II. Market Analysis
- 1.VR: According to Statista, the global virtual reality market size was valued at USD 6.1 billion in 2020 and is projected to reach USD 20.9 billion by 2025, growing at a CAGR of 27.9% during the forecast period. The gaming and entertainment industries are currently the largest users of VR technology, but the adoption of VR in other industries, such as healthcare, education, and manufacturing, is also increasing.
- 2.Play-to-Earn Gaming: The play-to-earn gaming market is relatively new, but it's growing rapidly. According to a report by VentureBeat, the play-to-earn gaming market is expected to generate $100 billion in annual revenue by 2025. The success of games like Axie Infinity, which has generated over $2 billion in revenue since its launch in 2018, has fueled the growth of the play-to-earn gaming market.
- 3.Metaverses: The metaverse market is also growing quickly, driven by the increasing popularity of online gaming and virtual experiences. According to a report by MarketsandMarkets, the global metaverse market size is expected to grow from USD 4.1 billion in 2021 to USD 280.9 billion by 2025, at a CAGR of 509.2% during the forecast period. The growth of the metaverse market is expected to be driven by the increasing adoption of blockchain technology and the development of new metaverse platforms.
- 4.Web3 Technologies: The web3 technologies market is still in its early stages, but it's expected to grow significantly in the coming years. According to a report by Transparency Market Research, the global web3 technologies market size is expected to grow from USD 212.8 million in 2021 to USD 6.6 billion by 2031, at a CAGR of 56.2% during the forecast period. The growth of the web3 technologies market is expected to be driven by the increasing adoption of blockchain technology and the development of new decentralized applications.
- VR: The VR market presents opportunities for immersive experiences in gaming, education, training, and entertainment. With the advent of new VR hardware and software technologies, the market is projected to grow rapidly in the coming years.
- Play-to-earn gaming: Play-to-earn gaming presents a new revenue model that allows players to earn money while playing games. This model is gaining popularity in the gaming industry, and is projected to grow exponentially in the coming years.
- Metaverse: The metaverse presents opportunities for new forms of social interaction, commerce, and entertainment. As the world becomes increasingly digitized, the metaverse is expected to become a major part of our daily lives.
- Web3: Web3 technologies present opportunities for decentralized applications and services that are secure, transparent, and trustless. This presents opportunities for new business models, such as NFTs and decentralized finance.
- VR: The VR market still faces challenges such as high costs of hardware, limited content, and user adoption. The industry needs to address these challenges in order to reach its full potential.
- Play-to-earn gaming: Play-to-earn gaming faces challenges such as regulatory concerns, game balance issues, and player exploitation. The industry needs to address these challenges to ensure long-term sustainability.
- Metaverse: The metaverse faces challenges such as interoperability, scalability, and user privacy. The industry needs to address these challenges to ensure the metaverse can reach its full potential.
- Web3: Web3 technologies face challenges such as user adoption, scalability, and regulatory concerns. The industry needs to address these challenges to ensure the long-term success of decentralized applications and services.
StormRiders is well-positioned to take advantage of the opportunities presented by these markets. By creating an ActionVerse that leverages VR, play-to-earn gaming, metaverse, and Web3 technologies, StormRiders can offer a unique and immersive experience for its users. The platform's focus on action sports also presents a niche market opportunity that is currently underserved in the gaming and metaverse industries. With the right approach to addressing the challenges in these markets, StormRiders can become a major player in the next generation of digital entertainment and commerce.
Tony Hawk Pro Skater 1 + 2 was a successful remake of the classic skateboarding video game, generating over $2 billion in revenue since its release in 2020. While Tony Hawk is undoubtedly an icon in the skateboarding world, StormRiders the ActionVerse has an advantage in that it brings together not just one, but three different action sports: skateboarding, snowboarding, and surfing. By working with multiple professional athletes across these sports, StormRiders can tap into the vast social networks and followings of these athletes, helping to build awareness and excitement around the game. This is especially relevant given the rise of social media and influencer marketing, which has become a powerful tool in the gaming industry. By leveraging the reach of multiple pro athletes, StormRiders has the potential to reach a much wider audience than just the traditional skateboarding community, opening the door to new markets and revenue streams. Additionally, the play-to-earn model and use of blockchain technology further differentiates StormRiders from other action sports video games, providing a unique selling point that can further drive growth and adoption.
Roblox is currently one of the biggest metaverse platforms with over 43 million daily active users as of 2021. The company generated $923.9 million in revenue in 2020, and its market cap has exceeded $50 billion. Roblox's platform allows users to create their own games, experiences, and virtual items, which can then be shared and monetized.
In terms of revenue per user, Roblox made an average of $4.54 per daily active user in 2020, which equates to roughly $0.19 per user per day. It's worth noting that this revenue comes not only from in-game purchases but also from advertising and partnerships with companies such as Nike and Netflix.
While the potential size of a metaverse is difficult to predict, Roblox's success highlights the massive opportunity that exists in this space. With the growing popularity of virtual experiences and the increasing adoption of blockchain and cryptocurrency technologies, the potential for a successful metaverse like StormRiders to generate significant revenue is certainly possible.
Axie Infinity is a play-to-earn game built on blockchain technology that has seen significant growth in the past year. The game allows players to own and battle cute creatures called Axies in a digital world, earning cryptocurrency for their efforts. The game has become popular in countries like the Philippines, where it has provided a new source of income for many people.
In terms of revenue, Axie Infinity has seen tremendous success. According to data from DappRadar, the game has generated over $1.7 billion in revenue since its launch in 2018. In July 2021, the game reportedly made over $130 million in revenue in a single week, making it the top-grossing blockchain game at the time.
One reason for the success of Axie Infinity is its unique play-to-earn model. Players can earn cryptocurrency by playing the game and then use it to buy more Axies or sell it for real-world currency. This has made the game attractive to people who are looking for alternative income streams, especially in countries with struggling economies.
Axie Infinity has also gained attention from investors. In July 2021, the game's developer, Sky Mavis, raised $152 million in a funding round led by venture capital firm Andreessen Horowitz. This funding will help the company continue to develop the game and expand its reach to new markets.
Overall, Axie Infinity has demonstrated the potential for play-to-earn games to provide a new source of income and create economic opportunities for people around the world. Its success has also drawn attention to the potential of blockchain technology for gaming and other industries.