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The Future of GameFi – Why are Firms Still Investing?

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During a bloody period in the crypto industry when liquidity is drying up, the developers keep on developing, and the investors keep on investing. With all of the turmoil happening around us, it can be difficult to see positive developments happening in the space, one of which is the increasing investments in and the gradual evolution of the blockchain gaming (GameFi) industry.

After the NFT craze of 2021, many metaverse projects saw a dramatic uptick in users and revenue during that time. However, as the bear market has ensued from the start of 2022, the GameFi space has also taken a hit, with many popular Play-to-Earn games reporting record low revenues, as indicated by GameFi NFT trade volumes for Axie Infinity and others.

NFT game trade volume has dropped significantly over the past year (The Block)

Although there are some real challenges to be solved, it’s clear that VCs see beyond short-term hurdles, as is indicated by the accelerated investments in the space. In Q2 of 2022 alone, $2.5 billion was invested in GameFi, indicating a huge leap compared to 2021’s aggregate investment of $4 billion – and this year is still not over!

So then the question needs to be asked – is GameFi dead, or is there true potential for blockchains to revolutionize the gaming industry and absorb at least some of the current $220 billion (and rapidly growing) gaming market?

What is GameFi?

GameFi is a portmanteau of the terms “game” and “decentralized finance,” and it refers to a financial system in which users can earn money by participating in video games. While most play-to-earn projects place emphasis on the “gaming” aspect, the most critical aspect of GameFi at its foundation is “money”. Its beauty lies in the financial opportunities provided by a highly viewed form of entertainment – gaming.

 

While GameFi has shown  a slight decline compared to its popularity earlier in the year, it was definitely the highlight of 2021, growing from 658 projects to over 1,100 projects in one year. The gamification of blockchain made the technology more approachable, appealing and acceptable for the public,

GameFi – Challenges Abound, But So Are Opportunities

Before we discuss the future prospects of GameFi, we have to acknowledge the challenges currently faced in the GameFi sector. For anyone involved in crypto, it won’t come as a surprise to find out that the public perception of GameFi is not great – hostile even. And a good amount of that negativity is not without merit.

Public Image Issues

The biggest challenge by far will be to convince traditional gamers of the underlying true value of NFTs. Not for their perceived and oft-reported highly speculative value, but for their digital scarcity, provable ownership, security and programmability that enables in-game assets to be used far beyond their main purposes. The 2021 NFT Cambrian explosion led to an immense crypto adoption and made a lot of people wealthy. But it also left some pretty big scars after the market cooled down; countless stories of project rug pulls by anonymous operators and celebrities, and NFT newcomers getting scammed are still circulating the news. 

Mainstream gamers still need to be convinced that the web3 space can tackle the challenge of building a self-sustaining game economy. One that gives the players a chance to decide whether they want to play the game for free and for fun, or whether to take it to the next level and earn an income from it.

Free-to-Play – Adjusting Course for the Better

To draw inspiration for how to structure and monetize a game, the web3 gaming industry need not look further for its most ideal strategy than the one that’s been right in front of their eyes for more than a decade – Free-to-Play. Countless titles, such as Candy Crush, Farmville, Roblox, Pokemon GO, League of Legends and many more, have proven to the world that free-to-play games can be highly lucrative without setting up paywalls for their users, sometimes even more so than paywalled games.

The F2P mechanism flips P2E on its head – instead of letting whales hoard all of the in-game assets and generate passive income, F2P games let them bring in 80% of the revenues through Pay-to-Win (P2W), which allows players to pay for in-game advantages. These P2W features are typically low-cost small advantage boosts such as resource packs, gacha characters, healing boosters and more. But in the aggregate, these small payments compound into enormous profits for the game. It works for everyone – most players get to play the game for free, big players get to accelerate their in-game success, and the game itself generates more revenue than it knows what to do with.

And this realization is one of the reasons why more and more investments are flowing into GameFi. Though it had a rocky start, the value proposition of NFT-based games is clear – every single aspect of traditional F2P games is made simpler and safer. In addition, every in-game NFT asset can be added to a highly liquid global market of all NFT assets, offering ways to trade NFTs from different games, as well as build in utility for them in order to grant unique capabilities, access rights, invites and more. And if that’s not enough, on-chain data also shows a clear trend – gaming activity currently accounts for 52% of all Unique Active Wallets (UAW), a 232% increase from last year. The numbers speak for themselves — the opportunity offered by blockchain gaming is immense, and investors are paying attention.

The Path Forward for GameFi – Keeping It Simple

In the past years, the approach taken by many blockchain game projects has been to advertise their games to crypto-natives, typically with the express aim of offering earning opportunities for players. As a result, we’ve mostly gotten games of subpar quality that have served players mainly as profit extraction vehicles with limited long-term sustainability, especially during bear markets when hype and liquidity are low.

This may not be the end of the GameFi sector just yet, however. The newer form of web3 gaming has started to practice patience, build a great, addictive game, and quietly build all of the exciting and innovative web3 features into the backend of the game without making too much fuss about it. The industry is steering away from P2E, embracing Free-to-Play with Pay-to-Win as a sustainable means of monetization. Attracting talent from traditional gaming and finally forcing large game studios to build blockchain tech into their backends are all crucial pathways to making a blockchain-based gaming future a reality.

