Many are seeing the devastating fire of excitement over the emerging asset class spreading to the multi-billion dollar video game industry, where a digital real estate market is thriving amid a pandemic-triggered surge in electronic games and cryptocurrency excitement.
Virtual equipment like weapons and gear has been the subject of huge spending for years among players from Fortnite, Minecraft and World of Warcraft, among others. With NFT-enabled games, however, players can sell game goods they no longer need – because they’ve managed to collect something better or switch to a new search for cryptocurrencies that can be converted into real dollars, for example.
With virtual real estate, some games allow players to purchase digital certificates in the form of an NFT that is associated with a particular plot in a particular game. The more players join the game, the more players grab land to complete certain tasks and missions, which increases the price of the finite resource. Once the market is sufficiently mature, players who own land can rent their land to others, bill others for usage, or sell it either in-game or through a third-party exchange, with transactions supported by a game’s unique cryptocurrency in Ethereum and then converted into US dollars.
Digital real estate has already been sold for massive real sums of money. Eric Schiermeyer, CEO of Gala Games, told the Journal that a great kingdom in Mirandus, an unreleased fantasy RPG that his company developed, sold to a group of people for $ 1.6 million last month. In the Axie Infinity virtual pet universe, nine adjacent lots were sold for $ 1.5 million.
In two well-received sales, a virtual world called The Sandbox sold approximately $ 2.8 million worth of land, prompting the company to assign its digital real estate a face value of $ 37 million. Landowners around the world can use The Sandbox’s game-making tool to create games within their confines. The team plans to publicly release the product in April. At this point, early users can play the games created in the virtual world.