Blockchain: The new tech of gaming industry

Global gaming industry generated revenues of $108.4 bn in 2017 with Mobile games being the biggest category generating $59.2 bn, followed by PC and Consoles. Both PC and mobile sectors are majorly driven by the free-to-play titles, where ~ $82 bn were spend by 2.5 bn players globally. Asia remains the biggest market for mobile games with $ 36bn of revenue in 2017 and expected to make around $ 38.6 bn by end of 2018. The mobile gaming market in Asia has shown an increase of $ 10 bn over 2016. However, the mature markets such as North America and Europe are lagging behind to one-fourth or less in size. Japan, Taiwan and South Korea generated the highest revenue with the total growth of non-organic activities from these three countries reached ~ 10% in 2017.

The gaming industry has been throttled and face-lifted by the blockchain technology, where the gaming community understands the cryptocurrency so much. Virtual money, used since a long time, has played an important role to help companies generate revenue.

World of Warcraft became one of the highest grossing video games of all time and is still played since its release in 2004. The underground WoW gold market became so lucrative that the Chinese prisoners were forced to mine it. This gold was then sold in black markets that violated game’s terms and conditions. By 2015, WoW Token was introduced, which let players exchange virtual gold for real currency. Though, these token were not like cryptocurrencies technically but were spent the same way.

The blockchain tech can revolutionize the gaming industry and answer many challenges like above for the gaming community. Blockchain provides virtual currencies such as Bitcoin or GAME (gamecredits) where transactions are recorded, fraud-proof and maintains privacy and authenticity among who conducts it. Blockchain’s association with the real world fintech mechanisms such as Paypal, cash withdrawal from ATMs, credit cards, peer-to-peer transfer and bank transfers widens its spectrum of usefulness. The cryptocurrencies can be used as virtual currency as well as exchanged for the real currency. Emergence of Game-commerce and its integration with real-commerce would create more opportunities for the gaming community.

Gamers love collectibles in the game world being able to rank up and unlock achievements & enhancing their characters. There is high demand for rare collectibles, however there is no platform to support comprehensive and secure marketplace for buying selling and trading digital items. Cryptocurrency has the potential to provide a secure marketplace and the ability to develop the platform, where customers can not only trade but also customised their own rare collectibles. CrytoKitties is a blockchain based virtual game which allows players to purchase, collect, breed and sell various types of virtual cats. The collectibles available on this platform can be priced as high as $75,000.

 

Crypto Games

 

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