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Revenue

How You Can Use NFTs to Increase Your Game Revenue

October 21, 20226 min
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The video game industry is no stranger to virtual items. Whether it’s an emote or a skin in Fortnite, a sword in Diablo III, or pretty much anything else you can imagine, video games have a long history of marketing digital goods to their players. With the appearance of NFTs, virtual items are becoming more common, more profitable, and sometimes, more complicated.

It seems like NFTs are everywhere. We’re hearing about multi-million dollar art sales, exclusive clubs that require owning an NFT, and even music albums and films being released as NFTs. According to research from Bitkraft, NFTs / blockchain gaming accounted for $1.5 billion dollars in revenue, and signs all point to this continuing to increase.

But what does that mean for you and your game? We’re here to help.

What is an NFT?

The simplest explanation is that NFT stands for non-fungible token, meaning that it is unique and cannot be replaced. NFTs can come in any form you can imagine, from simple things like images, audio files, or videos, or even things like emotes, weapon skins, and many others. Just about anything you can imagine can be an NFT.

For a deeper dive, take a look at our blog post “NFTs and You” where we cover the subject and touch on how NFTs can benefit your brand and your game. 

Virtual Items vs. NFTs

Comparing these isn’t like comparing apples to oranges. It’s more like comparing an actual apple to the receipt that says you own this particular apple.

NFTs aren’t technically the items themselves but the proof that you own the item. Your ownership of the item will be forever recorded on the blockchain. Then you can choose to sell it, rent it out, or do whatever you want with it from there.

How can NFTs help increase game revenue?

If NFTs are just proof of ownership, how does that help increase revenue? That’s a great question, and there are actually several ways to do this:
  • Pride of Ownership: Gamers always love to show off their latest loot, emotes, etc. Walk around Destiny 2 for a few minutes, and you’ll hear someone comment on a fantastic ship or a new emote that a player is sporting. 
  • Secondary Markets: Players have been selling virtual items via eBay and other secondary markets for years, leaving game devs out of the loop and allowing sketchy sellers to take advantage of game glitches or careless buyers. That is no longer the case with NFTs. Now selling and buying are secure and, if set up right, can be a boon to developers and players.
  • Scarcity: With virtual items, they are generally available to everyone. With NFTs, you can easily create a truly limited edition run of items. Create one-of-a-kind emotes or a 1-in-10 version of a skin. Sell a mount as an unlimited item, with a rare 1 in 1,000 chance of it being a unique, one-of-a-kind version. Lower supply often leads to higher demand, making these rare items more valuable to your players.
  • Rentals: In some cases, you can allow players to rent out their items. It’s secure, as it’s all built into the blockchain. The owners can generate revenue, and the game devs can too. It’s a win-win.
Other Benefits of using NFTs:
  • There are benefits and uses for NFTs beyond just increasing revenue. You can use them to build a community or create a special connection with your players.
  • Use them to fund your game by selling them with starter packs, preorders, or advanced subscriptions.
  • Give NFT holders exclusive access or first looks at your game, new updates, or upcoming features.
  • Allow players to sell their own creations within your game.

The Achilles Heel of NFTs and how to solve it

The most significant difficulty with NFTs is that you can only purchase them one way - with cryptocurrency. This can be a lengthy process: signing up for a wallet, buying cryptocurrency, linking your wallet to the seller of the NFT you wish to buy, then finally buying the NFT. This can be confusing to many potential buyers, and it leaves a lot of people out of the NFT marketplace.

Fortunately, with Xsolla NFT Checkout, we’ve made it much more straightforward. Your players can buy virtual items and NFTs using whatever payment methods they want, from around the world, using your existing Web Shop or in-game store. If you don’t have a Web Shop, that’s ok. They’re easy to build!

How it works

Selling NFTs works the same way you sell your in-game items, virtual currency, and subscriptions. We’ve just upgraded the system with NFT Checkout. Let’s take a look at the flow.

SELECT
  • As the developer, you create an in-game store (powered by Xsolla or in-house) to sell in-game items that can be minted as NFTs.
  • These items are stored on the Xsolla inventory management platform with Commerce API.
  • The customer selects the in-game items they want to buy and proceeds to checkout.
PAY
  • The customer selects their preferred payment method.
  • The customer enters their payment details and confirms the payment.
  • When the payment is successful, the customer receives a receipt.
RECEIVE
  • The virtual item is delivered to the player by Xsolla
  • Players can mint their virtual item for an NFT within the game or through the Babka interface
  • The minted NFT can be transferred to any blockchain wallet
It’s as simple as that. 

Ready to get started?

NFT Checkout begins with your Xsolla Publisher Account, an easy-to-use, all-in-one control center that enables you to set up and manage every Xsolla product you need to optimize and monetize your games.

If you’re an existing Xsolla partner, log in to your Publisher Account, go to your Project, or contact your Account Manager.

If you’re new to Xsolla, simply register for an account, and fill in the required details for your Project.

For advanced how-to instructions or technical assistance, don't hesitate to contact our integration team via online chat - we’re always happy to help!

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