As the metaverse takes shape, gaming companies that are planning to enter this space must develop and articulate an overarching metaverse vision and build their strategies around that vision. Determining the company’s overall goal in the metaverse — whether it’s boosting existing revenue streams, creating new ones or building the brand — is essential. Who are its customers, and what will they be doing in the metaverse? Beyond this, what value proposition does the company bring (or plan to bring) to its customers? How will the company differentiate itself from its competitors?
The core gaming experience is merely a starting point for the range of social experiences that are possible in the metaverse. Gaming companies must think beyond current gaming experiences and consider what strategic opportunities exist in the broader metaverse. Currently, entertainment events, education, business communications and employee training are the primary non-gaming opportunities in the metaverse, and many others are still being imagined.
Once a broader vision comes into focus, companies must determine how they will generate revenue. Game publishers, for example, generate most of their revenue through the sale of games, in-game purchases, advertising and subscriptions. However, in the next few years this will change, with gaming companies generating revenue in completely new ways. For instance, as NFT adoption grows, games will collect transaction fees from the direct sales of NFTs to users, as well as a portion of secondary sales of NFTs through smart contracts. With the NFT space moving at a lightning-fast pace, today’s NFT use cases will soon be obsolete. As such, companies must explore how to monetize NFTs not only today, but also tomorrow and 10 years from now.
While the new gaming landscape offers opportunities, it also presents risks to current business models. For example, the rise of NFTs and smart contracts could upend how gaming companies are structured. As the use cases of NFTs evolve, a “creator” economy also may emerge. In this scenario, game developers and other creators may have greater incentive to monetize their games independently rather than through a gaming company or other third party. At the very least, creators are likely to demand greater control over their creative output. Thus, gaming companies should engage in scenario planning to assess how this change might impact their revenue generation and content acquisition capabilities. The rise of a creator economy will also force gaming companies to re-evaluate their value proposition to content providers. What can they offer newly empowered content creators beyond what they offer today?