In the conventional gaming industry, the year has been lackluster due to delayed releases and subpar releases. Highly anticipated releases this year have been pushed back due to development crutches and the sub-par performance of rushed games like Cyberpunk 2077 in the past. Despite the disappointing news from anticipated avenues this year, 2022 promises to be one of the most exciting years in the gaming industry.
2021 has been a significant year in pushing forward the gaming industry with new innovations. Concepts like NFTs, Metaverse, Web 3.0, and collaborative initiatives have been at the center of the conversion due to the prospects offered by the transformative initiative. Metaverse is at the center of the revolution with expansive prospects.
Exploring the Metaverse – What are the Prospects
One of the most significant developments in 2021 has been the launch of the Metaverse. The hyperconnected landscape promises next-generation visual involvement in the next iteration of the internet. Leading companies, including Facebook (Now called Meta), have dived into the space with a significant commitment towards expanding the prospects.
Metaverse today offers insight into the promised future of the internet where digital connectivity is enhanced through a user-centric economy and
Role of NFTs in Gaming – Exploring the Visual Appeal
According to a recent report by the Guardian, the total capitalization of the Non-Fungible Tokens (NFT) market has exceeded $22 Billion in 2021. With over 70,000 transactions, NFTs offer a promising insight into the prospects of gaming as well.
Leading venture capital firms, including A16z and Genies, have signaled their trust in the growth of the NFT-gaming market by investing $8 Million and $65 Million, respectively. These investments offer a clear insight into the promising landscaping of the gaming industry in 2022.
Decentralization is another core theme emerging from the progress of the gaming industry in 2021. Companies like Sandbox have been pushing forward towards the creation of authentic customer experiences without the involvement of conventional financial structures and technology. The progress of the company has been further reaffirmed, with over 16000 users purchasing virtual land in the Sandbox gaming metaverse. The company also established partnerships with leading sportswear brands to offer creative freedom to gamers across the ecosystem.
Evaluating the Existing eSports Landscape and Forecasts
Digital expressions through online identities through games and social media is leading to unprecedented consumer interest in digital products and cosmetic elements.
Here are some insights into the current landscape of the eSports industry.
- Game Skin Sales – Leading games including Fortnite, Roblox, and Minecraft have managed to generate billions of dollars of revenue through cosmetic in-game skin sales. The wide majority of Fortnite’s $2.5 Billion revenue has been attributed to cosmetic purchases in 2021. Even across First Person Shooter (FPS) games like Call of Duty, cosmetic purchases have contributed to over half the revenue for leading publisher Activision in 2017.
- Future Forecasts – DIF forecasts suggest that the electronic skins market is expected to reach up to $1.8 Billion in 2025 based on the trends witnessed this year. The ability to sell skins and products on the secondary market has been a significant contributor to the growth of the industry. Customers today are able to equate digital purchases as assets due to the rapid growth of secondary markets.
Key Factors Propelling the Growth of Gaming
There are a number of connected factors that have been contributing to the growth of the gaming segment. Here are some of the biggest factors that are expected to play a role in the growth of gaming in 2022.
2021 has been the year of widespread blockchain acceptance, with cryptocurrencies getting mainstream attention. With active movements supported by business leaders like Elon Musk, millions of people around the world become active stakeholders in cryptocurrency and blockchain technology.
The integration of the technology into gaming offers the prospects of elevating gaming experiences and creating engaging products for customers to become active stakeholders.
Leading financial corporations have signaled support for blockchain and cryptocurrency acceptance. This transition is an essential part of simplifying blockchain-based payments and allowing gamers to safely invest in their preferred digital assets. Assets like virtual real estate are gaining popularity for their rapid development and creative potential in contrast to physical properties.
The Integration of Blockchain and Gaming
The prospects of integrating blockchain technology into gaming offer the ability to assign measurable value for gamers. Blockchain integration paves the way to secondary markets and digital possessions through Non-Fungible Technology.
Studios are increasingly leveraging this trend by building games that allow complete user customization. The ability to personalize skins, wearables and other in-game assets will enhance the gaming experience and enhance the interactivity of the game’s economy.
Here are some of the biggest examples of gaming studios embracing blockchain technology across their existing products.
- Mythical Games has managed to raise a $75 Million Series B Funding Round for their blockchain-based games and launches.
- Big Time Studios has managed to raise over $22 Million to incorporate Non-Fungible Tokens (NFTs) into their existing games.
- Sandbox Metaverse has become the hottest digital property with active investments and collaborations with the biggest names in entertainment, technology, and finance.
- RTFKT Studios has managed to generate over $3.1 Million by selling virtual sneakers in the form of NFTs.
The milestones have emerged as an insight into the direction of the gaming industry moving forward in 2022. Gamer interactivity is rapidly increasing through these interactive experiences and promises the next level of experiences in 2022.
Insights From 2021 – Metaverse Elements in the Gaming Space
Across the conventional gaming space, elements of metaverse collaboration are already being witnessed in the form of collaborative visual and entertainment experiences. Key examples include visual experiences such as the Marshmellow concern in Fortnite and fashion collaborations between Valentino & Animal Crossing. Even leading fashion houses such as Gucci and Louis Vuitton have collaborated with League of Legends and Tennis Clash to offer personalized experiences within the games.
These examples signal enhanced brand collaborations in the future. Gamers can expect next-generation collaborations between their favorite brands and games to present hyper-realistic experiences within the gaming metaverse.
Games As a Distribution Channel
Top gaming companies around the world are starting to become distribution partners with luxury fashion brands to attract newer audiences. In-game wearables are allowing gamers to embody their favorite brands and personalize their gaming identities with their preferred designs. The driving force behind this expansion is to explore meaningful collaborations that provide a more involved experience for gamers.
Shaping the Future – What to Expect?
Even though the exact dimensions of the upcoming digital revolutions are still not accurately defined, it is clear that the Metaverse represents the next dimensions of gaming. By bringing together all the prized elements of the conventional gaming experience into a hyper-collaborative space, gamers can expect to get a taste of the first iterations of the gaming landscape of the future.
Research by DIF analysts points to new releases in the Metaverse by leading stakeholders in the conventional gaming industry. Collaborations are also expected between visual brands and gaming companies to offer new levels of personalization in the space. The existing commercial trends witnessed in metaverse products also signal to elevate user interest in creating unique digital experiences across the shared property. The culmination of the aforementioned factors makes 2022 one of the most highly anticipated years in the gaming industry.