Massive growth in crypto-gaming – The GameFi could significantly surpass traditional AAA games, provided that companies in the industry can tackle the major challenges they face today.
Will GameFi be ahead of AAA games soon?
According to data published in DappRadar’s BGA Games report in October, blockchain games and metaverse projects have increased 1.3 billion dollars during the last quarter.
This figure is inside 48% drop compared to the second quarter of this year. However, it nearly represents the double the amount fundraising completed last year in its entirety.
Despite the winter of cryptocurrencies, blockchain games and metaverse projects continue to grow compared to 2021. Recently, the CEO of Skale, Jack O’Holleranindicates that “today’s AAA gaming companies” I could “They look like peanuts” in the face of the continuous evolution of GameFi.
For clarification, Skale is a Ethereum (ETH) which powers web games3, while AAA games refer to those produced by large publishers and benefiting from a relatively high budget and media coverage.
In addition to the CEO of Skale, Absolute relationships he also spoke of an optimistic outlook for games play to earn (P2E). He advanced the figure of $ 2.8 billion in growth between 2022 and 2028, i.e. development at a compound annual growth rate of 20.4%.
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Challenges to be won, a business model to be found
While GameFi has development potential that could allow it to move beyond traditional games, industry companies need to take it back a series of challenges.
They must to improve user experience blockchain games, particularly by eliminating or lowering gas costs or the complexity associated with holding and trading NFTs. For Jack O’Holleran, many efforts “around conviviality” must be implemented to massively attract users to GameFi.
Improving the user experience isn’t the only challenge that companies in the sector face. They also need to find a valid business model. Today, GameFi players can choose between play-to-earn and play-to-own (P2O).
In the play to earn gamesplayers are mainly motivated by financial rewards, in the form of cryptocurrencies or non-fungible tokens, which they can earn. The play their own games also earn these rewards, but the players seek fun first – just like in classic games.
Play-to-Own therefore delivers additional features versus play-to-earn, such as various rewards that gradually unlock in the game and allow a player to improve the value of a game asset they have earned.
The GameFi could then register a exponential growth. It attracts more and more traditional video game giants, such as Ubisoftcompanies that need to evolve to avoid offering long-term obsolete products.
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