Have you ever wanted something in a video game so bad that you were willing to pay for it?
👉 If yes, then you’ve probably come across in-game purchases.
👉 If not, trust that millions have.
This is a BILLION dollar industry. 🤯
Let’s explore the phenomenon.
🔹 The Origins of In-Game Purchases:
In-game purchases originate from the free-to-play model, first used by South Korean game developers in the early 2000s.
The idea was to make games free but offer extra content or upgrades for an additional fee.
It was in 2009 that this model became mainstream when Apple allowed developers to include in-app purchases in their apps for iOS devices.
Nowadays, most mobile games use the free-to-play model as their primary source of revenue.
But the bigger question is…
🔹 Why Do People Buy Things Within Video Games?
One of the main reasons is convenience.
Instead of waiting for unlocks or advancing levels through gameplay, you can purchase items quickly and easily.
The second reason is status.
Many players want to FLEX within a game by buying exclusive items or skins that increase their character’s power or attractiveness.
The popular free-to-play game, Fortnite, made $5.8 Billion in 2021. Furthermore, the market value of in-game purchases is projected to surpass $74.4 billion in 2025, according to Statistica.
People buy skins for the same reason they buy Rolex watches.
But here’s the thing…
Unlike a Rolex watch, you don’t own any of the assets you purchase within these games.
Sure, you can use them within the game.
But if the game disappears, so do your assets.
Also, If you lose interest in the game or need 💰, you can’t resell them.
Kind of a bummer.
But the times they are a-changin.
🔹 Web3 Gaming:
Blockchain technology allows gamers to own in-game assets.
In-game assets become NFTs.
The blockchain registers your wallet address as the owner.
This allows you to resell the asset if you’re so inclined.
Decentralized ownership is the promise of Web3, and it’ll drastically affect the gaming industry.
Fortnite’s creator, Epic Games, has already launched an NFT game called Blankos Block Party. It’s the first blockchain-based game released on the Epic Games store.
This is only the beginning.
We’ll see many blockchain games enter the scene in 2023 and beyond.