NFT Games: Its Meaning, Role And Benefits

NFT in games is a market that hasn't been used much yet. Still, it made $4.5 billion in 2021, which was almost 20% of all NFT sales the year before. Players seem to like how the play to nft game development makes them feel like they own their favorite games and have a say in how they play. And as technology improves, it looks like more game makers will add NFTs.

Like the case of Ghost Recon Breakpoint, which became well-known. As the first game from a major publisher to have an NFT feature, it should have made a big splash. Instead, it was heavily criticized and put down by users. Most likely, the main reason for the backlash was that the company couldn't properly integrate an NFT component.

So, to give you an accurate picture, we'll give you some examples and talk about the benefits of adding NFT to your new or existing game projects.

How does NFT in games strengthen the idea of a "play-to-earn" concept?

Even though NFT is still growing slowly in the gaming industry, it is seen as one of the biggest trends for 2022. A study by Global Market Estimates says that the worldwide NFT market will grow by 185% by 2026. Gamers will, of course, help this growth happen.

People play regular games for fun, but with blockchain games, they can also make real money. NFT has become a key part of play-to-earn (P2E) game development, where players earn digital assets with real value that they can rent out or sell on NFT marketplaces for real money or cryptocurrency. Most of the time, in-game NFTs represent weapons, armor, virtual real estate, and other items that can be found in video games.

In the same way that wearing expensive things makes you more popular in real life, having an NFT can make you more popular in the digital world. Users buy NFTs to make their game experience unique and to change the way their character looks to stand out. And spend a lot of money on it. About $54 billion was spent on extra game content by gamers in 2020.

But enough about that. Let's look at some of the most impressive uses of NFT in games:

Axie Infinity

It is one of the most well-known NFT projects with a complex economic ecosystem. It is a metaverse that was inspired by Pokemon. Players can get tokens, which are the game's currency, by breeding creatures called Axies to fight with.

Illuvium 

Illuvium is a multiplayer NFT game in 3D. Illuvium is the first high-end game to use Ethereum (ETH). Its main goal is to find and catch Illuvials, which look like gods. On June 5, 2022, Illuvium did sell digital land plots for more than $72 million.

Tamadoge 

A fun mass-market game. Users can play the Tamagotchi game from the early 2000s all over again, but this time they can raise NFT dogs and make money as a bonus. The move-to-earn feature encourages people to walk their dogs so they can get paid for it. At the time this article was written, Tamadoge's presale phase had already brought in $11.5 million.

All of these numbers look very good, but let's not jump to conclusions until we know more about how NFT affects the key gaming KPIs.

Why do companies put money into making NFT Games?

NFT can have the best effects on major gaming KPIs. Obviously, if it's added in the right way. Check it out yourself.

ROI

People who play crypto games see them as fun and a way to make money, which is a great reason to join. My Crypto Heroes, for example, has one of the highest returns on investment (ROI) in the gaming industry, at up to 20% per month. Not bad at all.

Active users

The number of people who use your game will grow in line with how popular NFT games are. In January 2022, the NFT metaverse Alien Worlds had 1,160,000 players, which was more than the top two blockchain games, Splinterlands and Galaxy Blocks, put together.

Average revenue per user (ARPU)

As you may know, this is one of the most important metrics for making money in game analytics, and investors use it to figure out how well their investments are doing.

ARPU is the average amount of money made by an active user over a certain amount of time. As a way to increase ARPU, game developers may also charge a fee when players want to sell or trade their NFTs. This is in addition to offering digital goods as game inventory. On the mobile P2E platform Arc8, for example, players have to pay an entry fee to take part in tournaments and buy games.

Average check

This KPI is like the average revenue per user (ARPU), but it measures the average revenue per transaction. To find out how much each check is worth, divide your total income by the number of transactions. As the prices of digital NFT assets go up by a factor of ten, so does the average amount of money game developers make from transaction fees.

Uses at the same time (CCU)

It's the total number of people who can play the game at once. Many people are excited for the next NFT game to come out. For example, 150,000 people were playing the e-sports crypto game Thetan Arena at the same time. This is a new record for the number of NFT games on the market.

Customer lifetime value (CLT)

This metric shows how much money a business makes from a single user over the course of their whole time playing the game. This KPI shows how much your game is worth on the market from a business point of view. When gamification and NFT are used together, companies get a new way to appeal to both current and potential customers and get them to keep using your product. In fact, almost 34% of people are interested in buying a non-game-playable item for a video game.

Rate of customer retention

This game metric shows how many players stay with a game over time. The DappRadar report says that the average customer retention rate in NFT games is 75%, which we think is pretty good. NFTs have what it takes to give customers a reason to stick with you and even get them to promote your gaming solutions. The plan works because the value of the NFT goes up when the company does well. It works out well for everyone.

But the fact that NFT is good for the major game metrics isn't the only good thing about it. Read on to find out how NFT helps with making P2E games.

How does NFT benefit P2E Game Development?

The financial structure of NFT games is a little bit more complex than that of regular games. Money flows to the game creators as well as to the players and between players. The following things help make this possible.

Players should be a part of the game's economy

Most regular games that let you buy things inside the game right now work like one-way streets. The only thing that players can do with content is consume it. This means that most of the money made from regular games goes straight to the people who made them. So it makes sense that players will be hesitant to spend money on certain items.

But in NFT gaming solutions, tokenization lets players trade assets with each other in-game, so players could:

• 
  

• Complete tasks and get cryptocurrency as a reward.

• Sell their NFT properties (rare products, skins, weapons, etc.)

• Rent out their online property

This changes the focus from "buying" to "investing" because players are more involved in the NFT game economy and trust each other because of it. Also, gamers love to own at least a small part of something important and limited in a game they like.

Player-generated marketing

Players are free to trade in-game items on third-party marketplaces, which helps spread the word about the game. This is good for both the players, who can make their money go further, and the game designers, who can get new players and advertising with little work.

Turnover

An NFT game makes it easier for more in-game items to change hands, which makes users more interested and happy. This is possible because users know they will get back some or all of what they put in at first.

Also, if the in-game economy is well thought out, players will be able to keep all of their original in-game purchases while making more money, for example by only letting goods with certain features be traded.

NFT asset rentals 

The ERC 4907 standard makes it easier to rent assets, which makes NFT rental another way to make money in the game. This makes it easier for people to get NFT assets.

This token standard's automated "Expires" feature controls the rights of lenders and borrowers, manages the temporary roles of users, and makes NFT rental more efficient.

NFT as a stand-alone asset in-game

Users can access and collect digital items they bought at any time, no matter what game they are playing. Because of how the blockchain works, the history of the person who owns a digital asset can never be changed or erased.

Even if a game is no longer available, the blockchain ledger keeps track of who owns it. The user is safe because they can always prove they own the virtual goods they got in the game and can still trade or sell their NFTs.

Conclusion

NFT in games is a great feature that regular games don't have, like letting players earn money in-game or making it easier for game developers to get their money back. NFT assets are also very safe because they are based on blockchain development technology. It also makes sure that digital assets will still be useful in the future, even if the game is no longer available.