Activision, the video game publisher, recently launched a competitor to Fortnite, Call of Duty: Warzone. This battle royale-style game is a free-to-play version of the game publisher’s best-selling first-person shooter game. Just like Fortnite, the game was launched with an in-built digital currency ecosystem.
About the New Game
In the game, up to 150 players fight it out on a huge battlefield. The main difference with this game from the last attempt to launch a Fortnite competitor is that you do not need to buy a full-priced game to access it. Previously, you had to purchase Call of Duty: Black Ops 4 to access the Blackout battle mode. Warzone can be played on PlayStation 4, PC, and Xbox One without spending any money.
Just as in Fortnite, Warzone features an in-game currency ecosystem known as Call of Duty Points (COD Points). This is how the game makes money. To purchase these points, you have to spend real money. The points can be used to buy a season ticket, which will unlock certain premium items, a ticket that allows you to skip in-game challenges and other optional items such as cosmetic items and skins.
How Fortnite Has Made Money
While Fortnite is free to play, its developer Epic Games has made billions of dollars from the game. To do this, they entice players to spend money on the in-game V-Bucks digital currency. They can use the coins to buy special weaponry, skins, character dances, and numerous other cosmetic items. The COD Points ecosystem was launched last fall in the full-priced Call of Duty: Modern Warfare game. It hinted that Activision was working on a similar ecosystem as Fortnite.
The In-Game Digital Currencies Are Not Cryptocurrencies
While there has been confusion around V-Bucks and COD Points, they are not real cryptocurrencies. However, the IRS had earlier classified them as cryptocurrencies and thus holders needed to pay taxes on them. However, it later clarified that they were not cryptocurrencies and holders would not need to pay taxes for holding them. However, this only applies if the holders of the coin do not sell the coins on external market places for actual dollars.
While these digital currencies are not taxable, other games are working to launch blockchain-based digital currencies. Many feel that securing items with the blockchain would give real value to the players who spend a lot of time and money in competitions trying to earn points. The launch of these in-game digital currencies by some of the biggest players in the gaming world indicates that there is recognition of the role crypto could play in the sector.
Could Warzone Dethrone Fortnite?
Given how popular the Call of Duty franchise has been over the years, the launch of Call of Duty: Warzone could prove a major challenger to Fortnite. To stay competitive, Fortnite could one day officially launch a blockchain-based in-game item. Despite not having any official links with the blockchain, Fortnite has crossed paths with the crypto sector. For instance, some platforms will allow you to bet on esports matches using crypto.
Image Source: Activision
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.
