Discover how Game Studios can take advantages of GameFi and Web3?

How can Game Studios take advantage of GameFi and Web3?

GameFi, in the Blockchain is the new bride video gaming brands wooing, including Core Games and EA Sports, as it provides new revenue streams. It is not difficult to see why people coveted the gaming industry. Fortune Business Insights estimated the gaming industry at $200 billion, about the same amount as China’s 2021 defence budget.  NFTs boom in 2021 rubbed on games, too, with game-related NFTs garnering $4.8 billion – 20 % of all NFTs sales.

The sales volume and enthusiasm to be part of the early adopter have driven numerous companies to set an eye on blockchain and NFTs-related games. It is difficult to ascertain if the game industry will continue booming through NFTs and blockchain.

However, with the blockchain here to stay, gaming brands will find a point of leverage for better game design and a better revenue model.

Despite many brands subscribing to this point, it is still difficult for many to understand how to leverage GameFi and Web3. But the question is, will gaming brands benefit from gamification and web3? If the answer is affirmative, what are the benefits, and how can brands understand the potential of incorporating NFTs, tokenomics, IGO (a tool or process for game studios to get funds for their game creation), and others in their game designs?

 

Game studios’ eyes on Web3 and GameFi, what are the benefits?

A few years ago, gaming was a ‘children-thing.’ Then came the pandemic; it turned into not just fun but a project where you could earn a few bucks. Is this true? In 2020, the time adults (45-54) spent on games rose by 59%, with a 76% increase in money spent.

Even older adults are not left out with a 48% increase in time spent and a 73% increase in the money spent. The gaming industry is larger than the music and movie industries combined, with over 3 billion active players.

Apart from gaming fun, popular gamers have become celebrities with dominant YouTube channels; other careers and lifestyles have also popped out of gaming. This is easy to see why there are many gaming studios. However, leveraging web3 and gameFi remains a hassle. Top of them is the confusion about how to leverage the next phase of the internet. So what are the benefits of web3 and gameFi to studios?

 

Initial Game Offering (IGO)

The initial game offering is the newest innovation for game developers to finance their game projects. Similar to ICO, the difference is that IGO is for gaming projects incorporating NFTs as the game currency and incentives. Investors fund the game projects offered by IGO Launchpad and expect a yield when the games gain traction.

Game studios like CryptoBlades (SKILL), Axie Infinity (AXS) and others have used IGO to their advantage. For instance, Axie Infinity IGO had over $1.1 billion in sales in 2021, equivalent to the second highest jackpot in history.  Investors key into IGO because it provides early access to gaming assets, which gives high probable ROI. However, this is leverage for the studio to source money for a project.

In a nutshell, the advantages of IGO to a studio include quick access to funds; no pressure to give up the company’s equity, total ownership of the game, and funding of future projects as a successful IGO sets the pace for the next projects. Understanding IGO, how to launch, the target markets, and token allocations still remain a mystery to many studios. With Bitsapiens doing the dirty work as your consultant and CTO, you will have a successful IGO launch.

 

Non-fungible Token (NFTs)

Blockchain technology is disrupting all industries. NFTs, a major use case of blockchain, are revolutionizing the gaming industry, bringing core game features and modifying the existing portfolios. NFTs added fast changes, better benefits, and reduced risk to the video gaming sector. It allows players to buy and sell in-game assets in the game marketplace, providing the mechanics for better engagement in the game marketplace and boosting revenue. Therefore, NFTs create a new market but also boost the game mechanics we already have. In addition, the interoperability of NFTs on different platforms makes collaboration between different games and platforms possible.

NFT with blockchain technology in the gaming industry also creates a decentralized gameplay experience where players control games with more influence and modify some metrics. This decentralized nature transforms the ecosystem into more secure and flexible, making investors pull funds into building more games and earn more revenue.

 

Better tokenomics model

GameFi is a nascent industry. The market value is $14 billion, the same amount earmarked for Singapore’s automated mega-port; it was estimated to reach $50 billion by 2025. The huge potential in the industry has sprouted many studios that hardly survive – pointing to poorly developed tokenomics as one of the major causes. Tokenomics give investors the impetus to invest and determine the revenue feasibility of the project. Meanwhile, blockchain technology is the foundation of many games, offering studios the leverage to launch games with NFTs as the currency.

However, the game sustainability rests on tokenomics to keep the revenue model in check, especially if the game witnesses an exponential spike in players and winners of in-game milestones. A good tokenomics design is crucial to the game; it reduces the risk for investors and guarantees the game’s long-term feasibility.

Maintaining an inflationary and deflationary activities balance, controlling the in-game economy, separating governance tokens with a fixed supply cap, and refining the game tokenomics will keep the loss in check. These are the works of Bitsapiens — we are primarily here to design and execute your tokenomics.

 

Incubators and launchpads

Additional benefits of gameFi and web3 to the game studios is the provision of marketing and development support, which big tech companies have at their beck. For instance, Seedify is a leading gaming incubation and Launchpad platform where the studio can pitch their IGO, crowdfunding, and marketing. Therefore, studios now have a wide support system, especially when it is back with a great consulting service.

 

DAOs on Gaming

Web3 governance model, decentralized autonomous organizations (DAO), provides a new type of community. DAO empowers the community to make decisions that will benefit the game project. Instead of a corporation, each decision is ratified by the members. In addition, owning some tokens qualifies each individual to have a say in the organization – who will not contribute meaningfully to a project they invest in?

 

Conclusion

Studios want to design games that players will enjoy and love – providing brand visibility, engagement, and revenue for the brands, players, and investors – these are what web3 and gameFi promise.

Through Initial Game Offering, NFTs, incubator programs, tokenomics, and DAO, studios can leverage web3.

However, the major problems face by brands are how to incorporate these features in their game design without excessive loss of money and time – that is where Bitsapiens comes in.

We provide consulting and CTO as a service to game studios to understand the potential of incorporating NFTs, tokenomics, and IGO (Inicial Gaming Offerings).

Let’s build together!
we’re all gonna make it!

Contact us to explore how to design and create a good tokenomics for your project.