The NFT games business has exploded in popularity as a result of the COVID epidemic, and is on course to generate $180 billion in sales by 2021. At the same time, there are obstacles, and the sector is ready for upheaval. Blockchain games with earn-as-you-play features and non-fungible tokens are set to permanently alter the scene.
You’ll discover in this article:
- What are the gaming industry’s current issues
- What are play-to-earn NFT games
- How do they address the gaming industry’s current challenges
- What has to happen for P2E NFT games to become widespread
Continue reading to see what makes this new generation of gaming so interesting.
What are the gaming industry’s current challenges?
Pay-to-play, free-to-play, season passes, and downloadable content (DLCs) have all become very popular and profitable business models for nft games free to play. However, each of these has trade-offs.
1. The conventional approach – “Pay-to-Play” and downloadable content
While the pay-to-play business provides an engaging gaming experience, there is an entrance hurdle. You must pay for the game in advance, and in certain situations, you may also need to purchase an expensive gaming device or computer to run the game successfully.
After a game is released, game companies typically issue DLCs or season passes that feature more missions, characters, and goodies. The issue here is that some studios have abused this by releasing sub-par goods at launch and attempting to remedy them via different updates. Certain content is even hidden behind DLCs or season passes, requiring you to pay an additional fee to get the complete gaming experience.
2. Microtransactions and the “Free-to-Play” paradigm
Free-to-play League of Legends and Fortnite have grown in popularity lately, particularly among mobile players, owing to the fact that gamers get the complete game for free. However, game companies get revenue via advertisements and microtransactions. It’s rather aggravating to see an advertisement flash up every ten seconds. Learn more about EA drops microtransactions.
To entice players to spend money, some game developers balance gameplay in favor of features that need microtransactions, such as goods with enhanced stats. This is referred to as “pay-to-win,” and it is infuriating for players who do not choose to or cannot afford to spend their hard-earned money on improving their in-game character quicker. That is why NFT games like Starcraft and League of Legends have formed the backbone of the eSports sector, since they are really a contest of talent, with the winner being the best player.
3. Establishing a Career in the Gaming Industry
It’s challenging for the typical player to establish a viable profession in gaming. If you’re really talented at a game, you may pursue professional status and join an esports team. However, only a select few achieve professional success, and a professional’s career is often brief.
Gamers may also try creating video on sites like as YouTube, Bilibili, or Twitch in order to make subscription fees or get sponsorship partnerships. However, you’ll need to begin promoting yourself and often “whale” on NFT games in order to cover all of the information. Additionally, it takes time to develop an audience before achieving success.
Finally, apart from these gaming economic strategies, players are mostly at the mercy of game publishers nowadays. While players may have paid for in-game skins, characters, and stuff, the game publisher maintains them all and may simply choose to remove them or even ban / terminate your account. Additionally, game publishers have strict restrictions on how in-game characters and objects may be traded, since they want the largest number of players to purchase their NFT games or pay for stuff.
So, what are play-to-earn non-financial-transaction NFT games?
Play-to-earn is precisely what the name implies – you play a game in order to earn money, in this instance, cryptocurrency. This adds another layer of complexity to video NFT games, shifting the emphasis away from pay-to-play or pay-to-win and toward play-to-earn.
NFTs (non-fungible tokens) are digital tokens that are one-of-a-kind. They denote ownership of Internet-related objects such as art, music, and memes. Characters, skins, weapons, and other in-game things may all be considered NFTs in the gaming environment.
Thus, play-to-earn NFT games enable players to earn money while maintaining total ownership of their characters and in-game assets.
How can play-to-earn NFT games address the gaming industry’s current issues?
The P2E model resolves some of the current concerns with conventional gaming, since the game itself is often “free,” and earning and spending money requires skill. The more skilful you get, the more crypto you earn to spend on character upgrades. While there will always be whales, you may now compete using the cryptocurrency you earned by playing the game.
P2E NFT games provide players with a new revenue source if they are not interested in becoming a dedicated eSports gamer or broadcaster. You may need to make an initial commitment, but if you play consistently, you will earn it back and more. This is especially effective in poor nations, where the profits on P2E NFT games far exceed the minimum wage. Are you not convinced? A 22-year-old man used the money he earned playing Axie Infinity to purchase two properties. This is a game-changer (pun intended) in and of itself!
Additionally, NFTs resolve the ownership issue. Because the majority of P2E NFT games are entirely decentralized, no one may terminate your account. You may trade, sell, or even lend your character to other players in a P2E game in return for cryptocurrency. This increases the in-game cryptocurrency’s value exponentially, since it is required for every transaction. The greatest aspect is that gamers can immediately sell in-game bitcoin for cash, generating additional revenue from P2E NFT games. Click here to get about blockchain & cryptocurrency laws and regulations.
What is required for play-to-earn NFT games to become popular?
P2E NFT games need more time to build. At the moment, there are certain restrictions.
The most evident disadvantage is the complexity of installation. It’s simple to create a profile for a play-to-earn game. However, the difficult aspect is creating your cryptocurrency wallet. To get started, you may need to purchase some ETH or an in-game persona, which comes with significant gas costs. As a result, the NFT games remain relatively inaccessible to the typical player who has never dabbled with crypto.