From consoles to computers and computers to mobile devices, transitions in the game industry created an environment where players gradually became more connected and intertwined within the global network, more integrated into our daily lives, and where representation of our desires in the virtual world became possible. Conjointly, as CEO of Entertainment Software Association (ESA) Michael D. Gallagher stated, because gaming industry anticipates demands by “Giving people what they want before they realize that they want it,” the industry’s very own unique identity pushes them to excel and maintain a wide range of age groups that are always curious and adventurous in adapting to new technologies.
According to Newzoo’s report, Global Games Market which was $121.7 billion in 2017, is expected to grow to $180.1 billion by 2021 with a compound annual growth rate(CAGR) of 10.3%. Though how endlessly young, promising, and remarkable the market conditions are, problems always exist.
Losing your identity in the digital realm is one obvious problem, what else?
Data breach puts immense costs to publishers — Sony estimated $171 million loss from Playstation Network hack in 2011 — and leads to possibility of losing your identity in the digital realm (for more information regarding data breach, read ‘Let’s Talk with Numbers’). Asides from cost for publishers and online world identity, what other problems does the gaming industry have from its unique characteristic?
- In-app purchases
In the mobile gaming industry, in-app purchase are common monetization strategy. It allows users to experience game through free downloads, and if publishers’ contents are interesting or generates enough curiosity and challenge, in-app purchases of game currencies are made to enjoy broader contents, buy items, and to compete with others.
As shown in the picture above, 19 of top 20 free games have in-app purchases. In-app purchases must be considered as a reward to publishers as their work generated enough interest and challenge to the worldwide gamers. However, the transaction fee that the intermediaries receive, is something that needs to be reconsidered.
According to App Annie, top 5 countries spent total $52.72 billion in games through Google Play, iOS App Store and other third-party Android combined in 2017. There are many ICO projects tackling to remove existing transaction fees from the financial industry. As game industry is closely associated with online payments, transaction fees from the gaming industry must also be reassessed to provide greater benefit to the individuals and creators.
- Data-collecting social login system
Because users despise remembering multiple IDs and PWs, they prefer, choosing Google or Facebook as a login method. Service providers like Google and Facebook provide services that we can search, share, and communicate. Consequently, the trade-off is that users must pay in the form of their personal data. However, when they place themselves as a social login solution, though designed for simplifying the login process for users which leads to a higher conversion rate for service providers, the range or amount of data Google or Facebook are providing to service providers are uncertain; in essence, users know what they are getting, but they do not really know what they are paying in return.
— Cnet
Regardless of Niantic’s true intend, individuals are still blind from trade-offs of social login. Consumer identity and access management in the game industry must be treated with as much caution as any other industry.
Gaming industry and identity blockchain
Some, ranging from individuals to reports from prestigious organizations, state that blockchain technology is still at its early stage of mass market penetration, just like the early days of TCP/IP. However, when innovative yet cautiously-optimistic technologies target the right industry, with easy usability and strong strategic partnership, the duration of seamless market adoption will be minimized. Just as how AuthenTec, a Fingerprint Sensor company, demonstrated its full potential in the market when acquired by Apple to provide Touch ID. Identity in the gaming industry is important as your identity in the gaming industry also can define who you are in the digital realm. Besides providing identity in the digital realm, problems that blockchain identity protocols can solve in the gaming industry seems countless.
— Calvin and the Metadium Team
