The future of gaming finance: digital assets and collectibles
The future of game financing (GameFi) is likely to be impacted by a number of factors, including the continued growth of the gaming industry, the changing preferences of players and investors, and new technologies and business models.
The gaming industry has become an integral player in the global economy, with revenues reaching over $150 billion in 2020. According to Statista, it is estimated that the global gaming market will amount to $268.8 billion annually in 2025, up from $178 billion in 2021. As a result, the gaming industry has attracted a lot of attention from investors and financial institutions. In fact, a number of companies and funds have been created to help people invest in the industry.
How can gaming be approached from a financial perspective?
The gaming industry presents a wide range of opportunities for financial analysis and investment. Here are some of the ways to financially strategize for success in the gaming industry: game development and publishing, in-game monetization, Esports, digital assets and collectible
What are digital assets and collectibles?
Digital assets and collectibles, also known as non-fungible tokens (NFTs), have gained significant attention in recent years and have the potential to play a significant role in the future of gaming and other industries.
They can simply be defined as virtual items that have value and can be bought, sold, and traded like physical collectibles. They can take many forms, including in-game currency, virtual goods (such as weapons or skins), and even non-fungible tokens, which are unique digital items that cannot be exchanged for other items of equal value.
NFTs are unique digital assets that are stored on a blockchain and can represent a wide range of items, including artwork, music, videos, in-game items, and more. They can be bought, sold, and traded like traditional assets, and their uniqueness makes them highly valuable to collectors.
In the gaming industry, these tokens can be used to represent in-game items or assets that have real value within the game. For example, a rare in-game weapon or character could be represented as an NFT, allowing players to own and trade these items as if they were physical assets. This can add an element of ownership to in-game items, which can increase their value and appeal to players.
Digital assets and collectibles can be used in a variety of ways within the gaming industry. For example, they can be used as in-game currency to purchase virtual goods or to access certain game features. They can also be used to represent a player’s status or achievements within a game, or to show off to other players. Many people also collect digital assets and collectibles as a hobby, similar to how people collect physical items such as stamps or coins.
How can digital assets and collectibles potentially shape the future of gaming?
Let’s look at some of the ways that non-fungible tokens can impact the future of GameFi:
- Through increased ownership — one major benefit is that they can provide players with a sense of ownership and scarcity for in-game items. This can create a more immersive and engaging gaming experience, as players feel like they are actually owning and trading unique items.
- New monetization models — NFTs can also enable new monetization models for games. In addition to traditional methods like microtransactions and subscriptions, games could potentially generate revenue by selling these tokens or by integrating them into gameplay mechanics. This will allow developers to create more value for players and generate additional revenue streams.
- Greater interoperability — the future of GameFi could potentially facilitate greater interoperability between games and other platforms means. For example, an in-game item represented as an NFT could potentially be used in multiple games or even in other non-gaming applications. This could create new opportunities for revenue generation and cross-platform partnerships.
- Increased accessibility — It makes it easy for people to access and play games, as they do not require physical copies or even downloads in some cases. This could make it easier for developers to reach a wider audience and for players to discover new games.
- By creating investment opportunities — the increasing popularity and value of NFTs could also make them an attractive asset class for investors. Many investors are already interested in investing in the gaming industry, and they provide a new way to gain exposure to this market.
Predicting the future of GameFi is seemingly impossible, as it will depend on a variety of factors such as market trends and technological advancements. However, certain trends that will determine its trajectory include regulatory developments, the use of cryptocurrency and blockchain technology in gaming, and of course, digital assets and collectibles.
Digital assets and collectibles are already playing an increasingly important role in the gaming industry. Presently, they can be bought, sold, and traded just like traditional physical collectibles, but with the added convenience and accessibility of being digital. And right now, nothing beats that, because, already, in-game items are being bought and used by hundreds of millions of gamers around the world.
The potential for digital assets and collectibles to shape the future of gaming is significant, as there are limitless possibilities, thus making it an exciting area to watch as the technology continues to develop.
Ever since P2E went live on WAM — the first hyper casual gaming platform, players have been able to earn cool rewards in NFTs and WAM tokens ($WAM is the official and only cryptocurrency on WAM) while playing hyper-casual games. But the best part is that these rewards are not limited to just players, as developers and promoters also get the chance to earn. Therefore, it will suffice to say that these digital assets are not for just players but developers alike.
And therefore, while we can’t possibly predict the future of these assets, one thing is sure — the prospects they have in shaping the future of GameFi is bright.
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