Play-to-Earn games have grown in popularity as they provide players with the opportunity to earn money by playing games, but face some challenges due to system reviews. Will the play-to-earn model disappear in 2023?
Play-to-earn games, also known as “P2E” games, have grown in popularity in recent years as they offer players the opportunity to earn real money or cryptocurrency by playing games. games. For clarification: Play to Win is not intended to include all GameFi. They are simply the first species to appear under the GameFi banner.
The concept is simple: players complete in-game tasks or challenges and are rewarded with in-game items or currency that can be converted into real money or cryptocurrency. GameFi pioneered this genre, providing many people with an easy and fun way to learn about the concept of blockchain and cryptocurrency.
While this model has been successful in recent years, the P2E business model has faced several challenges over time, suggesting that it could be on the brink of extinction by 2023.
Introducing the Play-to-Earn Game Model
Play-to-earn games work on a simple principle: players earn real money or cryptocurrency by completing in-game tasks or challenges. These rewards can take the form of in-game items ( skins, cosmetics) or currencies that can be converted into real money or cryptocurrency on external markets or exchanges.
The appeal of Play to Earn games is the ability to earn real money or cryptocurrency while playing, rather than simply spending money to purchase in-game items or currency. model has been successful for some games like CryptoKitties and Axie Infinity, which have attracted a large player base and generated significant profits.
However, the play-to-earn model is not without its challenges. For a Play to Earn game to be successful, it must attract a large base of players and sustain their interest over a period of time. In other words, there is an inherent problem with durability.
This can be difficult as players lose interest in the game or find it too difficult to earn meaningful rewards. Additionally, the Play to Earn model relies on external marketplaces or exchanges to convert game rewards into real money or cryptocurrency, which can involve volatility and risk.
Challenges for the Play to Earn gaming industry
Another challenge is the issue of player retention. For a Play to Earn game to be successful, it must be able to retain players and keep them engaged over a period of time. However, many Play to Earn games need help as players lose interest or struggle to earn meaningful rewards. This can lead to high churn, which can hurt the long-term success of a Play to Earn game.
The issues I mentioned aren’t something the community has just figured out, but it’s something the developers have been considering since the GameFi summer during the pandemic. For this reason, some developers have shifted to a play and earn economy, where the focus is on creating fun games before developing the economy.
Examples include Undeads blocks, Treeverse, Illuvium, Oath of Peak and many more.
In summary, the money-making gambling industry is facing several challenges that indicate that it could disappear in 2023. However, this is not a problem to be lamented, but a fact that should be celebrated.
While the Play to Earn model has been successful for some games, it’s important for developers and gamers to think about the long-term sustainability and usability of this model. In order to ensure the future success of the gaming industry, it may be necessary to explore alternative, more sustainable and player-friendly game monetization models.
Overall, the future of the gaming industry will depend on finding monetization models that are sustainable, player-friendly, and able to support the growth and development of the industry as a whole. By considering these factors, we can ensure that the gaming industry will continue to thrive and grow in the years to come.
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Edmond is a passionate writer of video games, GameFi and Web3. He has worked for major GameFi companies and gaming/crypto news websites.