Exploring Web3's Implications for Multi-Billion Dollar In-Game Item Economies

Intro

As mobile gaming grew its share of the global games industry, representing roughly half of total revenue, the free-to-play (F2P) business was booming. Following a model of onboarding first and monetization later via in-app purchases (IAPs), F2P quickly carried the industry to new all-time highs. To put things into perspective, in 2022, Game of The Year winner Elden Ring, which followed a classic premium pricing model, amassed approximately $790.6M in primary sales revenue (not including deluxe editions, IAPs, and discounts). Genshin Impact, on the other hand, a completely F2P game, made roughly $1.8B during the same period.

It is for this reason that the number of F2P games released each year is increasing. Not only are the days when disgruntled gamers protested the release of horse skins far behind us, but today’s players have embraced certain IAPs, such as in-game cosmetics, to such an extent that they generate more revenue per month