By Igor Plusa, CMO and co-founder of Game Lounge
In 2021, the metaverse has become an ever-present presence in our locked-down lives, facilitating virtual interactions during pandemic hell. So much so that Metaverse entered the Collins Dictionary shortlist to become the Word of the Year for 2021. According to a Bloomberg report, the Metaverse market was worth $479 billion in 2020 with an annual growth rate of 13 %. Of this staggering market size, the video game industry has contributed $275 billion and will reach $413 billion in 2024.
Neal Stephenson who first conceptualized the metaverse in his famous science fiction novel, Snowfall, raised questions about the spectacular size of the market. Although Stephenson was talking about the implications of Facebook entering the metaverse market, his concerns about revenue generation are all-encompassing. He asks, “What is the business model that allows people to make money? »
If we look deeply into Stephenson’s question, two important things arise. First, the metaverse in its current form operates on a top-down approach with little input from its most active participants. In an owner-take-all structure, users have very little to contribute and gain. Second, without the participation of a large community of users, market and revenue growth is affected. It fails to leverage the individual participants of the productivity metaverse, making them passive recipients rather than active contributors.
However, the scenario is gradually changing with the slow but steady growth of real estate projects in the metaverse. Rather than simply entering the virtual world to play games and then leaving, users explore the possibilities of creating gaming landscapes. Players build these gaming spaces from scratch, creating their own pad to socialize with. other players while playing games.
In 2021, the nascent real estate sector of the metaverse saw $500 million in total sales. We can expect the industry to grow further in 2022 with more gamers deciding to design their own gaming arenas. But the question is, why do gamers want to design their own spaces? Is it beneficial for the industry? The following sections detail each of these issues respectively.
Customize the metaverse
For now, gamers have to make do with the gaming environment that big companies design for them. Games are a social activity through which players form lasting bonds with each other. But when it happens in impersonal, emotionless spaces, it takes the fun and the essence of entertainment out of these games.
After all, game arcades in public living rooms revolutionized gaming because they helped forge strong communities around them. Friends and family would gather on weekends and during leisure hours to socialize and play games. The social aspect of gaming was lost with company-made video games where everyone was ultimately on their own, even in multiplayer environments.
The metaverse offers a new opportunity to reintroduce the social aspect into the online gaming experience. Instead of passively participating in these metaverse gaming ecosystems, users actively develop and design them based on their preferences. It’s like users create their own personalized game rooms where they socialize with their friends and play games.
Once users start customizing the metaverse to their liking, the options are virtually limitless. They can recreate an Irish pub, a German Biergarten, a Vegas-style casino or a classic wild western saloon with mahogany tables and marble tops. Then they can invite their friends to hang out in the metaverse and play with them.
However, most metaverse games, especially those running on blockchain technology, do not provide an immersive, high-fidelity gaming experience for their players, unlike mainstream mainstream games. If blockchain-based metaverse gaming is to succeed, it must focus on providing a AAA gaming experience. So besides customization, gaming rigs should never compromise on cutting-edge graphics. For example, Game Lounge provides a platform to customize the metaverse with high-end graphics using Unreal Engine 5.
Personalization diversifies monetization structures
When users start customizing a metaverse with custom features, it opens up new avenues for revenue generation. Unlike in-house designed games, community participation rewards the various stakeholders in the metaverse marketplace.
For starters, NFTs are the building blocks of the metaverse real estate industry through which users design their personalized spaces. A plot of land, virtual furniture, game boards, tables and everything else is practically an NFT on the blockchain network. Thus, customization directly benefits users who deal with NFT trading. For example, they can buy an NFT chair for $50 and resell it for $100 in secondary markets.
This type of “flip” trading will encourage artists from the gaming community to come forward and design these NFTs. Additionally, customization helps creative professionals bring their digital design skills to the gaming ecosystem. Without centralized intermediaries taking a cut of their profits, artists benefit directly from the new economic structure. For each sale, the metaverse platform takes a small percentage and the rest goes to the designer for their contributions.
Metaverse real estate game projects also provide advertising opportunities to all its users. As with any real stadium game, game arena owners may have designated advertising spaces to generate revenue. Advertisements can take the form of moving video screens or static banners on the wall or stands. Owners of virtual goods should of course be careful not to harm the user experience with too many ads. But the right amount of ad exposure will generate stable passive income for them.
Finally, customization will lead to different types of Play-to-Earn (P2E) facilities on these metaverse platforms. Instead of having just one type, property owners can experiment with game formats. For one thing, they can fit different things into their gaming stations like a pool table, chess board, or arcade machines. On the other hand, owners can introduce tournaments and league matches for players to earn more rewards than standard P2E games. And overall, with the metaverse market set to become an $800 billion industry by 2030, custom metaverse gaming spaces will pave the way for realizing its market potential.
About the Author:
Igor Plusa is the CMO and co-founder of Game Lounge where you can create your own game lounge, customize it, impress your friends and relax in the metaverse in style. Follow Game Lounge on Twitter and join the discussion on Telegram.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.