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Understanding a market is not about watching a trend move, it is about understanding what is behind the trend and where it will go next. In this article, I’ll share our insight into the processes that now impact GameFi – and how to use them to create a successful strategy.

You should analyze GameFi in combination with classic GameDev, as well as general consumer entertainment trends. Emerging and rapidly growing niches in the entertainment industry such as GameFi cannot exist in isolation from social trends or the economy. Therefore, in the first part of the article, I will focus on the financial aspect (the Fi in GameFi) and then discuss the reasons and prospects for the trend.

Intangibles are becoming an increasingly important part of today’s business model, especially now that you can buy, sell and trade them. Rights to these assets are segregated from the assets themselves and traded in the form of NFTs, tokens, stocks, coins and other derivatives. It’s a trend.

The most important thing is that we are seeing the emergence of a new proto-market, that of time devoted to entertainment and leisure. It turns hobbies and hobbies into another way to buy and sell people’s work. For commodity-producing companies, rewards in the form of NFTs, tokens, and other liquid assets become another way to redistribute profits.

Offering the most attractive terms to players will soon become a crucial part of a business strategy and product lifecycle. This will allow companies to create a strong economic link between the consumer and the product – and make the player dependent on the product not only emotionally but also financially.

We can see this trend in the evolution of Play-to-Earn projects in developing countries. If you look at NFT adoption and P2E audience metrics globally, you’ll see that regional leaders and semi-periphery countries dominate. Their population is wealthy enough to afford a smartphone with an internet connection. But it’s also poor enough to see playing P2E games for many hours a day to earn $1,000-1,500 a month as a great alternative to a traditional career.

We are talking about an urbanized, technology-savvy population, whose share in developing countries continues to grow. These countries lack advanced state support systems. As a result, tens of millions of people who have the same access to information, innovation and the Internet as in the West, but do not have the same economic guarantees, must find their place in the digital economy. modern — and fast. For example, India has an urbanization rate of only 35%, while the global average value is 56%.

In this context, as the adoption of digital technology and cryptography in developing countries increases with their population, there is fertile ground for new monetization tools to evolve. This trend is shaped by public interest and the share of profit that product providers are willing to allocate to attract new users.

The next step is to sell new merchandise based on time spent playing and in-game achievements; users are essentially exchanging precious minutes of their lives for tokens. Subscriptions, expensive weapon skins or a high level achieved by its characters do not motivate this target audience as much as an opportunity to earn a stable income.

The example of India, which recently introduced a flat 30% tax on profits from virtual digital assets, shows how quickly countries can monetize this trend. They shift the costs, social responsibility and risk onto the people working in this new monetized entertainment industry, leaving them to fend for themselves.

The high adoption speed and much more flexible approach to DeFi that we see in developing countries follows logically from the fact that they need to catch up with major capitalist states. India, Brazil, Vietnam, these countries have not benefited much from the modern economic model. However, crypto gives them a chance to financialize their citizens’ time and become more independent from traditional fiat reserve currencies (USD, euro, franc, etc.) by prioritizing the new attention economy.

Key forecasts

  1. We’re likely to see a huge range of projects focused on users who comfortably earn a living playing games on a daily basis. These users will act as job advertisements for GameFi projects; they will also become a valuable resource that projects will fight for.
  2. Financial derivatives based on users’ actions, attention and playing time. Hobbies and hobbies will be financialized and users will choose hobbies based on their financial efficiency. I’m sure we’ll eventually see wallets made up of NFT holders, traded by both gaming projects and financial institutions. This new type of asset will be just as profitable and liquid as subprime mortgages.
  3. Increase in income and rapid penetration of smartphones and the Internet in developing countries.

It takes time for the benefits of the post-industrial revolution to reach developing countries, but the low tide of digitization has already turned into full-flowing rivers in the form of OnePlus or Samsung production sites in India and the United States. Brazil. The number of smartphones is not an isolated fact or just a sign that mobile games are about to become totally dominant, but also a sign of people’s growing ability to pay for material goods.

Those who could only dream of a smartphone a short time ago will buy one soon and then buy an NFT skin in a game. The consumer society works the same in any country. It is this consumer society that we will discuss later in the article.

In this new reality, AAA PC games that sell for $80 without DLC and require an expensive gaming PC to run will feel like an unnecessary luxury. This does not mean that large and expensive AAA projects will disappear, but they will have to evolve. For example, Take-Two Interactive had to split off the sequel to its popular GTA franchise to focus on DLC (downloadable content). This extends the period the product continues to make money – a pressing issue given inflation and the long and expensive production process. You could say that games are broken up into smaller segments to keep studios making money and gamers staying entertained.

In the next part of the article, we’ll talk about the society shaping these trends – and how they, in turn, impact society.


  1. Developing countries will drive GameFi adoption with their low starting incomes, rapid urbanization and even faster digitization. The most engaged GameFi audience will be people for whom Web3 is the first iteration of the web they come into contact with.
  2. More and more game studios will turn to mobile games, thanks to both falling development costs and the rapid spread of smartphones.
  3. Governments in developing countries are profiting from the spread of crypto. For them, this is a new way to earn extra income without taking any extra action.
  4. AAA level game projects will introduce DLC mechanics and in-game purchases. Such games take longer and are more expensive to create, but the built-in monetization will compensate for this by extending the profitability cycle.
  5. GameFi’s tokenomics and economy will take center stage as another tool to attract and retain gamers.
  6. The time spent gambling and enjoying various forms of entertainment will be increasingly financialized.