The gaming industry is witnessing an exponential upgradation and proliferation of video content, products, special events, and video game tournaments, and this rise is bound to continue with the exponential growth in technology. This global sector spawns snazzy gear such as Birdly, a fully immersive VR flight simulator, VRgo – a special motion controller seat for virtual reality, and “the Void”, which according to its creators is a two-reality special attraction that allows one to play using a helmet and controller but also allows you to live inside the game taking virtual reality to a whole other level. Needless to say, these products do not come cheap.
The video game industry is speculated to cross $138 billion by the end of 2018, representing a 13.3 % increase from last year, or an extra $16.2 billion. Just as it is minting money for the gaming and tech companies, the monetizing aspect of it is also drawing in more players who have seen a scope to profit off this field as well. One of the most promising ways to enable that is the implementation of blockchain to competitive games – be it multiplayer or single player, to reward each achievement or promotion to a new level with cryptocurrency which could be native to the game itself. These coins can be later used to make microtransactions in the game itself, trade in exchanges, or simply sell in when it reaches maturity and value in the market.
The decentralized, open source, immutable ledger allows immediate update of game stats that can be tracked in real time, facilitating greater coordination among players and game regulators. This is intrinsic to optimal performance of online games, and it makes blockchain of special value to games such as Battlefield and Call of Duty – both big gaming companies that are publicly traded – which plan to launch battle royale modes in 2018 itself. The success of PUGB and Fortnite will not take away the pie from the new entrants that will follow this format because player engagement from teenagers, college campuses, and women, are on the rise. The only criteria for these battle royal versions to a success are that the game should be interesting, engaging, and be able to offer a new experience to players every time they visit the game, as no one wants to compete in repetitive challenges. This is also driving the demand for constant technological upgrades in this sector.
The industry which was previously a hit-driven business propelled by new releases is now viewed by investors as one that provides a more predictable and valuable earnings stream, due to the various models of recurring revenue that has surfaced and proven its success. Take for example the developer of the Fortnite Battle Royale game of 2017, the privately held Epic Games, which announced $1 billion in earnings from in-game revenue.
This has lead gaming companies to collaborate with software development companies, one of them being HashCash Consultants which is currently engaged with three such enterprises to inculcate blockchain into their technological backbone. By the new standards, purchase of a game is the preliminary stage of the product’s monetization, and as the video game engagement expands, it will reflect in bigger returns for investors in this space.