Spain’s GFAL Bets on New Gaming Model With Blockchain Tech, Eyes Chinese Market
Games for a Living (GFAL), a Spanish gaming startup specializing in innovative technologies, is set to redefine the gaming landscape with a pioneering model allowing players to trade time and assets using blockchain technology. With eyes on the Chinese market, the company plans significant advancements next year.
The traditional gaming industry faces challenges due to market saturation and decreasing profit margins. In response, GFAL aims to fundamentally change how people engage with games, as explained by the founder and Chief Executive, Manel Sort. GFAL’s executive team, with decades of experience in the gaming sector, has witnessed various transformations. Sort, having worked with industry giants like Activision Blizzard and King, is optimistic about another major shift, emphasizing, “What I like the most is being part of those huge shifts.”
Sort recounted the industry’s evolution from premium console games to free-to-play models and proposed a groundbreaking approach — allowing players to purchase time from one another. The heart of GFAL’s new model lies in giving players a choice. “In premium games, you had to buy the full game to play. In free-to-play games, it was optional; you could choose to pay the company or not. We are creating a new paradigm where you can decide to pay another player or the company,” Sort elaborated.
The platform GFAL is developing is anchored by three principles: ownership, standardization, and seasonality. Players will have ownership of in-game items, which they can trade with actual exploitation rights, while standardization will ensure these items can be used across different games. The seasonality aspect, inspired by the battle pass model, aims to keep the games engaging and relevant for extended periods.
GFAL’s Early Success and Upcoming Releases
Despite not having released any games yet, GFAL is optimistic about its model’s potential. “Instead of merely spending money on the game, I envision a system where players can buy effort from one another, similar to physical games like Pokémon or Magic: The Gathering,” Sort remarked. Preliminary tests with simplified versions have reportedly yielded impressive results, with about a 60 percent increase in return on advertising spend.
Founded in 2020 in Barcelona, GFAL is currently developing two first-party titles, Elemental Raiders and Diamond Dreams, along with two third-party games, Dead Zombie and Jump Pump. Diamond Dreams is particularly noteworthy for targeting the luxury market, with features likely to attract high-end jewelry brands. Sort hinted at potential partnerships with luxury brands in the first half of next year.
GFAL’s innovative approach has captured the attention of major industry figures, evidenced by their successful seed fundraiser in April with contributions from venture capitalist Mitch Lasky and Finnish mobile game development company Supercell. The funds will go towards advancing GFAL’s gaming development and publishing studio, alongside the commercialization of their mobile game Elemental Raiders.
The company has also introduced the $GFAL token, which serves as the universal currency within the gaming experience, enabling players to monetize their time. In Spain, this token is classified as a utility token by the Comisión Nacional del Mercado de Valores, with active trading.
Strategies for China
Reflecting on China’s gaming industry’s evolution over the past 25 years, Sort noted the remarkable growth in quality and market sophistication. Chinese gaming giant Tencent Holdings, which has a majority stake in Supercell, contacted GFAL over a year ago, highlighting the interest of major players in GFAL’s approach.
GFAL operates internationally, including in the United Arab Emirates where the utility token has regulatory approval. The company is contemplating regions for focus, with China being a key market given its potential and existing collaborations. GFAL plans to approach the Chinese market next year, ensuring compliance with local regulations and cultural preferences. Diamond Dreams is being adapted with designs tailored for Chinese consumers, reflecting GFAL’s dedication to localization.
While the regulatory landscape regarding utility tokens in China presents challenges, Sort emphasized the significance of understanding and adapting to local frameworks. GFAL’s successful experience with securing token approval in the UAE is expected to be beneficial in navigating China’s regulations.
Sort highlighted the achievements of Chinese developers globally, citing examples like Genshin Impact and PUBG Mobile. GFAL’s model promises to assist Chinese developers in reaching broader international audiences. The company is eager to partner with Chinese developers to adapt existing games to its platform. “There are many great games released in China, and we aim to help them reach a wider audience overseas,” Sort noted, underscoring the growing global appeal of Chinese-developed games.
This trend has been growing over the last decade, with more Chinese-developed games being played worldwide. GFAL plans to connect with Chinese companies to present its model, offering them the opportunity to adapt their games to this new paradigm if they wish.
With innovative ideas and strategies, GFAL is set to make significant strides in the gaming industry, leveraging blockchain technology to redefine gaming experiences and market interactions globally, particularly focusing on expanding into the Chinese market.
