Unlocking the True Value of In-Game Assets: A Market Opportunity of $247.85 Billion

Ngan

August 6, 2024

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In the rapidly evolving world of digital gaming, the value of in-game assets is becoming more apparent. For decades, gamers have invested billions in digital collectibles, characters, skins, and other in-game items. However, the true financial potential of these assets has often been overlooked. At Tilted, we believe that understanding the market opportunity for these digital treasures is essential. Here, we explore the potential value of these assets and how Tilted aims to revolutionize the gaming ecosystem.

Estimating the Market Opportunity

To accurately account for the value of decades-worth of legacy digital asset collectibles, we need to consider several factors, including historical spending, rarity, demand, and potential appreciation over time. Here’s a detailed estimation of the market opportunity:

Step 1: Annual Spending on In-Game Assets

  • Current Annual Spending (Primary Sales): $54 billion

Step 2: Estimate Growth and Cumulative Spending

  • Assume a growth rate of 10% per year for the next five years.
    • Year 1: $54 billion
    • Year 2: $59.4 billion
    • Year 3: $65.34 billion
    • Year 4: $71.87 billion
    • Year 5: $79.06 billion
  • Total Cumulative Spending (5 years): $329.67 billion

Step 3: Estimate Unlockable Assets

  • Assume 20% of cumulative spending is unlockable and tradable.
    • Unlockable Asset Value: $329.67 billion * 20% = $65.93 billion

Step 4: Consider Secondary Market Potential

  • Estimate secondary market potential at 50% of the unlockable asset value.
    • Secondary Market Potential: $65.93 billion * 50% = $32.97 billion
  • Total Unlockable Asset Value (Primary + Secondary): $65.93 billion + $32.97 billion = $98.9 billion

Step 5: Estimate Value of Legacy Collectibles

To estimate the value of legacy digital asset collectibles, consider the following factors:

  • Historical Spending: Assume historical spending on in-game assets has grown over the past 20 years, with an average annual growth rate of 5%.
  • Rarity and Demand: Assume a significant portion of these assets are rare and in high demand, contributing to their higher market value.
  • Appreciation: Assume these assets appreciate over time due to their rarity, demand, and nostalgia.

Estimation of Historical Spending:

  • Use an average spending growth rate of 5% over the past 20 years.
  • Assume the initial spending 20 years ago was significantly lower, starting at $10 billion and growing to the current $54 billion.

Calculation of Historical Spending:

  • Cumulative Spending (20 years): ~$331 billion

Estimation of Legacy Collectibles Value:

  • Assume 30% of historical spending is represented by rare and collectible assets, with an additional appreciation factor of 50% due to rarity and demand.
    • Legacy Collectibles Value (Historical): $331 billion * 30% = $99.3 billion
    • Appreciation Factor: $99.3 billion * 50% = $49.65 billion
    • Total Legacy Collectibles Value: $99.3 billion + $49.65 billion = $148.95 billion

Step 6: Total Market Opportunity

  • Total Unlockable Asset Value (Primary + Secondary): $98.9 billion
  • Total Legacy Collectibles Value: $148.95 billion
  • Total Market Opportunity: $98.9 billion + $148.95 billion = $247.85 billion

Why This Matters for Gamers and Tilted

Financial Freedom: Gamers can monetize their in-game investments, providing them with additional revenue streams and financial independence.

Increased Asset Value: Rare and collectible game assets can appreciate over time, offering lucrative opportunities for gamers and collectors.

Enhanced Gaming Experience: The ability to trade and monetize assets can deepen player engagement and investment in their gaming experiences.

New Revenue Streams: The esports industry, currently facing financial challenges, can benefit from new revenue streams through streaming and selling game assets.

By addressing these opportunities, Tilted can significantly impact the gaming ecosystem, providing players and content creators with new ways to unlock the value of their digital assets and participate in a Web3 economy.

At Tilted, we are dedicated to transforming the way gamers view and interact with their digital assets. As we continue to innovate and push the boundaries of what’s possible, we invite you to join us on this exciting journey.

Discover the future of gaming with Tilted – where your in-game investments become real-world assets.

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