NFT Gaming: The Trillion Dollar Future

Edition 5: By Josh Bobrowsky

“Success is not final, failure is not fatal, it’s the courage to continue that counts” - Winston Churchill

$190 billion per year is spent on mobile gaming

NFT gaming will be a trillion dollar industry. We can already see an insane demand for hopes of anything that even looks like a game.

The two easiest examples to see are Axie Infinity & Otherside/Ape Coin. Both coins will serve as in game currency as one of the primary driving factors of value.

Ape Coin: $1.8 billion

Axie Coin Market Cap: $1 billion

Zero Monthly Active Users

While Axie has roughly 600,000 people playing their game per month, Otherside, by Yuga Labs, has zero monthly users because they don’t have a game yet.

Yuga was able to sell over $500 million dollars in primary and secondary sales for Otherside land to users that have not only never played the game, but also can’t identify what the game is or how it will scale players.

Otherside Facts

• We don’t know what the game is

• We don’t know how the game is played beyond an MMORP (Live Demo was played)

• We don’t know what the prominent characters in the story (Kodas) do

• We don’t know when the game will be playable

• We don’t know use, function, or how the land or land assets work

• Yuga just hired a new chief gaming officer last week

This is Bullish

The fact that over $500 million was spent on an unknown game that isn’t playable by a NFT company known for NFTs, not gaming, is wildly bullish.

There is a huge market and a massive growing demand. If $500 million was spent by about 40,000 people imagine the amount of capital that will be spent on gaming with digital assets once 40 million people get on board.

Fortnite Game Travis Scott Concert 40 Million Players

Enter the concert held by Travis Scott on Fortnight, an interactive playable concert, also to my knowledge the largest concert ever. This concert took place in 2020 on the video game Fortnite and was a playable concert/video game experience.

Not Ready Player One

The near future of gaming will not likely be an immersive metaverses but may instead look more like a cross between turn based strategy games and PVP style of poker.

In 20 years we may be ready player one, but today we are closer to Candy Crush than a complete metaverse experience.

I believe Player vs Player risk based strategy games will be the near future of almost all gaming, we already see massive demand in poker, daily fantasy sports, stock trading that is gamified and the game of trading NFTs.

Total Addressable Market (TAM)

No this is not a pitch deck anon, this is how big gaming could be. Assume the number of people who potentially could be willing to buy NFT games is about the same as the number of people who are willing to buy iPhones, roughly 1 billion iPhone users and 2.9 billion smart phone holders.

The current business model resulting in an annual spend on mobile games is $190 billion. But, there is no ownership or resale of the digital items purchased, once you spend the money it is gone.

NFT gaming will change all of this, if you buy an item in game you have ownership rights much like buying something in the real world. Also like the real world, some items will be depreciating assets while others may increase in value depending on external factors.

It is not hard to imagine the TAM of gaming growing 10x once people actually own the items they are spending billions of dollars to buy.

NFT gaming is bigger than you think.

Cheers

Josh Bobrowsky