Gaming

Video Games: Record Investment in NFTs and Blockchain

In recent months, we hear a little less about NFT in the world of video games, but with all this, this sector is not dead, but quite the opposite. In the first half of 2022, we learn that half of the investment raised by gaming companies has gone to blockchain and NFT-related startups.

Lots of acquisitions and investments in video games

If the topic is foreign to you, we invite you to discover our file on what NFT is and how it can be used in video games. This blockchain-powered digital certificate of authenticity has yet to make its way into video games, but the investment in it has proven to be huge.

According to a report by Drakestar Partners, the start of 2022 was a record year for mergers and acquisitions, with several hundred deals announced. Among the largest sums, of course, are the acquisition of Activision by Microsoft ($68.7 billion), Zynga by Take-Two ($12.7 billion) or even Bungie by Sony ($3.6 billion).

Let’s not forget the other players we hear less about in Europe, but who are just as great. Thus, the Chinese company Tencent holds the record for the number of transactions in a year with 7 mergers / acquisitions.

The record of over $7 billion is also seen on the VC side with over 11 funding rounds worth over $100 million. Epic Games led the pack with $2 billion in funding, with Animoca Brands, Dream Games, Immutable and thatgamecompany following with big deals of over $150 million.

We talk about this regularly on Xboxygen, investment in video games is plentiful and the sector is clearly booming, especially since the COVID pandemic.

NFT and Blockchain interest investors

New sectors of interest to investors include NFTs and Blockchain. Drakestar Partners points out that more than half of the funds raised by video game startups go to NFTs and blockchain, totaling more than $2.2 billion.

The leading largest investor in the sector is Animoca Brands, a Hong Kong-based mobile gaming company that, for example, invested heavily in the Terra blockchain-based C2X platform in March last year. It is valued at $500 million.

Last January, Animoca Brands announced a fundraiser of over $358 million to invest in NFTs and games and build an open metaverse. More recently, on July 12, the same company raised another $75 million, bringing its valuation to $5.9 billion.

Animoca Brands doesn’t hide it, it just wants to become one of the world’s leading blockchain and gaming tech groups through “decentralized gaming rewards and monetization.”

Animoca Brands is working to create an open metaverse by granting digital property rights to online users through blockchain and NFT; These technologies enable true digital ownership of virtual assets and user data, as well as various DeFi and GameFi experiences (including play to earn), asset interoperability, and an open framework that can lead to greater fairness for all participants.

At the moment, many companies are talking about the metaverse and monetization through NFT, but only a few projects have managed to sufficiently demonstrate their interest to the players. Considering the sums invested, this is only the beginning of the story, the outcome of which no one knows yet.

Learn more about NFTs in video games

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