The gaming industry is already far more profitable than movies or music, and it may see an even greater boost as a result of crypto and non-fungible tokens.
In terms of revenue, the gaming industry is expected to be worth nearly $200 billion in 2021. Blockchain and NFT technologies are a natural fit for gaming, and they may be on the verge of taking off.
Currently, it is only a niche market for NFT-based gaming in which the tokens are integrated directly into the games. However, things are beginning to change on that front, with large sums of money being raised for NFT platforms.
The Quality of Crypto Games is Increasing
The NFT marketplace OpenSea raised $100 million, valuing it at $1.5 billion, and this could be just the beginning.
DeFiPrime has compiled a list of the most well-known names in crypto and NFT-based games, including Axie Infinity, Gods Unchained, Zed Run, and Battle Racer. It concludes that if NFT games continue to garner enough attention and popularity, they have the potential to become the industry standard.
“From there, it could be a very significant change in the way people play games, as significant as Doom was to the market or 3D was for environments.”
Shreyansh Singh, the head of gaming and NFTs at Ethereum layer 2 aggregator Polygon, believes the industry is on the verge of exploding as well.
Polygon announced the launch of Polygon Studios in mid-July. The new company will work to advance crypto gaming and NFTs, allowing the platform to “bridge the gap between Web 2 and Web 3 gaming.”
According to Singh, everyone is interested in this space, including celebrities, brands, and sports leagues. Many of the early blockchain-based games, however, were not created by game developers. That is changing, according to Singh, who claims that gamers are developing new games such as Axie Infinity and Zed Run.
On the Verge of a Major Adoption
Mythical Games, a Los Angeles-based NFT game developer, announced a $75 million Series B financing round in mid-June. It intends to use the fund to popularize game ownership through playable NFTs. According to Singh:
“So maybe we’re on the verge of widespread adoption, and maybe in a few years you’ll see a massive influx of top-tier games into this space.”
He envisions a major studio, such as Electronic Arts or Activision, releasing a game with play-to-earn and NFT components in a few years, adding, “after that, there’ll be no going back.”