Video gaming has typically been considered a relatively sedentary pastime with little potential for financial gain. The vast majority of those involved in the industry, essentially everyone who is not a top-tier professional and makes money through competition winnings or streaming revenue, tend to view it as a hobby.
However, with the global gaming market now valued at $300 billion (more than the combined music and film industries), gamers are looking into new avenues for monetizing their passion. And thanks to the popularity of “play-to-earn” games, this fantasy is already coming true.
Play-to-earn is a novel idea that allows gamers to earn money in the real world just by enjoying their favorite games; there is no requirement to be a well-known streamer or participate in competitions. What, however, is play-to-earn? What relevance does it have to the cryptocurrency sector, the gaming sector, and beyond? From our perspective, keep reading.
Play-to-earn gaming is what is it?
The term “play-to-earn gaming” (commonly abbreviated as “P2E”) refers to a group of video games that enable players to make money in the real world while they play. The games frequently use blockchain technology and cryptocurrencies to make these revenue streams possible. Playing games on their computers and smartphones means players worldwide are currently earning money from cryptocurrencies or NFTs thanks to P2E.
Play to Earn NFT game Development Company are using blockchain technology to create exclusive, tradeable in-game items. An NFT, a cryptocurrency unique to that game, or even a well-known cryptocurrency could be used to represent these.
In games where NFTs are earned, they can be sold to other players, collectors, or speculators at various marketplaces. After receiving these rewards, the player can export the coins to a crypto wallet and convert them to a fiat currency, like U.S. dollars (both in-game and secondary market).
What play-to-earn games are the most well-liked right now, and which ones will follow?
As P2E gaming gains acceptance, hundreds of developers have published their works in the category. However, a select few games stand out from the crowd when it comes to popularity and revenue potential.
Axie Infinity is a popular play-to-earn game with 2.8 million daily users and a $3.8 billion total trading volume. The typical Axie Infinity player could make about 1,125 tokens in the game’s native cryptocurrency each week as of July 2021. That meant that at the time, playing the game alone could earn players an estimated $389.48 per week. Notably, the cost of the tokens has significantly decreased, and the updated earnings potential is now estimated to be around $100 weekly (research drawn from the Cryptoday newsletter).
Other popular P2E games with DeFi roots include some others. With Aave’s Aavegotchi, users can use NFTs to play with cartoon creatures and stake tokens. You can earn a yield on Aave just by participating in the game.
Some of the biggest names in the industry, including Assassin’s Creed and Far Cry developer Ubisoft, are starting to produce P2E games in addition to the numerous independent studios already having them. The upcoming Ghost Recon game will include NFTs, according to the French developer’s most recent announcement.
The leader of the NFT, Bored Ape Yacht Club, has also disclosed that they are investigating the market, with a P2E game anticipated in 2022.
How is the gaming community responding to play-to-earn?
Though blockchain technology supporters have been ecstatic to see the video game industry explore it, some gamers have expressed resistance to the idea of cryptocurrency entering their world.
Gamers expressed their displeasure with the RisingMax NFT news when it was announce, speculating that this might lead to lower quality games on Twitter and other social media platforms. “Letting this slide is just the tacit endorsement the rest of the industry needs to nosedive into full-time crypto nonsense,” said Cultured Vultures, one gaming media outlet.
Players may feel that P2E is an extension of the microtransaction style of game development or that there are too many barriers to entry. Even though many play-to-earn games are build on well-known blockchains (like Ethereum and Polygon), converting them into a more liquid asset isn’t always straightforward. While selling NFTs can take time, in-game coin values can change drastically.
On the other hand, the RisingMax announcement is like the holy grail for gamers interests in cryptocurrencies. Many other games have had unofficial or illegal ways to sell loot for real-world money. For example, the prevalent Diablo III offered a player-only auction house from which gamers made real-world money. Some gamers who favor P2E have expressed similarities in the system to already existing game concepts.
P2E supporters claim that the technology can legalize gaming as income in several contexts, such as selling loot that players have laboriously earned in-game. Compared to the challenging process of becoming a professional competitive gamer or streamer, it’s unquestionably one of the easiest ways to make money from gaming.
Regardless of your opinion of P2E, it’s clear that it will significantly impact gaming and cryptocurrency in general. The question is when and how, not if, the next generation of gaming will incorporate NFTs and cryptocurrencies.