Scopely and Niantic are both prominent players in the gaming industry, with each company employing distinct strategies for using virtual currencies within their games.
Scopely's Approach to Virtual Currencies
Scopely's business model is centered around the free-to-play (F2P) approach, where players can download and play games for free but have the option to make in-app purchases to enhance their gaming experience. These purchases often include virtual currencies, power-ups, character skins, and other premium features that enhance gameplay. The use of virtual currencies in Scopely's games allows players to acquire in-game items or access premium content, providing a steady stream of revenue for the company. Scopely's focus on in-app purchases, including virtual currencies, is a key component of its revenue model, alongside advertising and partnerships with brands[1].
Niantic's Approach to Virtual Currencies
Niantic, known for its augmented reality games like Pokémon Go, also relies heavily on in-app purchases for revenue. Users can buy virtual items, currency, and enhancements to enrich their gaming experience. Niantic's approach to virtual currencies is similar to Scopely's in that it provides users with a way to access premium content and features within the game. However, Niantic also leverages sponsored locations and events, where businesses pay for increased foot traffic driven by in-game activities, offering a unique advertising platform[5][8].
Comparison of Virtual Currency Use
Both Scopely and Niantic use virtual currencies as a primary monetization strategy through in-app purchases. However, Niantic's approach is more integrated with real-world locations and events, which sets it apart from Scopely's more traditional in-game purchase model. While Scopely focuses on enhancing gameplay through virtual goods and advertising, Niantic combines virtual currency sales with real-world engagement strategies like sponsored locations.
In recent developments, Niantic has explored the integration of cryptocurrency into its games through collaborations like the one with Fold, allowing players to earn cryptocurrency by performing real-world actions[2]. This innovative approach to virtual currencies and cryptocurrency is distinct from Scopely's current strategies, which do not involve blockchain-based currencies.
Overall, while both companies utilize virtual currencies for monetization, Niantic's approach is more innovative and integrated with real-world interactions, whereas Scopely maintains a more traditional F2P model with a focus on in-app purchases and advertising.
Citations:
[1] https://vizologi.com/business-strategy-canvas/scopely-business-model-canvas/
[2] https://techhq.com/2021/12/niantic-collaboration-with-fold-lets-players-earn-bitcoin/
[3] https://www.cnet.com/tech/gaming/pokemon-go-monster-hunter-now-and-pikmin-bloom-sold-off-to-monopoly-go-owner-scopely/
[4] https://www.scopely.com/en/legal?id=tos
[5] https://vizologi.com/business-strategy-canvas/niantic-labs-business-model-canvas/
[6] https://www.bankofcanada.ca/wp-content/uploads/2016/04/value-virtual-currencies.pdf
[7] https://www.fatf-gafi.org/en/publications/Fatfgeneral/Guidance-rba-virtual-currencies.html
[8] https://canvasbusinessmodel.com/blogs/how-it-works/niantic-how-it-works