The video game industry is expected to take in over $203 billion from buyers this year. The industry would thus achieve an increase of 5.4% compared to the previous year and celebrate the financially most successful year of its existence.
The figures from the analysts at Newzoo are of course «only» forecasts for the time being. According to Newzoo, however, the growth of the gaming industry is far from over. For the year 2024, for example, around 224 billion US dollars in sales are expected. The combination of full-price games and subscription concepts should give players more options to play and pay accordingly. For comparison, the automotive industry is worth around 410 billion US dollars.
It’s been a major roller coaster ride for the burgeoning blockchain gaming industry in the second quarter of 2022. Both the war in Ukraine and security incidents linked to the recent Ronin Bridge hack significantly hampered growth. Despite all this, the market was able to grow by almost 2,000% compared to the previous year according to the market report by DappRadar and the Blockchain Gaming Alliance (BGA).
In the second quarter of 2022, the blockchain gaming industry managed to garner a total investment of $2.5 billion. Compared to the previous year, in which a total of 4 billion dollars in funding was collected, these are strong numbers. The second quarter of 2022 thus confirms the figures from the first quarter. 2.5 billion dollars were also invested in this and should the figures repeat themselves in the next two quarters, a total of 10 billion dollars would be invested in 2022. This corresponds to a growth of 150%. The first two quarters already exceed the full year 2021 by 33 percent.
Active players have also risen sharply since 2021. As of March 2022, 1.22 million people were playing blockchain games. If you relate this number to the first quarter of 2021, there is an increase of over 2,000%. In the second quarter, these figures could even be increased by almost 3%.
The token prices of almost all play-2-earn games have collapsed in 2022. The crises of the Ukraine war and the bear market also hit the blockchain gaming industry extremely hard. Fortunately, the number of active players remained constant, which could speak for sustainable growth. The 29 percent decline in NFT revenue since Q1 was barely noticeable in the gaming industry. Gaming NFTs saw revenue growth of 19% year over year. The prospects for the further course of the year are therefore not bad. Investments increased significantly compared to 2021, which is why the signs are bullish. The community demands added value, for example in the storyline and playability of the game, but at the same time there is a demand for a stable game economy; the generated and earned tokens should not lose value over the term. If this succeeds, the industry could continue to grow and soon break new records again.
At Crypto-Nights, we have focused our attention on the community’s needs. We have developed a play to earn that is based on player skill and capacity. For the economic model, we used various deflationary models and created a digital currency for transactions in the video game to save users gas fees. This digital currency «DAM» is then exchanged in our token EES and traded via our own P2P platform. Supply and demand will regulate the price, the issue of EES will be calculated according to an algorithm based on issue and burning within the whole environment. There was no ICO, each token should be generated and traded by the user. The same applies to the items that can be converted into NFTs depending on the level. The token EES will be backed up by a physical and certificated gold and silver portfolio in Switzerland managed by Auvesta Edelmetalle AG.
Another highlight is our focus on education. Our video game is mainly aimed at emerging countries, so it is not only important for these people to generate an additional income but also to learn something. During our first pivot, we realized that the quickest way to learn about blockchain and Web 3.0 is through play-to-earn models. Via so-called cryptogames, the user immediately comes up with a wallet, peer2peer, NFTs, tokens & co. The player experiences knowledge, education and contact with the community by gaming.
Our game is based on a metaverse, in which users can use their game strategy and, for example, go to war in clans, do agriculture and forestry or devote themselves to trade.
Everyone is free to use their own economic model and put it to the test. Well-known personalities from economics and politics will appear and provide our users with knowledge on these topics, so that everyone in the game will learn about capitalism, socialism, communism, and social market economy, all during an exciting strategy game while you generate additional income. We focus on playability and sustainable economic systems. Fun, knowledge, and earnings. This combination could make Underworld Capitalist by Crypto-Nights one of the most successful blockchain projects for the coming year.
Our startup Crypto-Nights will launch their first blockchain video game, Underworld Capitalist, on October 27th, 2022. Waiting list and further details available at https://discord.gg/YYMkgs49.
Sebastian KHL Berquet | CFO & Founder Crypto Nights Holding Limited