It's time to pick up your gaming controller and move your character onto the blockchain, because the gaming space is drawing closer. With over 2.2 billion gamers in the world, tech and media companies are starting to pay attention to electronic sports, ('eSports') because of the growth opportunities and appeal to the millennial demographic.
The concept of competitive gaming began in October 1972 with a game called "SpaceWar". Stanford University played host to the first ever competitive gaming tournament called, "Intergalactic Spacewar Olympics," for a chance to win a free year's subscription to Rolling Stone magazine. This movement eventually led to the 1980's video competition hosted by Atari for "Space Invaders."
In today's digital age, eSports has awoken from its slumber, bringing new platforms and genres of gaming to old and new demographics. But, the eSports space isn't shy of it's own barriers and obstacles. However, gaming today is at a decline when it comes to gamer retention and replay value. There's only one hero who can save the day--blockchain.
Why Has eSports Been Snoozing?
1. Legalization
The issue of gambling on the outcome of sporting events has been prevalent for many years now. Well, the U.S. Supreme Court acted Monday to bust Nevada's monopoly on legal sports betting, allowing more states to get in on the action and reap the tax benefits. Striking down the federal law prohibiting the gambling on outcomes of sporting events, the Court took note that the the ban, "The Professional and Amateur Sports Protection Act", was highly unusual in that it didn't ban sports gambling nationwide as a matter of federal law, but it aid the states were not allowed to permit it."
2. There's A Lack Of Monetization
When we talk about capitalizing on the eSports space, we are talking about ways in which individuals are able to 'game' the hell out of their controllers for hours, all while making a nice profit. The problem in the space however, is that there is just not enough to go around. In 2017, eSports hit around $696 million in revenue, which increased about $100 million from 2016, an estimated 39% increase.
For many, the fact that individuals are willing to spend their time watching other people play competitive video games is surprising. But, what people fail to realize is the market size and the capitalization of that market that opens up this eSports space.
Platforms like Amazon's Twitch service, have revamped the gaming space, allowing for users to watch and stream digital video broadcasts, most often time, recording video game play. As a result. this has brought the average gamer and user into the bedrooms, living rooms, and gaming areas of professional gamers across the world. There's nothing like having a bunch of people over on a Friday night with some beers, snacks, and some highly-competitve Call of Duty going on the big screen, wondering what the next big round may bring.
Now, if we were to take the idea of Twitch and kick it onto the blockchain, you'd have platforms similar to that of Bountie, Enjin, UNIKRN, Firstblood.io, Hero, Playkey.io, and G-nation. All of which provide the opportunities to game and bank. Platforms like Bountie aim to monetize the space by featuring seasonal leaderboards and weekly tournaments for professional gamers, allowing them to earn coins or tokens.
3. Limited Replay Value Causes A Decrease In Gaming
Did you know that most games have a short life span of 3-6 months, with a modern console lasting about six? Gamers easily lose interest after completing the game for the first time. This "replay value" continues to decrease as factors remain stagnant. The replay value of a game is most often times based entirely on the individual user's tastes. Factors like graphics, music, plot lines, or even brand/product loyalty are attributed to whether an individual continues to play the game after running through it. However, the problem is that with many games today, individuals aren't gung-ho about playing it again after completing it.
There needs to be an incentive for users and gamers to pick up that controller again and play. "We are seeing a decrease in gaming because of this limited replay value," an officer of Bountie told me. "Our platform aims to change that, providing reward programs and ways in which a gamer can be paid to continue playing a game they actually like."
At the end of the day, the gaming experience needs to be adaptable and ready for change--even in altered formats and platforms.
4. Difficulty In Scouting Professional Gamers Across The World
Currently, with the large number of gamers across the world, there is no way to pinpoint any single one, unless you follow them through Twitch or other online broadcasting service. But, what if there was a way you could search for a talented gamer, or even creating a database of professional bodies with accurate gamer profiles, statistics, and rankings? While adds to the capitalization of the space, it also adds to the very real market size of the eSports world.
For years, the Asia-Pacific region has dominated the global video game market. In 2017, it was calculated that the revenue from the games market in that region alone amounted to $51.2 billion U.S. dollars, almost twice the revenue of the second-ranked North American gaming market. Companies like Bountie are looking to expand the gaming ecosystem into Asia because almost 49% of eSports revenue comes from Asia, specifically from South Korea. Why? South Korea was one of the first markets to treat eSports players as celebrities and public figures, because the sport itself is so popular and widely viewed, mostly attributing the stardom to games like Starcraft, League of Legends, and Overwatch.
5. Reducing Fraud And High Transactional Costs
Like most players in the blockchain space, the desire to reduce and eliminate the chances of fraud and high transactional fees is high on the priority list. Even in gaming, gamers are subject to fraudulent behavior like "chargebacks", where an online gaming troll donates money to a gamer, but then takes that money back later on down the road. Most disputes between gamers are unfair, as gamers almost always lose or are "booted" off the servers or from the game itself.
When it comes to getting paid, players are often compensated days later due to the complex nature of traditional payouts. Platforms like Bountie and its competitors aim to create a gaming ecosystem that revolves around the gamers, making it fun to compete, all while making a living.
It's time the gaming space wakes up again, providing a continuous space for individuals to play competitively, but having fun doing it.