However, these great leaps will not happen out of thin air — a lot of capital will need to be deployed over many years. Luckily, companies such as Immutable X, the NFT-gaming optimized Ethereum L2 startup, have launched a $500 million development fund to invest in GameFi. Solana Ventures has also amassed a $100 million fund to invest in GameFi and DeFi targeting South Korea. And they’re not alone. More than $10 billion is expected to flow into GameFi this year alone. 

The amount of capital invested perfectly demonstrates the potential these firms see in the upcoming, more improved version of GameFi. With this amount of capital, and GameFi’s tendency to revamp, improve and further develop its new generation of play-to-earn games, it’s a matter of when, not if, blockchain gaming will become the norm in the future.

 

Written by Boxmining

Gaming

Galaxsys Upgrades Hit Game Ninja Crash with New Features and Design

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Galaxsys gaming studio proudly announces that its runaway success Ninja Crash has been upgraded with several design features

Galaxsys, a leading innovator studio in the iGaming industry, is thrilled to announce the upgraded version of Ninja Crash, the reigning queen of its gaming portfolio. With a dynamic blend of enhanced design, new features and improved gameplay, Ninja Crash promises an even more thrilling gaming adventure.

About Ninja Crash
Ninja Crash brings the beloved social gaming favorite to the iGaming industry. Launched just last year, this fan-favorite game has swiftly become a star in leading portfolios, integrated by over 150 partners worldwide with particular popularity in Latin America. Galaxsys gaming studio has recently announced a major upgrade to this hit title.

Let’s dive into the various aspects that have undergone significant upgrades and improvements.

New Game Highlights:

Optimized Interface
Players can now enjoy an upgraded interface featuring round action buttons for intuitive navigation and enhanced odds visibility, ensuring a seamless and user-friendly experience.

Maximum Coefficient 5,000x
The game offers the potential for substantial wins with the maximum coefficient reaching an impressive 5,000x.

Combo Bonus Feature
In the game, players can earn a Combo Bonus by slicing a randomly appearing sweet, which triggers a bonus game where more sweets appear for slicing. The bonus odds are additive and are combined with the main game’s odds at the end, ensuring players benefit from the bonus session even if they lose in the main game.

Landscape Mode for Mobile
The feature is a game-changer in terms of player experience as players can enjoy an optimized gaming environment on their mobile devices.

Improved Algorithm
The game incorporates an advanced algorithm designed to captivate and retain players, providing a prolonged and enjoyable gaming experience.

Live Chat
The feature introduces real-time messaging, threaded conversations and personalized stickers, placing the players at the heart of dynamic discussions.

Auto Play Mode
A new addition to Ninja Crash that automatically initiates the next round after each cashout or loss, allowing players to relax and enjoy the continuous flow of excitement.

Freezing Bonus Feature
When the Freezing Bonus appears, players are guaranteed a win as it fixes their current winnings.

With the latest updates and features, Ninja Crash is now even more appealing to Galaxsys partners, ensuring an elevated gaming experience for their players. These enhancements are designed to increase enjoyment, engagement and rewards.

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Gaming

PopOk Gaming’s new Crash Game release Crash Extreme

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Introducing PopOk Gaming’s new crash game ‘Crash Extreme’ – An Epic Adventure Beyond the Skies!

While playing PopOk Gaming’s latest release “Crash Extreme” the players will embark on an exhilarating journey where their fearless moto rider will defy gravity, soaring off cliffs, reaching unprecedented heights, and even venturing into space!

As the multiplier climbs, the excitement intensifies, offering a breathtaking ride to astronomical heights.

Let the players prepare for an extreme adventure where crashing takes  beyond the skies in ‘Crash Extreme’!

Here’s how it works:

-Place the bet

-Watch the multiplier increase from 1x upwards

-Cash out anytime to multiply the winnings

With the chance to win up to x10,000, ‘Crash Extreme’ promises non-stop excitement and adrenaline-pumping action.

Available in various categories including Casino Games, Skill Games, Fast Games, and more, ‘Crash Extreme’ is set to redefine the gaming landscape. Get ready for the ultimate adventure that takes you beyond the skies!

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Gaming

The Gamemasters Summit: Stellar Speaker Lineup Announced With 30+ Mobile Games Thought Leaders

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The Gamemasters Summit, a pioneering digital conference powered by Kwalee and supported by media partner PocketGamer.biz and sponsors AppsFlyer and Embrace, has announced its full speaker lineup. The event will bring together developers, publishers, platforms, agencies, suppliers and talent in mobile games alongside students and graduates.

The one-day online event invites delegates to engage with panel discussions and keynote sessions led by some of the sector’s most influential figures. With both an Expert Track and Emerging Track, The Gamemasters Summit offers a range of sessions and networking opportunities for people at all stages of their career in mobile games, from entry level to C-Suite.

The Gamemasters Summit has a ‘no selling, no BS, opinions welcome’ mandate – so the content and discussion will be original, interesting and useful for all attendees.

