Play-to-earn games rely on blockchain technology, as you can earn items while playing the games in the form of crypto tokens, non-fungible tokens (NFTs), and through a process known as staking. Many of these games will reward your time by offering these rewards. You can also sell and trade digital assets like land and weapons in the form of NFTs to other players in a dedicated marketplace. As these items are tokenized, they are unique assets that cannot be replicated stored securely in a distributed ledger.
The rising switch from physical games to digital games has led the gaming industry to focus on hardware compatibility and efficiency. Free2Play (F2P), Massively Multiplayer Online (MMO), and multiplayer games have progressively gained massive popularity, a trend which is anticipated to continue over the next eight years. The rising disposable income level is leading to increased consumer spending on gaming products. Furthermore, the changing consumer preferences have led to the large-scale adoption of more advanced gaming consoles equipped with sophisticated features such as record and share and cross-platform gameplay.
The gaming industry continues to grow each day, and Play-to-Earn is just starting.
Games have long had their own currencies. But for the most part, those were centralized, in-game, and only usable on the in-game markets. Blockchain is changing that dynamic. Now, not only are in-game items being produced as tradeable NFTs, but game currencies are now often created as blockchain tokens. This enhances play to earn opportunities by providing an easy method for players to cash out, and also opens up interactions with external services such as decentralized finance.
The trend of social media gaming is expected to have a positive impact on shaping up the market growth in the near future. For instance, a substantial percentage of the global population uses social networking sites such as Facebook and Reddit for gaming. The availability of different genres of games such as action, role play, simulation, and strategy is anticipated to attract more customers. Growing popularity of eSports tournaments and the increasing number of professional gamers is anticipated to increase the sales of video games and digital items alongside gaming hardware and software.
In 2021, smartphone games generated approximately US$81.5 billion in annual revenue, representing 52% of the global gaming market during the measured period. Console games ranked second, with USD 50.4 billion in global revenue.
Gone are the days when purchasing a game was the only monetary transaction in the process: today, digital gaming platforms are replete with subscription services, downloadable content (DLC) and add-ons, as well as in-app or in-game purchase options for virtual items or game-enhancing experiences. A 2020 survey of game developers revealed that the most common business models in the gaming industry were paid downloads, followed by free-to-play titles. Also in the gaming world NFT and Play to earn new forms of monetization allow for a continuous increase, improvement and evolution of the gameplay.
The metaverse is one of the trending technology platforms attracting various social networks and technology leaders, as well as online game creators, to enter and establish their presence in the market.
The metaverse is a fast-growing trend with a considerable user penetration rate for various applications. Due to the rise in the gaming industry worldwide, the media & entertainment category is expected to account for the largest revenue share of 31.08% during the forecast period.
Companies are increasingly focusing on organizing virtual music concerts, and the adoption of this concept by a growing number of companies is likely to drive revenue growth in this segment.