NFTs Pay Off for Game Developers

Mainstream videogame developers are warming up to non-fungible tokens, better known as NFTs. Motivated by the extraordinary success of titles like Axie Infinity and Gods Unchained, many are searching for ways to deploy this blockchain-based technology in their creations. Beyond providing a new outlet for creativity, NFT games offer compelling financial incentives.

NFT games represent a significant departure from the mainstream experience. Because these tokens are cryptographically unique, they enable ownership of items bought or earned during play. Turning virtual goods into non-fungible tokens lets gamers trade and resell them, making them potentially valuable real-world assets.

While this has obvious benefits for players, it also creates opportunity for developers. The innovative use of NFTs can attract more users to their platforms — people lured by the prospect of making money from playing games. And because the market is still nascent, the competition to create the next big hit is wide open. NFTs also unlock new sources of revenue for developers. In addition to earning income from the sale of game items, developers can receive royalties from subsequent transactions involving the items, such as when players sell their assets or move them to their digital wallets.

NFTs are already paying off, generating $5.17 billion in-game sales in 2021, or about 29 percent of the total NFT trading volume, according to market tracker Nonfungible.com. One game dominated: Axie Infinity. The Pokemon-style monster-battling title became the first game to surpass $1 billion in NFT sales.NFT games also make money with entrance fees and commissions on the purchase of native tokens used to buy and trade items. When more players buy the token, its value goes up, benefiting both ‌players and developers. Axie’s AXS cryptocurrency gained 18,000% over 2021.

Then there is the potential to attract major investment and/or takeover interest. Already 2021 saw a dramatic increase in the funding of blockchain games. According to DappRadar, an estimated $4 billion in venture capital poured into blockchain gaming. Acquisitions in the gaming industry also hit a high last year, driven in part by the popularity of NFTs.Money aside, getting experience with NFTs is a smart career move. Technology experts say the ability to buy and sell tokenized digital goods will be key to the metaverse, a virtual realm where people will work, play and shop in the next version of the Web.

Given the advantages, one might wonder why more developers haven’t embraced NFT gaming. One oft-cited reason is leading development engines like Unreal and Unity aren’t compatible with blockchain. Yet this is no longer an insurmountable barrier. Unreal and Unity developers can now connect to the blockchain within minutes on Ajuna’s decentralized platform. Ajuna Network also provides all the tools needed to build tokenized virtual goods into games, without compromising on gameplay.

Want to enrich your game with NFTs? Click here to discover how.