Microsoft Adopting Ethereum For Gaming Royalties; Benefits to The Gaming Industry

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According to recent statistics, the PC gaming industry brings in an estimated revenue of $37 billion. The estimated value of the online gaming market, is $77 billion. In 2020, consumer spending on online gaming was $11.6 billion. 

Microsoft adopting Ethereum for the gaming market should not, thus, come as a surprise. Blockchain has proved to hold significant value in the business world. It started with the commodities and financial markets and supply chain. Now it is the gaming industry.

Microsoft has particularly integrated it to help with the rights and royalties management in the industry. This involves the creation of comprehensive contracts and everything surrounding it. That is from acquisitions, sales, delivery, and royalty calculation. 

This adoption looks to enhance the legal system by using smart contracts to manage relationships in the industry. This further ensures its quality. While that is the case, the new development is set to do much more for the industry. 

Microsoft adopting Ethereum: what it means for the gaming industry

Microsoft adopting Ethereum goes further than making royalties management efficient. It will change the gaming sector, which several controversies have faced in the past. We are talking about players not being comfortable with the high fees and hidden odds. There are also fraudulent activities, and data security issues, to mention a few. 

Microsoft adopting Ethereum and other blockchain technologies in the gaming industry is going to benefit the industry in the following ways.

1. Beefed up security

Game items and apps have been under the threat of hackers. On average, the gaming industry suffers over 1 billion cyber attacks every month. Developers depend on reverse engineering and ensuring device security to protect their products. Blockchain will also contribute to security.

Note that data stored with blockchain encryption is immune to hackers. Microsoft adopting Ethereum and blockchain is a sustainable move. It will double the security of gaming products. For cybercriminals to access the game items, they need to have the right nodes at the right time. That is if they are to execute a breach. 

Blockchain will protect developers from financial losses caused by hackers.

2. Enhanced control over the gaming industry by developers

Like in other sectors, policies and regulations often push developers to the walls. The ripple effect is the rise of the black gaming market. This hinders gaming companies from getting maximum revenue as most of it is redirected to the black market. 

Blockchain eliminates the need to create policies. This way, developers can access their royalties any time they need them. In such an environment, the black market is unlikely to thrive, and the industry players will get their full benefits.

3. Cost-effectiveness

This will be particularly experienced when it comes to payment processes. Payment through fiat currency has been in use since the establishment of the industry. The system can be expensive. This is, especially, because there are intermediaries involved making the transaction costs expensive. 

A decentralized payment method allows players to access games online at low fees. More so, it eliminates the threat of man-in-the-middle attacks. This is whereby the hackers eavesdrop during a transaction for information, which they use for malice.

The system eliminates the opportunity for hackers to manipulate the gaming platforms.

4. Accessibility to gaming items

Microsoft adopting Ethereum will also see better accessibility to gaming items. As a result of the availability of micro-transactions, it will be easier for developers to create games and other items and avail them to the players.

Developers are thus able to sell their items at affordable prices and make profits at the same time. This will go a long way in preventing the rise and prevalence of the black market in the gaming industry. It is easy for the players to control their expenditure when interacting with the games and related items.

5. Automation of processes

Automation comes with both price and cost-efficiency. The royalties circulation system is a significant pain point for most gaming companies. The processes are time intensive and also demand the contribution of several people.

We are talking about evaluation, reviews, and tons of other manual processes. They can be expensive and often lead to high operational costs. This eats into the revenue that gaming companies ought to make.

Replacing the manual processes through automation goes a long way in enhancing the profits of the industry.

6. Increased transparency

The traditional contract system is not so generous with information. Microsoft adopting Ethereum will give developers access to real-time information. The developers can see when their products are selling and how much they are making at the same time.

This will go further ahead in making contract management seamless and practical. Partners will have such an easy time evaluating the information on their contracts. For instance, as their items sell, they are fed into the smart contracts, where again royalties are calculated. 

The information is then available to the public. Every partner can keep track of the transactions. This allows the creators to record information on a daily basis. This will, in the end, make reporting simple. 

Microsoft adopting Ethereum is a revolutionary move

The move by Microsoft will be a game-changer in the gaming industry. It has set the precedence for the adoption of blockchain technology into the industry. The benefits that will come with this cannot be overstated. 

Automation of most of the processes will cut operational costs. There will be real-time calculation of royalties as sales are made. This will cut off manual processes and will save money on human capital.

Microsoft adopting Ethereum will also address the gaming industry’s primary pain point. That is cyber threats. Blockchain encryption will prevent hackers from accessing information. This will prevent milking the sector of its profits. The increase in security and the elimination of strenuous policies will go a long way in preventing the rise of the black market.

Blockchain will bring a revolution to the gaming industry.

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