I am a professional journalist and gourmand with an inexplicable love for caffeine. I admire old architecture and find comfort in fiction books. I am also an A1-level certified French speaker—bonne journée!
- ByAlinda Gupta
- Published February 21, 2022
From applying transaction fees to selling in-game assets–here’s how crypto game developers earn money.
About 60 percent of American and UK-based video game developers have started using blockchain technology. For them, the scope of innovation and real-world value offered by “play-to-earn” crypto games—absent in traditional video games—enhances their appeal. Players, too, have been enjoying the chance to earn money while playing video games, so much so that some have decided to quit their full-time jobs to pursue gaming. Some players have been able to earn up to a million dollars from playing blockchain games. Clearly, these games are proving profitable for both players and developers.
What’s more? NFT games generated US$2.32 billion in revenue in the third quarter of 2021. Axie Infinity became the first game to surpass US$1 billion in sales from their non-fungible token (NFT) assets, with their current revenue surpassing US$3 billion.
The co-Founder and COO of a blockchain gaming platform The Sandbox, Sebastien Borget, shares, “With funding flowing, user adoption figures skyrocketing and the world’s leading media publications reporting on our rise, this is the most exciting period in blockchain gaming that the world has ever seen, and certainly, in the six years that I have been personally involved.” From Axie Infinity to The Sandbox and Alien Worlds—numerous blockchain games have taken the world by storm, ushering in billions of dollars in revenue for developers.
So, how exactly do these developers make money? Let’s have a look!
Largely, there are two ways:
Transaction fees
When a player signs up to play on a crypto gaming platform, they are required to pay a transaction fee for purchasing in-game digital currency. That’s primarily how game developers earn money. When more players purchase the native token, its value goes up, thus benefiting both players and developers.
In-game assets
Video games, like Fortnite, sell skins, or outfits, to their players. These help players blend into the game’s environment. Now, with the advent of blockchain gaming, Chief of Marketing at Bright Star Studies, Sune Thorson, expounds, “A game company doesn’t need to be the one selling the skins anymore to make money. Instead, we can facilitate the marketplace where the transactions of the skins take place on the blockchain. No matter where a cosmetic item is sold, the blockchain registers the transaction and charges a small fee which goes back to us.” That is to say that, with outfits being traded on blockchains, when players want to sell their skins for a profit, the developers will receive a cut of it, too.
These assets are usually sold in the form of NFTs. As per a survey, 50 percent of video game developers said that they intend on incorporating NFTs into their games. This gives players more real-world value as they are able to trade those NFTs and profit off of them.
The flip side
As profitable as crypto gaming may sound, it’s not so simple. The co-Founder of augmented reality platform OVR, Diego Di Tommaso, details, “Play-to-earn is not a magic pill that will make any game profitable for players, yet it sets a precedent and a canvas for such a value-distributing game.” Players need to account for the volatility of cryptocurrencies and the time it would take to start earning a significant amount with games.
Developers can rest assured that the scope to boost their income through blockchain gaming is only set to grow. In the coming years, as the industry expands even more, developers might even start trading their NFTs on other gaming platforms. Through inter-game interactions, developers will be able to expand their reach and revenue. The COO and Founder of cryptocurrency exchange WazirX, Siddharth Menon, concludes,“As more money is now being invested in the market, there’s no doubt that crypto gaming is all set to become an industry of its own. Several studios are also now jumping to the crypto gaming bandwagon, in an attempt to capitalize on the latest trend.”
Header Image by Flickr
- Blockchain, Features, Latest, Latest - Home
SHARE THIS STORY
- AboutAlinda Gupta
RELATED POSTS
Does Age Matter When Launching a Startup?
September 13, 2024
What does age bring to the startup table—barriers or benefits? Startups often conjure images of young, energetic founders like Bill Gates, Mark Zuckerberg or Steve
Are NFTs Making a Comeback? Top 3 Marketplace of 2024 by Trading Volume
September 12, 2024
Who’s the leading NFT marketplace this year? In 2021, the NFT market saw explosive growth, thanks in part to the soaring popularity of cryptocurrencies. That
7 Poetry Podcasts Perfect for Relaxation and Inspiration
September 10, 2024
Give your brain a poetic pause with these podcasts! Poetry is no longer a fading art—it’s experiencing a strong comeback, thanks in part to the
4 Startups Offering Sustainable and Creative Alternatives to Plastic
September 9, 2024
These startups are on a mission to ditch traditional plastic from our everyday lives. Plastic, whether in large items or microscopic particles, is found everywhere—from
5 Powerful Biographical Movies for Entrepreneurs Seeking Inspiration
September 7, 2024
Watch how dreamers in films battle odds to build empires. It’s not a cakewalk to be a startup founder. You find yourself buried under the
How AI Is Transforming the EdTech Industry and Learning Experiences
September 6, 2024
AI is driving smarter, more inclusive education solutions. Recent years have seen a steady rise in AI adoption, with over 35% of organizations using it