Game Developers Can Implement Cryptocurrency Alternative to Ad Revenue

Saturday, May 16, 2020
No items found.

A new advancement in the online world of game development means that in-game advertising can be removed. By utilising a block-chain based revenue stream in Unity games, players can still be incentivised, and revenue can be created without relying on advertisements.

It’s not easy to get by as an independent game developer. To become successful, there is a series of challenges that must be faced. One of the biggest is that because they don’t have a marketing budget, many developers have to give their game away for free to get people to play it. The strategy here is to get some return on costs incurred during the development process through micro-transactions and advertisements. The downside of this is that it makes for a poorer playing experience.

Research from 2019 highlights that the amount of free-to-play mobile games that now include in game advertisements is at 94%. This has come alongside a growing awareness of marketers that in-game advertising is a viable channel to promote their product. Whereas game developers used to try to avoid ads as much as possible, their hand has been forced slightly by the market in order to provide a return on their development efforts

Advertising within games has been a monetisation strategy for some years now. It works because advertisers pay developers to show ads to their game’s users. There are multiple strategies and ad formats involved with in-game adverts, including rewarded video ads, offerwall ads, and interstitial ads.

Interstitial ads can be either videos or images and are inserted at pauses during gameplay. Playable ads are small mini games that a player can test before installing the advertised service. Rewarded video ads incentivise users to watch ads in return for a reward. Offerwall ads provide a list of tasks players can complete in exchange for an in-app reward.

With the latest development, it now looks like there is an alternative option to all of the ads outlined above, this is called Qudo. This comes from a blockchain development team called BlockBastards.

If a game is built on the Unity platform, Qudo makes it possible to simply initiate an alternative revenue stream to advertisements. For this to happen, developers need to pay a minimum fee to Qudo, which will vary but currently is $15.

If a developer wants, they can pay a higher amount, however the reward system in place is not based on a system where the more you pay, the more you get.

To get started, a game can be linked with Qudo in a very short amount of time - roughly 20 minutes. When the game has been integrated with Qudo, the system incentivises players with rewards by paying more attention to the game instead of adverts. Alongside this, developers can also provide tokens to players for achievements in the game. These tokens can then be spent on in game purchases.

How does it work?

Once every ten minutes a block reward of 1,000 Qudo will be created by the network. All players in this ten minutes will submit their activity. 90% of the 1,000 Qudo will be split between all the active games and players. The remaining 10% is kept aside for the founders.

Every game that has been played will receive a reward that is formed from their amount staked. 10% goes to the developer and 90% is divided amongst the people playing during the time period. The benefits of this approach is that it incentivises gamers to play new games from developers they might not have heard of, that have a smaller player base.

Qudo aims to display games in an unbiased way, with individual merit considered. This is with the aim of giving smaller developers and games a platform. This means that larger organisations, with bigger budgets aren’t able to buy up all screen space.

While the introduction of this new service from Qudo is very welcome, time will tell what the potential returns will be for developers. This will largely become more understood once the platform goes live further into 2020. The oversaturation of games with adverts has long been an issue within the gaming community. But with no other way for developers to reimburse the costs involved with developing a game, it has been the only option.