Blockchain and the evolution of business models in the game industry

The first computer games were developed in the late 20th century with the sole purpose of entertaining their audience. One of the first goals was to distract players from their routine work and provide them access to a fantasy world. Very soon, games began to compete for users’ time against traditional forms of entertainment, such as movies, circuses, theater performances, zoos, etc.

Planet Earth entered the new millennium with a population of over 6 billion people, and the forecast is that this number will reach 8 billion as early as 2023. If we assume that computer games will cease to be an alternative to work and become complementary to it, there will be 4 billion gamers in the world by then.

Not surprisingly, the traditional boundaries between games, media, sports and communication are rapidly disappearing, creating new business partnerships and causing more and more mergers and acquisitions around the world.

The still-active virtual world Second Life, which represented a first attempt at a portal to the metaverse with its own in-platform virtual currency, was an important example of this process between 2003 and 2006, during its most rapid period of growth. Players in many countries quit their jobs and dedicated 100% of their time to the virtual world.

But why is the use of blockchain in games causing a real revolution in the gaming industry? That is what this article seeks to answer.

The gaming markets

According to data from mid-2021, there were 3.2 billion people playing computer games, and as a report by Newzoo states, the global gaming revenues in 2021 were about $180.3 billion — 20% more than before the pandemic began in 2019.

Digital distribution channels are responsible for most of this revenue. Mobile games act as the main growth engine for the games industry, driving this segment to $93.2 billion dollars.

The game development industry has experienced a profound transformation over the past five years. With the emergence of mobile app stores and digital distribution platforms, even smaller studios have…

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