Play to Earn games have gained popularity as a way for players to earn by playing games, but face several challenges due to criticism of its system. Will 2023 finally be the extinction of play-to-earn?
Play to Earn games, also known as “P2E” games, have gained popularity in recent years as a way for players to earn real money or cryptocurrency by playing games. To clarify, the play-to-earn should not encompass all GameFi. They are simply the first type to emerge under the GameFi banner.
The concept is simple: players complete tasks or challenges within the game and are rewarded with in-game items or currency that can be converted into real money or cryptocurrency. It’s the genre that pioneered GameFi, presenting a simple yet fun way for many people to familiarize themselves with the concept of blockchain and cryptocurrency.
While this model has been successful for the past few years, over time, the P2E economic model eventually faced several challenges that suggest it may be at risk of extinction in 2023.
Overview of the Play to Earn game model
Play-to-Earn games operate on a simple principle: players earn real money or cryptocurrency by completing tasks or challenges within the game. These rewards can be in the form of in-game items (skins, cosmetics) or currency that can be converted into real money or cryptocurrency through external marketplaces or exchanges.
The appeal of Play to Earn games lies in the ability to earn real money or cryptocurrency by playing games, rather than simply spending money to purchase in-game items or currency. This model has been successful for some games, such as CryptoKitties and Axie Infinity, which have attracted large player bases and generated significant profits.
However, the Play to Earn model is not without its challenges. In order for a Play Earn game to be successful, it must attract a large player base and sustain their interest over time. In other words, an inherent sustainability problem.
This can be difficult, as players may lose interest in the game or find it too difficult to earn significant rewards. In addition, the Play to Earn model relies on external marketplaces or exchanges to convert in-game rewards into real money or cryptocurrency, which can be subject to volatility and risks.
Challenges facing the Play to Earn game industry
Another challenge is the issue of player retention. In order for a Play to Earn game to be successful, it must be able to retain players over time and keep them engaged. However, many Play to Earn games need help to do this, as players may lose interest or find it difficult to earn significant rewards. This can lead to a high rate of player churn, which can be detrimental to the long-term success of a Play to Earn game.
The problems I have mentioned are not something the community has figured out just now, but it’s something builders have considered since GameFi summer during the pandemic. This is why several developers have shifted towards a Play and Earn type of economies that focus on building fun games before developing its economy.
Examples are Undeads Blocks, Treeverse, Illuvium, Oath of Peak, and so much more.
Final Thoughts
In conclusion, the Play to Earn game industry is facing several challenges that suggest it may be at risk of extinction in 2023. However, instead of being a subject that requires mourning, it is a fact that should be celebrated.
While the Play to Earn model has been successful for some games, it is important for developers and players to consider the long-term sustainability and player-friendliness of this model. In order to ensure the future success of the gaming industry, it may be necessary to explore alternative models for monetizing games that are more sustainable and player-friendly.
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 continues to thrive and evolve in the coming years.