In 2016, the total income of the gaming industry has reached $100 billion. At the same time, in-game item market turnover is currently estimated at $4 billion, and this amount is generated by 100 million players (out of more than two billion existing gamers). How did it happen that the better part of gaming society was excluded from the in-game economy? The main reason for this is that today, in-game trading works for only a couple of games. And that will be true until the DMarket platform launches in November 2017.
The core issue that locks in-game item market development is technology. During every other trade, hundreds of thousands of databases from every game and every publisher have to be synchronized with each other. DMarket resolved this with blockchain technology.
By giving an opportunity to buy and sell in-game assets to all gamers globally, DMarket creates a new in-game item economy worth more than $450 billion.
HOW DMARKET WORKS
WHY YOUR GAMING STUDIO SHOULD JOIN THE PLATFORM
Every game developer who joins DMarket gets the unique ready-to-use DMarket API solution. This will help to increase the value of in-game items (it could be skins, weapon, or whatever) and create an additional source of monetization. DMarket intends to adjust its libraries to the most popular engines, which will allow DMarket to integrate with the majority of games on the market. Later, the customized engines will be added.
DMarket developed a special program for game developers and publishers. Up to 18% of the gains of the two DMarket token sales phases will be invested into the development and creation of profitable and attractive business models for in-game item turnover on DMarket.
3.Additional marketing channel
Dmarket’s marketing strategy includes not only a promotion of the market itself but also its partners. Each and every event or communication on DMarket will benefit its partners as well. Moreover, when a player joins the market, he can buy and sell not only familiar game items but products from other publishers as well. So it is natural that the intensity of switches and first trials will rise noticeably.
4.Total income increase
The price policy will be established by the game developers who created the products, and they will get the bigger part of the exchange fee for their intellectual property—for the in-game items. What is more, game developers can build their own in-game economy by creating desirable rare items to motivate their customers to get involved in the mining-and-trading rush.
5.Lifetime value increase
When a gamer gets an opportunity to monetize his gains, the process of hunting becomes more valuable, and therefore he spends more time in the game. It could be a new beginning of in-game item mining rushes.
6.Security and company image
Blockchain and smart contracts technologies allow DMarket to prevent any kind of fraud, whether it is a database or account hack. The history of each subject and information about owners will be kept in the blockchain, so the reputation of the game developer or publisher will be strongly protected.
Due to the ability to monetize various in-game items (hard-to-reach, rare, or collectable), console and computer single-player and multi-player games will become profitable. It will be possible to create a “longevity” parameter for each item officially sold in the game, as well as to open a market for the sale of already used items. This will increase the turnover of new things and the income from the sale of second-hand goods without trimming major sales. Another source of income—memorabilia earned in championships or created in cooperation with designers or previously owned by well-known players. This will cause an additional demand for such items from users that are collecting rare items or from fans of a celebrity player.
WHO IS ALREADY IN?
DMarket is already supported by prominent game development studios such as 4A Games (Metro 2033, Metro: Last Light), GSC Game World (S.T.A.L.K.E.R, Cossacks series), and Tatem Games (Carnivores, Vivisector, Cryostasis). Currently, the platform is negotiating with other leading studios.
DMarket doesn’t keep its API secret and shares it with entrepreneurs and businesses.The game assets represented on DMarket can be integrated into popular online stores and used as payment for goods or services, as a loan, or even as an exchange instrument. This approach comes from the company vision.
“I believe that by 2020 when you go to eBay and enter ‘buy gloves,’ you will see ten knitted and leather items and dozens of virtual game items next to them,” Volodymyr Panchenko, the DMarket CEO and founder, claims.
Therefore, joining DMarket is a good opportunity for a game studio to become a member of the future game economy with a potential turnover estimated to be $450 billion.
This post is part of our contributor series. It is written and published independently of TNW.