With gaming content come big, big revenues. Revenues that keep flowing with every hour played as games have all sorts of ways to monetise their players through virtual merchandise and incredible experiences. Many a parent’s credit card may have shown some unexpected in-game purchases (and these do add up…).
Every brand is out there to get a piece of the gaming pie, either by directly selling in-game items for in-game use only or by selling limited edition designer items as NFTs, which can be held on blockchain by the owner for as long as they wish. The content creator/owner of the game makes a commission on every sale made by third parties inside their games, much like a supermarket charging third party brands to be on their shelves.
Like investors are keen on dividends, companies – in return - are keen on creating stable, recurrent, revenue streams. And the gaming industry is providing this. In buckets. The Netflix subscription model is much envied by others as Netflix can collect income from its customers every month and can also increase prices if they have to (to adjust for inflation for example). As the gaming industry is expected to be bigger than streaming in the near future, Microsoft has set itself up to collect healthy, recurrent and growing subscription payments for its games.
With this deal, Microsoft surely has fired the opening shot and many other gaming content creators as well as metaverse aspirants will be spitting in their coffees and be busy mulling over their next moves. Microsoft, combined with Activision Blizzard, will be the 2nd largest gaming company in the world, after Sony. This will really change the game, literally. Gaming and the metaverse, despite some naysayers, just got a lot more exciting.