Investing in Blockchain Gaming: Why VCs Are Betting Big
The high upfront costs and long lead times to produce games creates risks for game creators, meaning large developers and publishers have grown to dominate the industry, as startups seek out investors in an effort to compete. William Quigley of WAX, the Worldwide Asset eXchange that bridges the physical gaps between “collectors and traders, buyers and sellers, creators and gamers, merchants, dApp creators, and game developers” says that: “Indie games are funded the same way all other start-ups are funded… through a combination of personal savings, friends and family, angel investors and, in rare situations, venture capital.
Increasing both the number of gamers who are responsible for creating revenue, and the amount of engagement players spend on an individual game, could have major financial repercussions: Gonsalves points out that a one percent increase in the number of players spending money within games could inject an extra $6.5 billion into the industry. More from NFT and Blockchain Gaming Theme Week The crux of blockchain’s potential here is the theory that player loyalty will increase when they have more skin in the game: when their digital assets can be transferred between games or platforms, or traded on open markets, they will invest more of their hard-earned cash.
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