Grace Ashiru
The global blockchain gaming market is projected to witness remarkable growth in the next seven years, reaching a value of $300 billion. Experts and industry analysts anticipate this surge to be fueled by the adoption of blockchain gaming by traditional gamers, as highlighted in a report from market and intelligence firm Grand View Research.
The report emphasizes the transition from traditional gaming to alternatives that offer Web3-like characteristics such as asset ownership, transparency, and gaming monetization. It predicts that the market cap will reach $301.53 billion by 2030, with a compound annual growth rate (CAGR) of 68.3% from 2023 to 2030.
As gaming metaverses gain prominence, more players are expected to shift toward these alternatives. The integration of decentralized finance (defi) elements has become an appealing aspect of the blockchain gaming industry. Players can monetize their gaming sessions and invest their earnings in defi protocols.
Nevertheless, the blockchain gaming market still has a long way to go compared to the traditional gaming market, which was valued at nearly $92 billion in 2022. Traditional AAA game companies have only recently started exploring blockchain gaming, while others with a stronger inclination toward blockchain elements have taken the lead.
Major game companies like Square Enix and Ubisoft have shown interest in blockchain. Square Enix incorporated blockchain into its business program, planning to release blockchain-related experiences, including the narrative-driven non-fungible token (NFT) experience called Symbiogenesis. Ubisoft has also added NFTs to some of its products, yielding mixed results.
Rumors suggest that Epic Titles, a popular PC gaming retailer, is set to launch around 20 blockchain titles in 2023. Some of these games have already received positive feedback during early testing, according to Steve Allison, an executive at Epic.
In Africa, the gaming industry has experienced significant growth, driven by easy access to high-speed internet and internet-enabled devices. Nigerian game developers recently launched the Aki and Paw Paw running game, the first Nollywood adaptation in gaming.
Africa’s gaming sector has gained attention and established itself as an innovative player in the global gaming ecosystem. With the projected growth of the blockchain gaming market, Africa must capitalize on the potential contributions of blockchain elements to the industry.
Binance published an article titled “How Africa Can Lead the Blockchain Gaming Revolution” in 2022, highlighting that 38% of the world’s crypto-holding gamers (aged between 21 and 38) are driving the increasing interest in trading and utilizing crypto in gaming. This age group includes many Africans who are passionate about technology, blockchain, innovation, and gaming.
The report also reveals the tremendous potential for cryptocurrency to be integrated into the gaming sector. Around 80% of gamers with blockchain wallets are willing to purchase gaming tokens using digital currencies. Africa, with an estimated 5.9 million gamers holding cryptocurrencies, could contribute significantly to the industry’s market cap, especially considering the continent’s projected youth population growth by 2050.
By developing games with blockchain elements, Africa has the opportunity to expand its market presence in the gaming industry. The region’s adaptability and embrace of emerging trends will play a crucial role in shaping its future position in the global gaming landscape.
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