The video game business has become a megatrend since the coronavirus pandemic. Companies such as Activision Blizzard, Take Two Interactive and Electronic Arts achieved huge increases in their stock prices during this period. However, these companies are pursuing an outdated business model.
Players need to buy a game to get access to it. Next, players make in-game transactions to get special items and perks. There is a significant drawback to this approach – players invest their money without taking ownership of the virtual items.
What is the problem with modern computer games?
Currently, developers are taking two main approaches to computer game development:
- Pay-to-Play. This includes typical games that players purchase digitally on the special platform or as a physical version. In addition to the cost of purchase, players can also spend money as they play.
- Free-to-Play. In this approach, studios develop games for free, but the gameplay itself consists of buying special perks and items that provide advantages over opponents. The most successful free-to-play game of recent years is Fortnite by Epic Games.
The Free-to-Play concept has become a new industry standard. For developers, this approach is also very profitable. After all, Fortnite alone brought in about $1.8 billion in revenue in 2020. However, free-to-play games have a significant drawback: ownership. Players who invest money do not have ownership of the purchased items. If, for example, the account is deleted, the items will also be lost.
The logical solution to this problem is Play-to-Earn games.
What are Play-to-Earn games and what problem does this approach solve?
Play-to-Earn is a new approach that regulates ownership. Simply put, players acquire ownership of items in Play-to-Earn games. The Play-to-Earn model is an evolution of Free-to-Play – games remain free but offer players ownership on different items.
More important, however, is the fact that players can earn money in the game itself. This works by giving the user ownership of individual items in the game. Rare items can quickly increase in value due to high demand.
Thus, the greater the number of players, the more income can be generated from rare items. This approach is not only interesting for players but also developers, since financially motivated players tend to show more interest in the game and stay in the ecosystem longer.
How does the Play-to-Earn model work?
Play-to-Earn games use Non-Fungible Tokens (NFT). NFT tokens have already experienced a stir in early 2021. At that time, however, the focus of the market was the tokenization of art objects. This time, it’s about tokenized items in games. What makes NFTs special is their uniqueness. Each token can only exist in one instance.
Yes, developers can create visually identical items as NFT tokens several times, but their identifiers will be unique. Accordingly, some items are only available in limited quantities.
Once an NFT token is released, the developers’ influence on its price ends. They receive a reward for the tokens released and then no longer have much influence on the further development of the price. Thus, items with very good properties can quickly reach a high value.
Soon non-custodial Sapien Wallet will support NFT tokens. This cryptocurrency wallet is unique because you can send and receive cryptocurrency through a special chat, and each user has a rating. This crypto wallet is worth your attention.
What kind of blockchain is used for play-to-earn games?
Most of the available Play-to-Earn games use ERC-721 tokens. Accordingly, Play-to-Earn games are developed on the Ethereum blockchain.
What Play-to-Earn games are popular right now?
Play-to-Earn games are very attractive for most gamers because they allow them to sell legendary items and earn real money. But what Play-to-Earn games are popular right now?
Here are 10 of the biggest and most popular play-to-earn games:
- Axie Infinity
- NBA TopShot
- The Sandbox
- Zed Run
- Gods Unchained
- Vulcan Verse
Conclusion: Play-to-Earn games can change the gaming industry
Play-to-Earn is an interesting approach that has the potential to exist. By actively participating in the game and recruiting new associates, players can increase the value of the items they earn. Therefore, an active community positively affects the increasing value of various NFTs. However, the big question is when developers will realize and adapt this new trend to their games. The popularization of the Play-to-Earn concept will have a positive impact on the development of the entire cryptocurrency market.