CRYPTOCURRENCY
NFTs COULD BE THE GAMING INDUSTRY ’ S
NEXT BIG REVENUE STREAM ?
NFTs have become incredibly popular as digital collectibles , but could they offer the global gaming industry a lucrative new money-spinner ?
WRITTEN BY : ALEX CLERE
In the last couple of years , non-fungible tokens ( NFTs ) have opened up a whole new industry centred around the sale and purchase of digital assets – often digital artworks . But is one of the core applications for NFTs being overlooked ?
S & P Global Market Intelligence says that video game publishers currently make more than US $ 3.6bn a year in revenue from in-game NFTs , and they expect this figure to skyrocket to $ 15bn by 2027 as their popularity rises .
How are NFTs being used in gaming ? Tom Whittaker , who is a Senior Associate in the technology team at independent UK law firm Burges Salmon , explains : “ NFTs will play a central part in gaming and the metaverse because they can enable consumers to monetise their digital assets ( for example renting and re-sale ), allow brands to monetise secondary-sales ( which they traditionally haven ’ t been able to do effectively ), and allow a new relationship between brand and consumer . All of this depends on the terms of the smart contract .”
James Rodd is Head of Marketing at Gamesta , which develops games where lending , trading and buying gaming NFTs from blockchains is baked into the gaming environment . He tells FinTech Magazine : “ NFTs , or non-fungible tokens , are being used in the gaming industry in various ways . One of the most common use cases is for in-game items and assets – such as skins , weapons , and characters . By using NFTs , game developers can create unique and rare items that players can collect , trade and sell on blockchain marketplaces .
“ Another way NFTs are being used in gaming is to provide proof of ownership and authenticity for virtual items . With traditional gaming , players do not own the items they purchase ; instead , they are licensed to use them within the game . However , with NFTs , players can own their items and even transfer them between games or platforms , giving them more control over their gaming experience .” fintechmagazine . com 93