Digital goods are the gaming industry’s trillion-dollar opportunity. Here’s why.
Each year, the gaming industry generates more than $100 billion in revenue. Around 87% of that annual revenue—$94.4 billion—comes from the digital gaming industry.
And that’s just the tip of the iceberg.
Why? Because that digital gaming figure only includes publisher-purchased goods, not the ones that gamers earn by playing through the game. If gamers had a safe way to buy, sell or trade all their digital goods, that would easily push digital gaming revenue past the $1 trillion mark—and shift the industry paradigm forever.
With Gameflip’s new FLIP token and decentralized ecosystem, we’re closer than ever to realizing this tremendous untapped opportunity. Here’s why our Dec. 4 Initial Coin Offering (ICO) is changing the game for digital goods.
The Growing Demand for Digital Goods
As the CEO of Gameflip, I can attest to the tremendous demand for transacting digital goods. Since our digital goods marketplace launched in 2014, in Silicon Valley, we’ve cultivated a community of 2 million users across our mobile app and website and now receive 10 million website views monthly. Our investors include top-notch Silicon Valley VCs who know our team has the expertise to dominate the digital goods space.
But we’re not stopping at 2 million gamers. During my decade in the gaming industry, I’ve seen countless gamers go to third-party websites to buy, sell or trade their hard-earned digital goods. These transactions typically result in scams, which not only cause frustration for gamers but also cause publishers to lose their best players. In my early days as a CEO of a game publishing company, I saw this happen frequently on Reddit. Now, with Gameflip, my team and I are in the position to change that.
The game market is continuing to grow, which means that the demand for digital goods will only increase. The gamer demographic cuts across age groups.
The gamers who played Overwatch 20 years ago, for instance, are still playing today, as a part of a thriving community that has expanded to 25 million people. The 2016 League of Legends World Championships garnered 396 million daily unique impressions over the 15-day tournament.
The gaming industry is undoubtedly booming, and new and existing games are adding new digital goods every day. Gamer-earned items are typically more valuable than publisher-purchased goods, and because they are often rare, they tend to hold this value over time. All these factors combined make it the opportune moment to provide a safe platform for transacting all digital goods.
Our FLIP token and blockchain ecosystem will make it possible to safely transact digital goods within games and reinvest into new games–because we’re bringing incentivizing publishers to join the gaming revolution. The opportunity to have true ownership of digital goods has never before been presented to gamers, and is a long-awaited development. And it’s a win for publishers too, who will increase their revenue streams.
FLIP and the future of digital gaming
With the industry’s most comprehensive, trusted digital goods marketplace, Gameflip is in a unique position to help publishers and gamers benefit from the sale of all digital goods. And the blockchain makes this possible.
Our FLIP cryptocurrency and marketplace will finally provide a safe, transparent marketplace for buying, selling and trading gamer-earned digital goods. Our smart contracts will protect gamers from fraud, and blockchain technology will empower people from all over the world to make trades, no matter their game of choice. And here’s the best part: gamers will be able to trade universally on all marketplaces, not just Gameflip.
Our team is trusted and stacked with industry veterans who know gaming inside and out. We’ve carefully developed our FLIP model to benefit both gamers and publishers. Innovators have traditionally overlooked publishers in their formulation of a solution. That’s why we’ve created SDKs to incentivize publishers to move their goods to the blockchain, and give them credit where credit is due. Through FLIP, gamers will finally have true ownership of their digital goods. This, in turn, will encourage them to purchase more digital goods, confident that they can recoup their investments in a secure, liquid marketplace. Publishers will also benefit by receiving a commission each time one of their game’s players makes a transaction using FLIP’s smart contract.
And why are we so confident that our FLIP tokens will continue to gain value? The industry’s global growth, and our trusted marketplace, make FLIP the ultimate recipe for success. We’re not a fly-by-night team launching an ICO to make headlines; we know FLIP will transform gaming for the better and open up an even larger rate of growth.
During our pre-ICO, Gameflip shattered our funding goal and drew backers from around the world. When our ICO launches on Dec. 4, the world will be even closer to realizing the full potential of the digital goods revolution. And Gameflip is honored to be the team trusted to usher in gaming’s new era.