Forte's $725 million raise - Blockchain Impacts Gaming & eSports
in Crypto News
Following in the footsteps of other NFT gaming startups such as Animoca Brands, Mythical Games and Dapper Labs, Forte has received $725 million for its back end blockchain gaming platform, which will allow game developers to construct compliant and interoperable blockchain games.
However, this is just the beginning, as investors are rushing to invest in Blockchain Gaming Projects.
Major sports organizations worldwide have also suddenly realized the potential of Ethereum blockchain technology to improve fan connection, streamline operations, and generate new revenue streams.
Gaming content monetization
According to Grand View Research, eSports and variety gaming have already evolved into large sectors that were worth US$1.1 billion and US$151.06 million in 2019.
Only a few years ago, gaming skill was worthy of recognition only inside the player’s respective gaming communities.
Now, NFTs have repurposed gaming for new audiences in the form of exclusive tournament videos, highlights, footage, and documentaries. This opens a new market opportunity for esports players and enthusiasts, and by commodifying gaming content as NFTs, also opens up incentives to traders and investors who may not necessarily be gamers themselves.
The establishment of new revenue streams for eSports and video gaming industries
While the tokenization of in-game assets allows players to earn whilst they play, it also opens up new income streams for eSports and gaming businesses by allowing them to formalize the item resale market and fulfill part of the demand for virtual goods provided by gray markets.
According to industry estimates, the market for secondhand virtual goods is worth over $50 billion. While the legal status of gray markets is arguable, a Rice University study published in 2021 concluded that gray markets had a detrimental influence on both product pricing and quality as well as producer profitability.
Resale royalties provide new revenue streams for eSports and gaming firms, which can make extra cash in perpetuity from the selling of their NFTs, in addition to the revenue from the initial sale of the assets to players.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.