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Revenue generation is a category of blockchain-based games created by player-owned economies through game assets represented by tokens and NFTs.
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Video games changed the entertainment preferences of an entire generation. Since the introduction of Tennis for Two in 1958, the game has taken the world by storm with games like League of Legends, Fortnite and Minecraft playing millions of players.
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In 2018, Reuters reported that it overtook other entertainment media such as film, television and music in terms of revenue, showing that this meteoric rise is not slowing down. The Entertainment Software Association (ESA) estimates that 227 million Americans play video games, roughly 66% of the nation’s population. Spanning multiple genres and devices, video games are a powerful force in culture and entertainment.
Video game developers build multiple digital worlds, expanding a wide range of game mechanics, visual aesthetics, and narrative experiences. Whether through compelling storytelling, pixel-perfect gameplay, or skill-based multiplayer dynamics, video games provide players with an interactive experience that is difficult to replicate through other media.
In recent years, a new type of gaming experience called play-to-win (P2E) has found traction in the blockchain ecosystem. This emerging gaming category offers integrated ownership of gaming currencies and products powered by cryptocurrencies and non-trivial numbers (NFTs), which are directly connected to the larger, interconnected digital economy of real-world importance.
This article examines the impact of this fundamental change on gameplay blocks, significantly rewarding players for the time, energy and money they invest in games.
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Game value refers to the occurrence of in-game items that have real-world value. For many popular games, the cost of play has become an unstoppable trend. Indeed, traditional game economics models have shown that given the right context and environment, players will value video game content, from game features to purely functional and cosmetic game elements.
Strong markets for Counter-Strike: Global Offensive (CS:GO), Valorant, World of Warcraft, Genshin Impact, and others, and valuations of rare game products show a growing trend in player-generated value. many video games in different genres.
CS:GO is a popular and highly competitive multiplayer first-person shooter (FPS) game. In a standard format, players are placed in five teams against five other teams. Equipped with some games that are equally accessible to all players, the best gaming experience and the accuracy of the aim rise to the top of the leaderboard.
The most valuable cosmetic skins in CS:GO sell for tens of thousands of dollars on the in-game market. Within the game platform, players can also purchase “boxes” or loot boxes that distribute a variety of game items. These items are cosmetic, but rare items are highly valued by the CS:GO player base.
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Other video games, such as massively multiplayer online role-playing games (MMORPGs), offer elements that give players an advantage in gameplay. These games often use a “pay-to-win” model, where the players who spend the most money and time have the most powerful traits or items in the game.
However, unlike CS:GO, MMORPGs often have no official ties to the real world economy, often with secure, permissionless in-game marketplaces where in-game goods are sold for real-world currency. Illegal trading is common, with players communicating outside the game for peer-to-peer transactions or using third-party websites that facilitate transactions without the consent of the game provider. This may result in in-game penalties, as players are taking a risk by engaging in this type of behavior. However, the demand is there and there are many participants in these underground markets.
In “runaway games” like Genshin Impact, which encourage players to spend real money on loot boxes to get the best items and characters, the value of the game is a major part of the gamer’s income. Genshin Impact’s popular gachapon model demonstrated its power as a value driver of game merchandise, generating more revenue than any other game in the game, even for games without an integral player market.
When players destroy enemies in skill-based FPS or get the most powerful items by looting MMORPGs or dungeons, there is no doubt that skins are the true value of these gaming products. created and maintained by players. By deciding to purchase in-game items or loot boxes, players add very real value to an intangible digital item.
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The concept of in-game pricing can often confuse non-gamers. Why do players rate in-game items so highly?
The main reason is that social motivations such as peer competition and social interaction, along with factors such as escapism and motivation, form a major part of players’ motivation to play video games. Players often build communities around the games that best satisfy these intrinsic needs and create value from them.
This can be understood by looking at the example of a common sport like golf. At the basic level, only golf can be played. Grab a set of clubs, find a course and you’re good to go. This is single player golf.
However, single-player golf gains additional dynamics in multiplayer mode. With a group of friends, golf becomes a competitive and social experience. Each golf shot is compared to the others, held to the same standard, and the hierarchy of skill becomes clear. Friends (or enemies) are made, social hierarchies begin to emerge, and the game becomes more important to players as a meaningful way to spend their time.
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Social status in the context of golf is expressed through items such as clubs and clothing, reinforcing and transcending simple utility in value. In single player mode, golf clubs that are considered better, stronger or more accurate than just one player’s shots. Now those golf clubs are more valuable with the addition of social dynamics and competitive play. With this new dynamic, goods such as professional shirts and caps are increasingly becoming a form of social value and real status.
This is very common in the popular professional sports industry. From athlete-sponsored shoes to signed jerseys and game gear, fans around the world find value in these collectibles, many of which have no practical use. Popular video games experience valuable effects such as in-game items and currency.
As a community, gamers approach games that meet their needs in terms of entertainment and community. Whether it provides an exciting competitive experience, entertainment, or fulfills some other basic need, the value of a game is built by connecting the game and the players. With the right built-in functionality, the player and the game work together to build a solid foundation of the game’s value.
In the current model of the mainstream video game industry, game content is managed by a single entity. This organization includes gameplay, game access, and unique game features. This is commonly referred to as centralization – the concentration of power in the hands of one party or smaller parties.
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In this sense, the game value created from these online multiplayer games is mostly captured and managed by the game developers or publishers, and in some cases shared to a limited extent. In addition, in all online games, the control of the price is given to the player.
A clear example of this can be seen by comparing two popular multiplayer video games today: Valorant and CS:GO. Both of these are skill-based FPS games, everything in-game is cosmetic and has no use in the game. However, many CS:GO players have greater opportunities to gain value and revenue from the resources they put into the game due to open third-party marketplace providers and their local ability to sell products. In contrast, Valorant does not support third-party marketplaces for in-game items.
In CS:GO, well-designed game mechanics, a strong community of competitive players, and open markets facilitated by third parties combine to create great gaming value. Each item in the game has a market value, players are rewarded significantly for acquiring these items, and the game developer makes a continuous profit from the players’ in-game enthusiasm.
The importance of open markets cannot be overstated. In closed systems without a market, the price of a game is limited to the initial purchase price of a given game item, as in the example of casino games. A similar example is a company that sells rare and valuable shoes, but completely prohibits third-party transactions. By opening up these elements to free market dynamics, strong economies based on public demand act as money multipliers. The game company sets the same fixed price as before, but now the player can sell
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