In our ever-changing industrial landscape, the only constant is change. What was the norm today may not exist tomorrow and suddenly feel dated, while new industries may sprout in the most unlikely places. The gaming industry has been on a slow and steady rise since the ’90s and ’00s, but it has experienced a renaissance in recent years following the end of the various lockdowns. Because gaming has become a widespread pastime, embracing new players and increasing its accessibility, it’s no wonder millions of newcomers are trying it out and getting into the hobby. Innovation and new approaches are the driving factors, and crypto gaming is the latest trend, fusing gaming and crypto tech into a whole new genre!
1. Current state
Crypto and blockchain games began in 2017, and their humble beginnings were far from the giant strides made today. Still, the industry is relatively young, with only seven years of development, but it has already amassed over $1.5 billion just last year, with no intentions to slow down. Nearly 95% of all crypto games made today are in the Web3 gaming ecosystem. And popular crypto game genres come in all shapes and sizes. They include various story-driven RPGs and more casual games, fast-paced action, and more strategic games.
Mobile crypto games and even casino games are running on the latest crypto gaming wave by both accepting its tech and crypto payments, as cryptocurrency expert Michael Graw explains in his article about the best crypto casinos (source: https://www.techopedia.com/cryptocurrency/best-bitcoin-casinos). The massive success of Web3 games can be attributed to 29 gaming companies, where giants like Ubisoft, Konami, Epic Games, CCP Games, and others are producing quality crypto games for the ever-expanding market. As crypto games gain popularity, it’s only a matter of time before other big-name studios join the industry with their take on the genre.
2. Monetization
One of the leading factors for the success of the crypto gaming industry is the built-in monetization, which lies at the fundamental core of crypto gaming. In traditional games, all in-game items, starting from equipment, pets, spells, armor, characters, virtual plots of land, in-game currency, etc, are all bound to one player. Even if any gamer plays a multiplayer game, trading in-game items can be restricted and only possible with in-game items. However, crypto games change how traditional gaming trading systems work by allowing any asset of the game to be tradeable for crypto.
Pets become tradable NFTs, land, equipment, or characters that can be bought and sold for crypto, and the entire monetization mechanic changes from the in-game economy to our real-life one. This innovation in the traditional trading paradigm has led to the mass success of crypto games and their wide appeal, as the monetary incentive is what drives many gamers to play and invest their time and money into crypto games. Axie Infinity and Decentraland both serve as a good example of the crypto monetization model.
3. P2E model
Crypto games are mostly free, where premium features become unlocked when the player chooses to pay for them, but there are also play-to-earn models (P2E), where it’s possible to play crypto games, earn crypto while playing, and then spend that money in the game if the player wishes to. Such an incredible option has resonated with gamers worldwide, bringing millions to play P2E crypto games and driving their success. As the trend continues, and more crypto games become P2E, their popularity will only increase.
Because players can get cryptocurrencies while playing the game, as seen in Green Bitcoin and Sponge V2, for example, they get invested and eventually choose to spend their hard-earned money in the game, unlike other games where they need to be paid upfront or on a monthly subscription. Because traditional games do not offer a chance to earn cryptocurrencies while playing, crypto games have a competitive edge, which will be one of the leading factors driving their success in the future.
4. Predictions
In concrete numbers, experts believe that the crypto gaming industry could surpass $600 billion by 2023, meaning the projected industry growth is over 20% on a year-by-year basis. The rise of crypto gaming in the Asian region, coupled with new studios making games while more gamers embrace the benefits crypto gaming provides is only one-half of the prediction. Because crypto games are tied to cryptocurrencies and their value and trends, which are also expanding, these will be the driving factors behind the upcoming success and expansion of the crypto gaming industry.
From hand-held to consoles, PC, and now mobile, gaming has been on a continuous evolution trajectory. Graphic, genre, sound, mechanics, and platforms have all evolved in gaming, and crypto is the latest addition, unlocking the hidden potential within games. Early adopters, both companies and gamers, will be the ones who will benefit the most, and the future is looking bright for both.
