may bring in additional merchandise or similar revenue streams, but for most people, once the game is released, their fate depends on sales.
Then a new model including downloadable (DLC) and microtransactions emerged. This is often referred to as the Web 2.0 model, and its source of continuous revenue may be new characters and activities, or it may be in-game currency or accessories. Players react differently to this model, but many games have found a balance between the added value of in-game purchases and actual costs.
This new revenue stream has also promoted the development of free games. In this case, developers can create an essentially free game that allows everyone to use its basic functions, but provides a variety of ways for players to choose to expand the game and make money from it. It turns out that this is very attractive to many players. They can access the game for free without any risk, and if the game is suitable for them, they can choose any additional content to enhance the experience.
However, there is a small problem here. Although this type of game is very popular, only 2.2% of F2P players will spend money on these platforms. Nonetheless, in 2018 alone, the free-to-play field created $88 billion in global revenue, and this number may rise. But this also raises a question: if more players start to participate, what else is possible?
The game is entering Web 3.0
Fortunately, a newer profit model is emerging. In recent years, the rise of the so-called Web 3.0 has begun to change the pattern of the Internet, and now it has also changed the game. Web 3.0 introduced blockchain, cryptocurrency and NFT.
The blockchain acts as an immutable ledger, recording all transactions on the network in an encrypted manner, and in the process, allows the generation of NFTs. In the most basic form, the data represented by the NFT can be verified as unique from all other data and can be bound to almost anything-including items in the game.
In the same way, every costume, character, plot of the virtual land, or anything else in the game can be created as an NFT, which means they will be unique, tangible, and retain their value. They can span multiple games and even be resold to other players on the secondary market. This makes all these transactions less like throwing money into a black hole, but more like investing.
Players do not need to invest a lot of money in game items, because once the player loses interest or the game fails, these items will disappear. Game developers can still offer a similar set of potential in-game purchases-perhaps even more diverse-but they can offer these services at a lower price, and they may not even consider this price in the current model , And then get additional income by running the game market and P2P transactions, and collect a small fee from each transaction.
Allowing lower upfront costs can encourage a larger percentage of players to participate in the purchase of in-game assets. Therefore, by providing a trading market, players can rest assured that they have not really “lost” the value, but just convert it to the game world, and if they want, they can regain it at any time—may even be profitable at the top. Activities in these markets will provide developers with a steady stream of income as long as they remain active. In addition, with the development of the game, developers can continue to add new assets to the game, thereby increasing the profitability and transaction possibilities between players.
This is a win-win situation for both the player and the company behind the game. This model is based on Web 2.0 games and expands on this basis to provide players with more control and provide game companies with more profitable options. Even better, we don’t need to wait for the new generation of Web 3.0 games to accept this (although they are about to come out). Even now, 2.0 games can execute these systems on the current platform.
New technology brings the power of Web 3.0 into Web 2.0 games
The new blockchain extension technology has arrived, which makes transactions cheaper and faster than ever before, fulfilling the true promise of decentralized technology.
This means that soon, games that everyone is familiar with can be upgraded to include this new in-game purchase and sales model. In turn, this may bring new life to the already beloved virtual world. The recent discussions surrounding the rise of Metaverse—the idea of a “metaplatform,” or an Internet extension that can connect all these unique products—prove that this technology will be the key to realizing this grand vision.
There is no problem with the current game, but the new technology has brought today’s game environment to a whole new level. In addition, if consumers have become accustomed to the new NFT model, then blockchain native games will be more popular because they have already used this model in their favorite games. The bottom line is that although evolution is coming, there is no reason not to integrate it into existing products, and developers who do not jump into this trend now may find themselves struggling to catch up soon.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/viewpoint-web3-0-will-bring-a-new-trend-to-the-game-world/
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