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Cryptocurrencies and video games have a close link like no other. Gamers were among the earliest adopters of cryptocurrencies in the real world. Many of them used Bitcoin to buy video games, new consoles, or new components for their PCs.
That relationship evolved to the point where the two worlds collided. From Kitty Inu's Kitty Cart, to Axie Infinity and Decentraland, crypto gaming is more real than ever.
This leads to a world full of new possibilities, and one key question: Will the future of crypto gaming be mobile?
Video games are one of the most profitable industries in history. It was one of the few industries that thrived in the COVID-19 pandemic. According to reports from Newzoo, global consumer spending on video games is set to bring in $200B in revenue by 2022.
Since their first release, video games have invaded every home in the world. In some form or another, almost everyone has played video games. The vast majority of the world has a console at home. Right now, you have a cell phone in your pocket, which today can be a gaming device. While not everyone has a PS5 or a gaming PC, everyone has a cell phone. And the vast majority have at least tried a mobile game.
Yet, many tend to dismiss mobile games. They don't realize that mobile games are the industry's largest and most important part. For example, console titles will generate about $57 billion in revenue this year. PC games will yield slightly less than this, with revenues of $41 billion. Mobile games will generate much more than that. This part of the industry will take in $103B this 2022.
This is because mobile games are much more accessible than other video games. They require a minimal investment compared to buying a console or building a gaming PC.
With this data, there is only one thing left for us to do: Imagine the mix between blockchain and gaming.
Blockchain games embrace the cryptocurrency ethos: They are decentralized and open to everyone interested. Blockchain-based games have been a thing since 2017 with CryptoKitties. The entire game is based on NFTs. Every kitty is an NFT that you can sell in the game. Once you buy your first kitty, you are ready to go.
Another similar game is Axie Infinity. There, you buy characters called Axies to play. Once you get your pets, you can play in-game battles and earn SLP tokens.
But there are some problems with these types of games. For example, to play these games, you must buy specific cryptocurrencies. It's not like you can download them and start playing immediately. You have to buy crypto, buy an in-game character, and then you can start playing.
Some users of the game exchange sell their obsolete characters to new ones. This situation can be detrimental in the long run. New users are at a disadvantage if there is no per-level system.
The big question of sustainability also comes in. Many of these games have an almost infinite supply of tokens. If more and more reward tokens are printed, you will need more money and user flow to justify it. At that point, it's a house of cards waiting for the slightest bit of wind to fall.
Video games, in general, are addictive. People spend hundreds of thousands of dollars a year to play some more. Arena of Valor has generated $14.6B in revenue. PUBG Mobile has had an $8.4B revenue in 4 years. Clash of Clans has done $8B while being one of the most recognizable names in the space. Pokémon Go has done over $7.7B. Candy Crush, the most simplistic concept in mobile gaming, has done over $7B in revenue.
Do you see the trend? People are willing to spend their money to play a little more, to have a slight edge over everyone else. The money they spend never gets back. But with mobile blockchain gaming, it could.
The truth is that crypto matches the microtransaction nature of mobile gaming. Yet, it doesn't necessarily have to be a play-to-earn crypto game. These types of games are tough to sustain at the tokenomics level.
The only way for these games to work is for them to be a type of gambling, like DeRace. In DeRace, players bet on a virtual horse. But just as they can win, they can lose. One lousy streak, and boom, you have one less user. If the crypto world succeeds in tokenizing in-game assets, it will be a smashing success. Users could get their money back. There would be no reason to see these games as burning money
The truth is that crypto gaming, the metaverse, and augmented reality are strongly linked. The convenience of having a phone in your pocket will only take us one step further. Will you and your phone be a part of it?