Games with Blockchain — part.1
The first video games, such as the classic Computer Space or Pong, were created between 1971 and 1972 (almost 50 years ago). At that time, the production volume was incredibly low, and there was often a single person responsible for the complete development of the game: from the idea to the graphic design, programming, and the final product vision. Even then, video games were already considered a hit, being subsequently the technological development and access to leisure devices (computers, game consoles, smartphones or tablets) the match that lit the fuse of this explosive leisure instrument that has ended up dominating the world whole.
Today, millions of people actively collaborate in the production of renowned titles, just as video games have become part of modern culture, to the point that many books and films are based on them (Warcraft, Assassins Creed).
During the evolution of the industry, new game modes consisting of PvP (Player Vs. Player) have been emerging in online and live formats. From the popularity gained by games like Starcraft, Counter Strike or League of Legends, eSports (sports video games) has emerged, a form of competition whose streaming broadcast can congregate multimillion dollar audience levels on the screens, with prizes that can reach millions of dollars.
Overview Games Market.
Why is this industry as interesting as an investment alternative?
To answer this question, just look at some interesting figures released by the people of Newzoo regarding their annual report on growth prospects in this sector. In its recent publication of this year, it highlights the fact of the promising numbers that this projected industry has for the coming years, which makes it undoubtedly a desirable segment for any blockchain platform that wishes to capture these opportunities.
According to the 2019 game market report, There are now more than 2.5 billion gamers across the world. Combined, they will spend $ 152.1 billion on games in 2019, representing an increase of + 9.6% year on year.
Similarly, growth accumulates in the format of Mobile gaming (smartphone and tablet), meanwhile, remains the largest segment in 2019, growing + 10.2% year on year to $ 68.5 billion — 45% of the global games market.
As for geography, there is another interesting fact. The United States is now estimated to be the world’s number 1 gaming market by revenue, with $ 36.9 billion this year, driven primarily by its + 13.9% growth in console gaming revenues. But despite China’s Licensing Freeze, APAC Remains the Biggest Region by Game Revenues. This year, the Asia-Pacific (APAC) region will produce game revenues of $ 72.2 billion, accounting for 47% of the global total.
And if that were not enough, Global Games Market continues its trajectory of healthy growth. The predictions for the sector is that consumers spend on games will grow to $ 196.0 billion by 2022, a CAGR of + 9.0% between 2018 and 2022.
Games and Blockchain
In-game monetization is now the norm in the most profitable games, so subscriptions start to substitute the traditional paid game business model. For publishers, finding the right mix of business models in an extremely dynamic market, with pressure from politics and a diverse game enthusiast community, will be the biggest challenge in the coming years.
And part of this solution involves the staging of blockchain technology in the video game industry, perhaps in a different way than we have been accustomed to, but initially supporting everything equivalent to monetizing and empowering the player about their performance. in the games and especially in the eSports, a market in frank increase. According to estimates, 1,100 million dollars is the number of benefits that eSports will generate in 2019, which represents an increase of 26.7% year-on-year.
Prize bags on eSports also eclipse other sports. For example, the prize pool of the 2018 DOTA 2 Tournament is just under $ 25 million, more than double the main championship bag of that year’s PGA Tour Masters of $ 11 million. Clearly, the opportunity in the eSports market to grow and integrate with cryptocurrency networks is huge.
And it will be increasingly feasible to observe live developments based on the blockchain by acquiring tokens with immutable and decentralized technology that will leave behind the headaches about the solvency of certain centralized institutions, how it happened in the decades of 1980–1990 before the entry of Bitcoin and its underlying technology.
On the other hand, by providing direct opportunities from creator to consumer, blockchains allow game developers to build and distribute their products without the need for costly intermediaries. This also allows you complete control over the digital rights management process, using tokens and smart contracts.
Beyond the direct monetization through the ‘tokenization’ of game titles for gamers, the blockchain will ‘see’ it silently supporting this industry in another important subsector for eSports mainly, such as CLOUD GAMING. For this, traditional providers such as Amazon Web Services, Microsoft Azure and Google Cloud, IBM, and Alibaba, will be strong competitors with emerging proposals under distributed accounting technology. Already in 2018, these companies showed interest in blockchain and this year some have already taken important steps in that regard.
As if that were not enough, ConsenSys, one of the key players in the blockchain space, which operates as a risk production studio and blockchain software development consultancy, moved to the cloud industry through a partnership between Kaleido, a New start part of the ConsenSys Mesh and AWS call. The company aims to provide AWS customers with an “easy button” to enter the same technology that supports cryptocurrencies and decentralized applications.
Consensys recently partnered with semiconductor producer AMD and investment management firm based in Abu-Dhabi Halo Holdings to work together on a new project called W3BCLOUD, a blockchain-based cloud computing infrastructure.
With the demand for the gaming sector via eSports, its cloud services needs will be exponential with the growth of the subsector, so the support of blockchain technology to make Cloud 2.0 a reality will be essential to guarantee the development of this industry.
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