(Yicai) Oct. 24 -- Games for a Living, a Spanish gaming startup focused on new technology, is pioneering a revolutionary gaming model that allows players to trade time and assets using blockchain tech, with plans to advance on the Chinese market next year.

Traditional gaming business models face mounting pressure from market saturation and shrinking margins, so GFAL is developing a platform that fundamentally changes how people play games, founder and Chief Executive Manel Sort said in an interview with Yicai.

GFAL's co-founders have decades of experience in the gaming industry and have seen many transformations, Sort noted. “What I like the most is being part of those huge shifts.”

Having witnessed the industry's evolution from premium console games to free-to-play models over his time at gaming giants, including Activision Blizzard and Candy Crush Saga's maker King, Sort believes the industry is ready for another change. Developers usually sell time to the player, Sort said, noting that the core of GFAL's new model is "What if players can buy time from other players?

"Let's change the whole concept," Sort noted. "Originally, 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. That's the fundamental aspect of our model."

GFAL's platform rests on ownership, standardization, and seasonality, according to Sort. Players can own and trade game items with actual exploitation rights, while standardization ensures cross-game compatibility of items, he added. 

Inspired by the battle pass model -- a monetization approach in games that provides new content often via a tiered system -- the seasonality element ensures that games remain engaging and playable for years, Sort pointed out.

GFAL's Early Success, Upcoming Releases

While GFAL has not released any games yet, the company is confident in the potential of its new model, Sort said. "Instead of merely spending money on the game, I envision a system where players can buy effort from one another, similar to interactions in physical games like Pokémon or Magic: The Gathering.

"We've done very early tests with simplified versions, and we can already see that we're getting about 60 percent more in return on advertising spend," Sort noted.

Established in 2020, Barcelona-based GFAL is working on two first-party titles - Elemental Raiders and Diamond Dreams - and two third-party games - Dead Zombie and Jump Pump, Sort said. Diamond Dreams targets the luxury market with features that could appeal to high-end jewelry brands, he added.

"We created and designed a product that is truly appealing to any top brand in the jewelry world," Sort noted, adding that GFAL will likely announce some luxury brand partnerships in the first half of next year.

GFAL's innovative approach has attracted significant attention from major industry players. GFAL completed its seed fundraiser in April, with venture capitalist Mitch Lasky and Finnish mobile game development Supercell participating.

The proceeds will be used to advance GFAL's pioneering video game development and publishing studio and the commercialization of its mobile game Elemental Raiders, the company said, without disclosing specific investment details.

GFAL has also launched the $GFAL, a token that serves as the universal currency driving the gaming experience and enables players to monetize their time, according to its website. The Comisión Nacional del Mercado de Valores in Spain has classified the token as a utility token. It trades at 011803 US cents, with a trading volume of USD205,877.

China Strategy

China's gaming industry has evolved over the past 25 years, with the market having a remarkable development, Sort noted. "The level of quality of education in video games in China has grown incredibly in the last 20 years," he added, highlighting the market's increasing sophistication.

Chinese gaming giant Tencent Holdings, which owns 80 percent of Supercell, talked to GFAL about a year ago, Sort pointed out.

GFAL operates in multiple regions, including the United Arab Emirates, where its utility token has received regulatory approval, Sort said. "We are seeing where we will go and where we will focus. But definitely, one of the markets is going to be China because of who is behind us and also because of the great potential that China has as an overall market."

GFAL plans to tackle the Chinese market next year with careful consideration of local regulations and cultural preferences, according to Sort. Diamond Dreams will feature jewelry designed for Chinese consumers, showing its commitment to localization, he added.

While acknowledging regulatory challenges regarding utility tokens in China, Sort pointed out the importance of understanding and adapting to local frameworks and that GFAL's experience in securing approval in the UAE could provide valuable insights for navigating Chinese regulations.

Chinese developers have made significant strides in the global market and have had tremendous success with Genshin Impact and PUBG Mobile, Sort noted, adding that GFAL's model could help developers in China reach wider international audiences.

GFAL is particularly interested in partnering with Chinese developers to adapt existing games to its platform, Sort said. "There are many great games that have already been released in China, and we aim to help bring them to a wider audience overseas.

"This trend has been growing over the last decade, with more Chinese-developed games being played globally," Sort pointed out. "As developers and publishers of content, we will approach Chinese companies to pitch our case, and if they wish to adapt their games to our model, they are more than welcome to do so."

Editor: Martin Kadiev