The Future of Play to Earn Games
Play-to-Earn (P2E) games are currently causing massive disruption in the online gaming world. The ascent of the P2E model is in part thanks to the growing popularity of crypto gaming, the wide receptivity of digital currencies, and the advent of blockchain technology.
The apparent initial success of crypto gaming has many wondering what the future of Play-to-Earn games is.
In this post, we’re going to take a deep dive into this enterprise in order to understand why some are convinced that this niche has the potential to become the next big thing in the gaming industry. But first, a quick definition of P2E games.
What are P2E Games?
Play-to-Earn games are digital currency-based video games. Players get to trade in-game time for assets such as NFTs, cryptocurrencies, and tokens that can be sold on open marketplaces for fiat currency or swapped out for another virtual currency.
These games have gained a widespread following because there’s a financial incentive to play. Gamers are given a chance to become investors through gameplay. In a nutshell, you’re playing games and making an income. It’s really a lucrative concept for all involved.
So, where does all of this leave us?
The Future Belongs to the Metaverse
Virtual games have been slowly edging into the metaverse. The aggressive expansion of crypto games into the NFT market has propelled gamers in the direction of the metaverse.
Gamers aren’t just being thrown into a virtual economy but an entire world where individuals can even purchase digital real estate.
And just how invested are people?
Well, many have already moved past the exploration stage of meta-universe games as evidenced by the purchase of a piece of virtual land in Decentraland for a record $913,000 in 2021.
P2E Set to Overtake Legacy Gaming
For gamers, P2E games are the inevitable fate of the gaming industry. People are desperately looking for ways to monetize the time spent playing games and developers are all too happy to make this a reality for them.
In the real world, you already exchange your time for money. So, why not offer people a way to make money while doing what they love?
It’s a business model that has found resounding success with games such as Axie Infinity which is especially popular in Vietnam and the Philippines where many gamers were able to make an income during the COVID-19 pandemic.
Current P2E Games Challenges
While the future of Play-to-Earn games seems lucrative on paper, there are a few practical hurdles that must first be overcome.
Firstly, there is a need to build and establish stronger followings. Here’s a quick look at the number of active daily players for three of the most popular games:
Secondly, active daily players aren’t a great indicator of future success. More needs to be done in order to prove client retention.
And lastly, there has been a demand for better game visuals for many of the leading games. Axie Infinity graphics in particular have received bad rapport when pitted against those of free-to-play games like Pokémon Go and Hearthstone.
The fact that P2E games have successfully penetrated the gaming industry is evident to all. That they will continue to grow as the metaverse becomes more and more mainstream remains to be seen.
Looking for more NFT insight? Check out these previous posts:
Everything You Should Know About Buying NFTs for the First Time
NFTs Mania: How to Cash in on the NFT Hype Train