Newzoo has published a report examining blockchain and play-to-earn games. According to the report, most players play these games to earn money. Most of the active traffic comes from countries like Brazil, the Philippines, and Vietnam.
According to Newzoo, blockchain games have yet to reach the mainstream audience. In addition, games based on the play-to-earn system do not attract the attention of the masses who play games for fun. Play-to-earn games are seen as business models rather than entertainment.
Play-to-earn games have seen a massive boom during the pandemic. Blockchain-based projects such as Axie Infinity, Gala, and Sandbox have grown hundreds of times in a short time. Newzoo says that this is related to the fact that people who are unemployed due to the pandemic turn to alternative income sources. Web3 games contribute positively to people’s economic situation.
On the other hand, most early blockchain and NFT games required investment to earn money. The price of NFTs needed to start playing some games was also high. Nowadays, this situation has changed a bit.
The play-to-earn industry is relatively new. Competition is very high, and developers are forced to act quickly. This means sacrificing some of the features found in a regular game. Developers emphasize the business model side of play-to-earn games more than the game. However, developing a play-to-earn game with a sustainable economy is still challenging.
Newzoo lists the advantages of play-to-earn games as follows:
- Players can take real ownership of in-game assets.
- Players can earn money from play-to-earn games.
- In-game assets can be easily traded in open markets.
- Play-to-earn items can be combined. A player can transfer existing game assets to another game.
The disadvantages of play-to-earn games are as follows:
- Some games have a very high entry cost. The player needs to invest a significant amount.
- The gameplay is still rudimentary and highly focused on economic gain rather than a fun player experience.
- Many play-to-earn games do not have a sustainable system.
- Regulations could undermine the play-to-earn system.
- The necessity of using crypto wallets makes it difficult for play-to-earn games to quickly reach the mainstream audience.
- Most native gamers’ distaste for NFTs and blockchain.
As can be seen, the disadvantages of play-to-earn games outweigh the advantages quantitatively. Blockchain-based games still have a long way to go. In short, blockchain and play-to-earn games are successful as a business model but fail when it comes to games. For more information on the subject, you can check out the Newzoo report.