Mobile game developers find themselves in an intriguing market position these days. The mobile games industry continues to grow astronomically, yet integrating revenue streams can remain a tricky ordeal when third parties take a 30% cut of everything. However, that will no longer be an issue when Colizeum launches its solution to seamlessly integrate play-to-earn mechanics and tokenized game modes.
Gaming Remains A Hot Market
It is no secret that video games remain one of the premier forms of entertainment for millions of people worldwide. The thrill of going through an engaging story, fighting competitive battles, or just casually building a city is unlike any other. In 2021, the games market generated over $180 billion in revenue, beating expectations of $175.8 billion. That growth is primarily fueled by mobile gaming, which continues to make inroads across the globe.
A Newzoo report from late last year confirms the mobile gaming market accounts for 52% of the global market's revenue. That is a staggering representation, as most people think of gaming as using a computer or console. However, both PC and console gaming noted a slight drop in revenue last year, whereas mobile revenue increased by 7.3%. As the number of active global smartphones is n track to surpass 5 billion in 2022, this revenue growth will likely continue this year. In fact, gaming revenue should hit $200 billion by 2024, if not sooner.
Despite these positive statistics, mobile game developers still miss out on large chunks of revenue that is rightfully theirs. Purchases made through the Play Store or App Store are subject to a 30% cut for Google and Apple. Not using these stores provides less exposure to a game, which can bring down its revenue significantly. It is a very tough balancing act, but a solution is right around the corner.
Colizeum Offers A Helping Hand
Colizeum is an SDK provider that will help mobile game developers incorporate play-to-earn mechanics and tokenized game modes into their mobile games. More importantly, developers can do so while still exploring more traditional revenue opportunities. It is not a matter of replacing the existing solutions but rather providing more viable choices to make a living. Developers do not need any blockchain knowledge to make the most of the Colizeum SDK either, creating tremendous potential for both aspiring and established coders.
Many mobile game developers have lacked the ability to monetize while scaling in Tier 3 markets, yet Colizeum allows them to achieve this goal easily. Moreover, integrating this SDK and its solutions comes at a near-zero fee, unlike app stores and ad networks. For instance, a developer could organize monetized tournaments through participation fees or organizer-provided budgets. One receives a cut of every tournament's funding pot as a game developer.
Colizeum co-founder Davis Ziedins explains:
"Last year brought significant changes to the mobile gaming industry, which led to game developers of every size to discover new monetization methods and user accession tactics in order to continue to compete in the current market. Our mission is to build a set of tools that lets any traditional game developer to broaden their game monetization methods by implementing tokenized games modes and Play-2-Earn economy in their existing and future games and at the same time to unlocking new gaming markets."
The initiative by Colizeum has attracted $8.4 million in investment from prominent venture capitalists and angel investors. The list of financial contributors includes SevenX Ventures, Axa8, Momentum6, X21, Good Games Guild, Au21 Capital, Tokenomik.io, etc. Additionally, the Colizeum expanded its team by hiring industry expert and most-decorated DOTA player Wusheng (Sheng Wu).
As mobile gaming continues to build steam, it should become more straightforward for developers to implement revenue streams. However, the traditional models may not always provide what a developer is looking for in terms of earnings. Therefore, having an extra option at one's disposal, like Colizeum, is worth its weight in gold.
After all, it does not interfere with the traditional approach yet still provides an appalling alternative to unlock extra revenue and introduce new game modes and content with incentives for the players.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.