Triple O Games has been working on a product like the one it now owns since early to mid-June 2019. Knowing the market, we were aware that the important thing was to make a quality product—a fun game with intrinsic motivations (such as motivation and the challenge of overcoming). The main problem with all games based on NFTs is that their main asset is extrinsic motivation (making money). Therefore, the key to success is to know how to make a perfect mix of both, making the player have fun in order to achieve a higher retention and number of players, besides being able to earn money while playing.
The value proposition of Triple O Games is that players have fun and earn money, achieving a perfect mix of a free-to-play and play-to-earn game with extrinsic and intrinsic motivations.
With a detailed roadmap of each of the activities and a thorough study of the competition, we can predict the income we can obtain. In addition, three forecasts have been made: optimistic revenues, realistic revenues and pessimistic revenues. For the expenses, they vary according to the revenues, especially for marketing expenses.
Studying the income of the competition, we have seen that their income at the launch of the product ranges from $1 per user in the first months after release to more than $10 after 2 years of live-ops, so we have estimated that a consistent number would be $5, taking into account, to a greater extent, in-app ads, which at the beginning will be very important until it is possible to iterate the revenue of the in-app purchases.
Before we begin, it is necessary to mention the percentages of the total that we estimate to be for each of the income items:
1. Revenue from in-app purchases It is in this item that one of the main revenue components of the company resides. We relied on numerous of our competitors to know what percentage of their incomes came from in-app purchases, and we were able to determine that the average was 55%.
2. App ad revenue These are typically approximately 45–50% of the company's revenue. However, in this case, wanting to be as realistic as possible, we have estimated 40% of revenues, according to users.
3, 4, 5- Revenue from Sales of Token $TOG and NFT Transactions: As we prepare for the Token Generation Event (TGE) in Q1-Q2 2024, our projections show a promising start with an expected revenue of $901k. Beyond the initial sale, our strategy includes reward distribution and a token burning mechanism to foster a sustainable ecosystem, projecting revenues to rise to $2.1 million in the first year and potentially soaring to $100 million by the fourth year. This growth is anticipated not just from the token sales but also from the dynamic NFT marketplace we are cultivating.
This optimistic forecast is underpinned by the direct sales of NFTs and a strategic 5% fee on NFT market transactions. In the first year following the TGE and NFT integration, we're targeting $3 million in revenue from these transactions alone, with expectations to escalate to $12 million in the second year and exceed $100 million by the fourth year. Our collaboration with Immutable plays a crucial role in this strategy, facilitating a seamless transition for users from web2 to web3 environments and significantly boosting the adoption and utility of our tokens and NFTs. Our commitment to a balanced and robust ecosystem is designed to not only enhance the token's value but also to ensure our revenue projections are positively adjustable as the market evolves.
Here are our forecasts in an Excel file with the data we have available. We have presented three scenarios focusing solely on the Free-to-Play game (Web 2), and three others that include the Web 3 component alongside the Free-to-Play (Web 2). As I mentioned earlier, we will summarize all these calculations in a general manner below, but we believe it's important for you to be able to visualize them.
https://docs.google.com/spreadsheets/d/1gIWp3GaMz2rCOZdRYiz6prqTDnlVmqd-UnDgfTQSYjI/edit#gid=259815559