A Lineup of Over 30 World Class Speakers and Insightful Panels

The Gamemasters Summit is proud to present an impressive roster of speakers, including industry leaders and innovators who will share their knowledge, experiences and visions for the future of mobile gaming. Highlights include:

Javier Castro, Head of EMEA AppDev Gaming at Google and John Wright, VP of Mobile Publishing at Kwalee, who will join forces in the keynote panel to explore the latest trends and challenges facing the mobile games industry in 2024.
Michail Katkoff, Founder of Deconstructor of Fun, and Adam Smart, Director of Product Gaming at AppsFlyer, will also join the keynote to provide their expert analysis on game trends and market strategy, shedding light on the keys to success in the rapidly evolving mobile games market.
Gabriel Stürmer, CEO of Clap Clap Games, will share their journey as a games studio, crafting hit games in collaboration with Kwalee, highlighting the strategies that led to their widespread success.
Allison Bilas, COO at GameAnalytics, will contribute her profound analytics and big data knowledge to the “Play By Numbers: Navigating Data Science and AI in Mobile Gaming” panel. Her experience with major game studios and tech providers underscores the critical role of data in the success of mobile games.
Vera Karpova, Product Manager at dev-to-dev, Chris Lefebvre, Chief Strategy Officer at ByteBrew and Eberhard Dürrschmid, CEO of Golden Whale Productions GmbH will also join the “Play By Numbers” panel, adding their insights on product analytics and the integration of enterprise-level analytics to support mobile game development.
Nikita Lord, Graduate Partnership Manager at Grads in Games – Aardvark Swift, will speak in the “Forging Your Career in Gaming” session. Nikita’s experience in bridging gaps between industry and academia is crucial for aspiring industry professionals and game developers looking to enter the games industry successfully.
Ben Hopkins, Creative Director at VCCP, and Justin Nield, Creative Solutions Lead at Kayzen, will explore the “Crafting Impact: Mastering the Ad Creative Lifecycle” session. Their combined expertise provides a comprehensive view of developing and optimising creative strategies for impactful advertising in the games industry and this panel will be chaired by Gavin McNicholl, Creative Director at Kwalee.
Harry Lang, VP of Marketing at Kwalee, brings over two decades of expertise to the Gamemasters Summit. Harry will kick off the event with an introduction to The Summit and its agenda, setting the stage for a day of insightful discussion and networking. Furthermore, his session “Beyond the Code: The A to Z of Marketing a Hit Mobile Game” promises to unravel the complexities of marketing in the mobile games industry.
William Cox, Head of Mobile Publishing at Kwalee, will moderate “Game Publishing Unveiled: Strategies for Emerging Developers.” This panel aims to shed light on the intricacies of game publishing, offering emerging developers insights into how they can make their games stand out. Will’s extensive experience in game publishing at Kwalee, Sega and Ubisoft will guide the conversation, providing actionable advice for attendees.
Simon Platt, VP of Kwalee’s Leamington Studio, has been at the forefront of designing and producing hit mobile games, leading Kwalee’s in-house mobile games to over 1 billion downloads. Simon will chair the “Crafting Hits: The Blueprint Unveiled” session, designed for emerging game developers. This discussion will dive into the creative and strategic processes behind successful game development, from ideation to execution.
Eric Futoran, CEO of Embrace and previously a co-founder of Scopely, will discuss how an obsession with delivering flawless player experiences is crucial to any game’s success, and why he is dedicated to helping teams resolve complex app issues quickly.

These speakers, among many others, will provide a comprehensive exploration of the tools, tactics, and innovations shaping the future of mobile game development and publishing. The Gamemasters Summit is an unparalleled opportunity to gain insights from the leading minds in the industry, offering strategic learning, career development, and exclusive networking opportunities.

Engaging Sessions Designed for Every Level of Expertise

The Gamemasters Summit features two distinct tracks catering to both seasoned professionals and newcomers to the industry so there’s something for everyone:

The Expert Track offers advanced insights into topics such as data science, AI in mobile gaming, and monetisation strategies. Sessions include “Play By Numbers: Navigating Data Science and AI in Mobile Gaming,” where panellists like Allison Bilas, COO of GameAnalytics, and Chris Lefebvre, Chief Strategy Officer at ByteBrew, will discuss the integration of data analytics and artificial intelligence in game development and marketing.
The Emerging Track focuses on foundational knowledge and career development, with sessions such as “Crafting Hits: The Blueprint Unveiled” by Simon Platt, Head of Studio (Hybrid) at Kwalee. Attendees will gain insights into the creative process behind developing successful mobile games, from concept ideation to execution.

Join the Leading Innovators In Mobile Gaming

The Gamemasters Summit is not only an event for learning and inspiration but also a prime networking opportunity for professionals looking to connect with peers and industry leaders. With discussions on the latest trends, innovations, and strategies, attendees will be better equipped to navigate the future of mobile gaming.

Join the Gamemasters Summit to connect with these and other industry leaders, gain valuable insights, and explore the latest trends and strategies in the mobile games industry – all this and more at zero cost!

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