Why Game Developers Need To Be At The Forefront of In-Game NFTs
There are more games on the market than ever before. For the past couple of years, game developers could rely on data collected from their games to get users, track success, retain those users, and monetize. While this sort of data collection greatly benefited developers, for a user it meant that in order to have access to an experience, they had to agree to terms that would allow for the storage and use of their data.
With things like IDFA, a user’s activity through their phone could track their activity on a website, and games could be marketed directly to those users. This led to a heavy focus on a few types of games that yielded high monetization rates for the developer. But, as conversations around privacy concerns for users have come to the forefront of discussions, many companies are adjusting terms in favor of the users.
With the arrival of iOS14.5, two significant changes have been implemented that have had an impact on game developers. The first is the requirement for apps to get explicit permission from users to track them across apps and websites owned by other companies. Many users are opting out of this. The second change is the introduction of App Tracking Transparency (ATT), which will provide users with more information about the data that is being collected about them. This has broken the acquisition funnel that game developers had become accustomed to. And as a result, mobile game developers have already lost significant revenue.
Now, more than ever, game developers are looking for new ways to have their games stand out and retain users. How can they accomplish this? Innovation is key. Innovation in the games they are creating and innovation in enhancing the user experience.
With the shift in the acquisition funnel, game developers must utilize creativity to make games that users want to return to. Once a game developer is providing such a fun experience that players spend hours in, what are the ways the developer can further enhance this experience?
One way is by introducing in-game NFTs. In-game NFTs can be used for several things. They can be used as game items, rewards, or even experiences. NFTs allow for a player to have an actual item of value for their time and effort in a game. This creates an ability for developers to reward vibrant members of their games by giving utility back to those users. It allows for a conversation between the developers and the community.
Gamers are already familiar and comfortable with the concept of digital assets in games and have been spending real money on them for years. In 2019, the global gaming market was valued at $120 billion. Of that, $24.0 billion was spent on in-game microtransactions.
NFTs will allow for developers and players to be on the same playing field. It gives developers a way to enhance the game experience for their players while also generating revenue. And now, players get to share in that revenue as well. As game developers move away from traditional data-driven models, they need to be at the forefront of in-game NFTs to stay ahead of the curve.