A thread on in-game assets:
Dota then became FtP in 2012. Fortnite's FtP game launched in 2017 — leading CS-GO and PUBG to release FtP versions in early 2019.
5 of the top 6 games are now FtP.
These assets don't improve performance. Skins, outfits, accessories, and other assets are purely cosmetic. Gamers use these as a form of expression — to look cool and signal expertise.
Plus, the game is free — why not spend a few bucks to make it more fun?
- $2.4bn in revenue, almost all from in-game assets
- 70% of users buy in-game assets
- Average spending per user = $85
1. In-game store — Users pay $ for items. Unlimited supply, but assets are only available at certain times.
2. Loot boxes — Users pay $ for random items. GCs manage probabilities that items are released (limited supply).
Some assets trade for many $100's, even $1000's, of dollars.
But even when restricted, gamers always find ways to trade for real money. P2P 'gifting' and asset swaps are common loopholes.
Steam is the most popular exchange. Gamers who trade here are charged ~15% commission per trade. Gamers can load USD to buy assets on Steam but can’t cash out to USD post trade.
These sites are more risky — users often have to share account info, opening door to scams (e.g. site steals all your assets).
First, trading is a cool feature but not a fundamental driver of gameplay. Games have disabled trading with virtually no impact on DAU.
Above all, gamers just want to have fun.
Many gamers have been persistent in their pursuit of this practice. They routinely work around (or outright defy) the rules to allow for suitable asset trading. It's clear that the demand is here to stay.
The ability to trade in-game assets for $ creates a huge incentive for hackers to exploit the centralized entities controlling asset issuance and trading. Widespread cheating undermines the integrity of the game.
GCs don’t flood the market with assets or delete user accounts. Popular 3rd party sites aren’t stealing assets or scamming people, and gamers aren’t particularly cynical of the GCs who control the gaming experience.
First, users won't adopt games just because they use crypto.
The average gamer doesn’t care about asset ownership or trading (and for those who do, these somewhat exist already). These people won't be trading off fun/UX for crypto.
The primary concern should be building a fun game that people want to play. If crypto helps, great! If not, don't use it.
In gaming, crypto is a optional feature, not the product.
Tokenized assets enable individual asset ownership (no trust assumptions or centralized honeypots), increased transparency (verifiable scarcity), and better cost/UX of trading, among other things.
FtP games are free & open virtual worlds with internal entertainment, social networking, and economic systems.
Hundreds of millions of users are already participating, and this is just the beginning...
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