Why the Gaming Industry Could be the Next Blockchain Adoption Frontier
Gaming is one of the industries that has experienced steady growth over the years. In 2018, the industry generated about $134.9 billion in revenue, an increase of over 10% of 2017 revenue. In the US market, the total revenue from this market was estimated to be about $43.5 billion, with software purchases accounting for 82.4% of the total revenue.
This positive market outlook is projected to continue as the industry's revenue is expected surpass $180.1 billion. This growth is likely to be driven by new and compelling gaming content, artificial intelligence and machine learning, as well as virtual reality experiences. Like other industries where over 90% of the market is digital, digital connected channels will play a huge role in supporting this growth in the gaming space.
For this reason, blockchain technology is increasingly becoming relevant in the industry as gaming firms begin to adopt the technology. Recently, an Australian-based video games developer partnered with HashCash Consultants to roll out crypto exchange and tokenization services for the industry.
Business Model Shift In a press release, HashCash noted that its white label solution will enable the Australian firm, whose identity was not revealed, to further monetize video streaming services, which is currently characterized by once an year payments. The decentralized channels will enable the gaming firm to create a new revenue stream by enabling micro-payments between various stakeholders and participants.
Streamers would also earn cryptocurrencies through advertising and subscription charges while spectators would earn tokens by watching featured advertisements and broadcasts. Through blockchain’s inherent benefits, HashCash Consultants is confident this business model shift will change the gaming universe.
Blockchain Frontier To improve user experience, the gaming industry has shown to be receptive to new technologies and control systems such active governance. This is mainly because the target audience for this industry is the young population. With the gaming industry currently transforming into a huge business, its success will likely be complemented by actively following the eight elements of good governance to take care of both the company and its stakeholders. In this business model, the initial purchase of a game marks the start of a continuing revenue stream. For instance, the Fortnite Battle Royale game generated about $1 billion through in-game purchases.
According to Joseph Oreste, founder and CEO of Qupon, blockchain, tokenization and cryptocurrencies provide a new playground for the gaming industry to innovate.
He says, “Gaming is very popular for both youth and adults alike. There are billions of dollars spent globally and I believe distributed ledger, tokenization and cryptocurrencies provide a new playground for the gaming industry. It will be interesting to see the innovative ways gaming will be adapted to distributed technology.”
Considering this potential, HashCash Consultants ’innovation could only be the beginning for blockchain adoption in the gaming space.
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.